VT S0316

Payment card networks are prohibited from charging interchange fees calculated as a percentage of transaction amounts that include state or local taxes or gratuities collected at point of sale

Networks cannot apply surcharges or increase fees on the non-tax/non-gratuity portion of transactions to offset the exclusion of taxes and gratuities

Gratuities covered include both voluntary tips and automatic service fees intended to replace voluntary tips

Violations carry a civil penalty of $1,000 per transaction, and merchants may sue for damages, equitable relief, and attorney's fees

Effective date: July 1, 2026