North Carolina 2025 Session Status: In Committee Bipartisan · 11 R · 3 D cosponsors

HB 650 — No Interchange Fees on Sales Tax or Tips.

Last action — Serial Referral To Rules, Calendar, and Operations of the House Stricken

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced April 01, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Advancing 42% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 14 sponsors

    2 primary, 12 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (11 R · 3 D) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

93 added · 92 removed

Plain-language change summary

In the latest version of House Bill 650, the list of sponsors has been expanded to include more representatives, indicating broader support for the bill. Additionally, some technical language has been adjusted for clarity, but overall, the definitions of terms related to electronic payments remain unchanged. These updates suggest that the bill is gaining traction and support, which may lead to its successful passage.

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GENERAL ASSEMBLY OF NORTH CAROLINA H.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 650 Short Title:
650 Apr 1, 2025 SESSION 2025 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH10271-MU-32 Short Title:
Representative Howard.
Representatives Howard, Setzer, and N.
Jackson (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
A BILL TO BE ENTITLED AN ACT TO PROHIBIT INTERCHANGE FEES ON SALES TAX OR GRATUITIES.
Finance, if favorable, Rules, Calendar, and Operations of the House April 2, 2025 A BILL TO BE ENTITLED AN ACT TO PROHIBIT INTERCHANGE FEES ON SALES TAX OR GRATUITIES.
Chapter 66 of the General Statutes is amended by adding a new Article to read:
Chapter 66 of the General Statutes is amended byadding a new Article to read:
– A transaction in which a person uses a debit card, a 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.
– A transaction in which a person uses a debit card, a 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 *H650-v-1* General Assembly Of North Carolina Session 2025 credit, whether authorization is based on a signature, a personal identification number, or other means.
*DRH10271-MU-32* General Assembly Of North Carolina Session 2025 (8) Gratuity.
(8) Gratuity.
– Theprocess oftransmitting salesinformationto theissuing 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.
– Theprocess oftransmittingsalesinformationto theissuingbank for collection and reimbursement of funds to the merchant and calculatingand reporting the net transaction amount to the issuer and merchant for an electronic payment transaction that is cleared.
– Any use and occupation tax or excise tax imposed by the State or a unit of local government in the State.
– Anyuse and occupation tax or excise tax imposed by the State or a unit of local government in the State.
(a) An issuer, a payment card network, an acquirer bank, or a processor shall not receive or charge a merchant an interchange fee on the tax amount or gratuity of an electronic payment transaction if the merchant informs the acquirer bank or its designee of the tax or gratuity amount as part of the authorization or settlement process for the electronic payment transaction.
(a) An issuer, a payment card network, an acquirer bank, or a processor shall not receive or charge a merchant an interchange fee on the tax amount or gratuity of an electronic payment transaction if the merchant informs the acquirer bank or its designee of the tax or gratuityamount as part of the authorization or settlement process for the electronic payment transaction.
(c) This section does not create liability for a payment card network regarding the accuracy of the tax or gratuity data reported by the merchant.
Page 2 House Bill 650-First Edition General Assembly Of North Carolina Session 2025 (c) This section does not create liability for a payment card network regarding the accuracy of the tax or gratuity data reported by the merchant.
Page 2 DRH10271-MU-32 General Assembly Of North Carolina Session 2025 (d) It is unlawful for an issuer, a payment card network, an acquirer bank, or a processor to alter or manipulate the computation and imposition of interchange fees by increasing the rate or amount of the fees applicable to or imposed upon the portion of a credit or debit card transaction not attributable to taxes or gratuities to circumvent the effect of this section.
(d) It is unlawful for an issuer, a payment card network, an acquirer bank, or a processor to alter or manipulate the computation and imposition of interchange fees by increasing the rate or amount of the fees applicable to or imposed upon the portion of a credit or debit card transaction not attributable to taxes or gratuities to circumvent the effect of this section.
(c) Refund.–IfacourtfindsthatapersonhasviolatedthisArticle,thepersonshallrefund the merchant the interchange fee calculated on the tax or gratuity amount of the electronic payment transaction.
(c) Refund.– IfacourtfindsthatapersonhasviolatedthisArticle,thepersonshallrefund the merchant the interchange fee calculated on the tax or gratuity amount of the electronic payment transaction.
This act becomeseffectiveOctober 1,2025,and applies to transactions made on or after that date.
This act becomeseffectiveOctober 1,2025, and applies to transactions made on or after that date.
DRH10271-MU-32 Page 3
House Bill 650-First Edition Page 3
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How this bill changes current law

2 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill prohibits interchange fees on sales tax or gratuities related to electronic payment transactions and establishes provisions for penalties and data handling.

  • G.S. 115C-457.2

    The clear proceeds of these funds include the full amount of all civil penalties, civil forfeitures, and civil fines collected under authority conferred by the State, diminished only by the actual costs of collection, not to exceed twenty percent (20%) of the amount collected. → The clear proceeds of civil penalties provided for in this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.

    This change ensures that civil penalties for violations of the new interchange fee prohibition contribute to the existing Civil Penalty and Forfeiture Fund.

  • G.S. 75-1.1

    A violation of this subsection constitutes a violation of G.S. 75-1.1.

    This addition clarifies that violations of the new interchange fees regulations will also be considered violations of existing unfair competition laws.

Action History

  1. Serial Referral To Rules, Calendar, and Operations of the House Stricken

  2. Withdrawn From Com

  3. Re-ref to the Com on Commerce and Economic Development, if favorable, Judiciary 1, if favorable, Rules, Calendar, and Operations of the House

  4. Passed 1st Reading

  5. Ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House

  6. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 12 co-sponsors · 165 not signed on

Sponsors (2)

Co-sponsors (12)

Not signed on (165)

165 members have not signed on to this bill.

Show all 165 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 650?
HB 650 is sponsored by Matthew Winslow (Republican), Shelly Willingham (Democratic), Donna McDowell White (Republican), Harry Warren (Republican), Bill Ward (Republican), Garland E. Pierce (Democratic), Ben T. Moss, Jr. (Republican), Jeffrey C. McNeely (Republican), Tim Longest (Democratic), Jimmy Dixon (Republican), Brian Biggs (Republican), Neal Jackson (Republican), Mitchell S. Setzer (Republican), and Julia C. Howard (Republican).
What is the current status of HB 650?
This bill is in committee in the House. Introduced April 01, 2025. It must pass committee before a floor vote.
Where can I track HB 650?
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