S10552025 Regular Session

Adds to existing law to establish provisions regarding electronic payment transaction interchange fees.

ELECTRONIC PAYMENT TRANSACTIONS -- Adds to existing law to establish provisions regarding electronic payment transaction interchange fees.

ELECTRONIC PAYMENT TRANSACTIONS

IntroducedIn CommitteeFloor VoteEnacted

STATEMENT OF PURPOSE

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This legislation relates to interchange fees (also called swipe fees) charged to merchants on credit and debit card transactions. It excludes state and local sales taxes and gratuities from the calculation of the amount on which an interchange fee is charged for an electronic payment transaction, such as the use of a debit or credit card. It requires a payment card network to either deduct the amount of any tax and/or gratuity imposed from the calculation of interchange fees on purchases, or rebate an amount of interchange fees imposed on the state or local tax portion or gratuities portion of purchases.

FISCAL NOTE

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This legislation will have no negative impact on the General Fund or local units of government. If the state or local governments have instances where they charge a sales tax on an item and it’s paid for with an electronic payment, the fiscal impact will be a positive amount (for example, the Idaho State Liquor Division account will be positively impacted from the savings of sales made in the state-run liquor stores).