ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	House: COM DP 7-3-0-0

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HB 2629: merchant; fees; calculation; transactions; penalty

Sponsor: Representative Weninger, LD 13

Caucus & COW

Overview

Provides prohibitions relating to interchange fees.

History

Federal law requires the amount of any interchange transaction fee that an issuer may receive or charge with respect to an electronic debit transaction to be reasonable and proportional to the cost incurred by the issuer with respect to the electronic debit transaction. Each interchange transaction fee received or charged by the issuer cannot be greater than the sum of 21 cents and 5 basis points multiplied by the value of the transaction.

An interchange transaction fee is any fee established, charged or received by a payment card network and paid by a merchant or an acquirer for the purpose of compensating an issuer for its involvement in an electronic debit transaction.

Provisions

1. Prevents certain entities from receiving or charging an interchange fee on the tax amount of an electronic payment transaction provided the merchant informs the acquirer bank of the tax amount as part of the authorization for the electronic payment transaction. (Sec. 1)

2. Requires a merchant to transmit the tax to avoid being charged an interchange fee. (Sec. 1)

3. Instructs a merchant who has not transmitted the tax to submit tax documentation for the electronic payment transaction to the acquirer bank within 180 days after the transaction. (Sec. 1)

4. Requires the acquirer bank to credit the amount of the interchange fee to the merchant within 30 days after the submission of the tax documentation. (Sec. 1)

5. Specifies a payment card network is not liable for the accuracy of any tax data reported by a merchant. (Sec. 1)

6. Prohibits certain entities from manipulating the calculation or increasing the rate or amount of fees charged to a credit card or debit card transaction that are not attributable to the taxes or other fees charged to the retailer to impose an interchange fee. (Sec. 1)

7. Subjects entities that violate interchange fee provisions to a $1,000 civil penalty for each transaction and to refund the interchange fee. (Sec. 1)

8. Defines pertinent terms. (Sec. 1)

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12.                   HB 2629

13. Initials PB           Page 0 Caucus & COW

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