SB 564 — Interchange Fees on Taxes

Florida Senate - 2023 CS for CS for SB 564 By the CommitteesCommittee on CommerceBanking and Tourism;Insurance;

and BankingSenator andHutson Insurance;597-02621-23 2023564c1 A bill to be entitled An act relating to interchange fees on taxes;

and Senator Hutson 577-03479-23 2023564c2 A bill to be entitled An act relating to interchange fees on taxes;

(b) “Authorization”“Clearance” means the process throughof whichtransmitting final transaction data from a merchant requeststo approvalan issuer for anposting electronicto paymentthe transactioncardholder’s fromaccount and the issuer.calculation of fees and charges, including interchange fees, which apply to the issuer and Page 1 of 5 CODING:

(c) “Clearance” means the process of transmitting final Page 1 of 5 CODING:

Florida Senate - 2023 CS for CS for SB 564 577-03479-23597-02621-23 2023564c22023564c1 transaction data from a merchant to an issuer for posting to the cardholder’s account and the calculation of fees and charges, including interchange fees, which apply to the issuer and merchant.

(d)(c) “Credit card” means a card, plate, coupon book, or other credit device existing for the purpose of obtaining money, property, labor, or services on credit.

(e)(d) “Debit card”:

(f)(e) “Electronic payment transaction” means a transaction in which a person uses a debit card, credit card, or other payment code or device issued or approved through a payment card network to debit a deposit account or use a line of credit, whether authorization is based on a signature, a personal identification number, or other means.

(g)(f) “Interchange fee” means a fee established, charged, or received by a payment card network for the purpose of compensating the issuer for its involvement in an electronic payment transaction.

(h)(g) “Issuer” means a person issuing a debit card or credit card or the issuer’s agent.

(i)(h) “Merchant” has the same meaning as the term “dealer” in Pages. 2 of 5 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for CS for SB 564 577-03479-23 2023564c2 s.

(j)(i) “Payment card network” means an entity:

That directly or through licensed members, processors, orPage agents2 providesof the5 proprietaryCODING: services, infrastructure, and software that route information and data to conduct electronic payment transaction authorization, clearance, and settlement;

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2023 CS for SB 564 597-02621-23 2023564c1 or agents provides the proprietary services, infrastructure, and software that routes information and data to conduct electronic payment transaction authorization, clearance, and settlement;

(k)(j) “Processor” means an entity that facilitates, services, processes, or manages the debit or credit authorization, billing, transfer, payment procedures, or settlement with respect to any electronic payment transaction.

(l)(k) “Settlement” means the process of transmitting sales information to the issuing bank for collection and reimbursement of funds to the merchant and calculating and reporting the net transaction amount to the issuer and merchant for an electronic payment transaction that is cleared.

(m)(l) “Tax” means all taxes and fees levied under chapter 212 and s.

(n)(m) “Tax documentation” means documentation sufficient for the payment card network to determine the total amount of the electronic payment transaction and the tax amount of such transaction.

Examples of tax documentation include, but are not limited to, invoices, receipts, journals, ledgers, and tax returns filed with the PageDepartment 3 of 5Revenue CODING:or local taxing authorities.

(2) This section does not apply to an electronic payment transaction in which the tax amount is not separately stated on Page 3 of 5 CODING:

Florida Senate - 2023 CS for CS for SB 564 577-03479-23597-02621-23 2023564c22023564c1 Departmentthe ofconsumer’s Revenuepayment invoice, sales slip, or localother taxingevidence authorities.of sale as required under s.

(2) This section does not apply to an electronic payment transaction in which the tax amount is not separately stated on the consumer’s payment invoice, sales slip, or other evidence of sale as required under s.

(3) Except as provided in subsection (2), an issuer, a payment card network, an acquirer bank, or a processor may not receive or charge the merchant any interchange fees on the tax amount of an electronic payment transaction if the merchant informs the acquirer bankbank, its designee, or itsany designeeother entity as provided in the payment card network’s terms and conditions of service of such tax amount as part of the authorizationclearance process for the electronic payment transaction.

A merchant must transmit the tax amount data as part of the authorizationclearance process to avoid being charged interchange fees on the tax amount of an electronic payment transaction.

(4) A merchant that does not transmit the tax amount data in accordance with subsection (3) may submit tax documentation for the electronic payment transaction to the acquirer bankbank, its designee, or itsany designeeother entity as provided in the payment card network’s terms and conditions of service no later than 180 days after the date of the electronic payment transaction, and within 30 days, the issuer must credit to the merchant the amount of interchange fees charged on the tax amount of the electronic payment transaction.

Florida Senate - 2023 CS for CS for SB 564 577-03479-23597-02621-23 2023564c22023564c1 Section 2.