Arizona 2025 Regular Session

Arizona House Bill HB2629 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~House Engrossed~~ merchant; fees; calculation; transactions; penalty State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 ~~HOUSE BILL~~ 2629 AN ACT amending title 44, chapter 26, article 1, arizona revised statutes, by adding section 44-7017; relating to electronic transactions. (TEXT OF BILL BEGINS ON NEXT PAGE)
	1	+	REFERENCE TITLE: merchant; fees; calculation; transactions; penalty State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2629 Introduced by Representative Weninger AN ACT amending title 44, chapter 26, article 1, arizona revised statutes, by adding section 44-7017; relating to electronic transactions. (TEXT OF BILL BEGINS ON NEXT PAGE)
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	9	+	REFERENCE TITLE: merchant; fees; calculation; transactions; penalty
	10	+	State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
	11	+	HB 2629
	12	+	Introduced by Representative Weninger
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11		-	House Engrossed merchant; fees; calculation; transactions; penalty
12		-	State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
13		-	HOUSE BILL 2629
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19		-	merchant; fees; calculation; transactions; penalty
	14	+	REFERENCE TITLE: merchant; fees; calculation; transactions; penalty
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29	24		State of Arizona
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35	30		First Regular Session
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	44	+	Introduced by
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	46	+	Representative Weninger
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55	64		AN ACT
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59	68		amending title 44, chapter 26, article 1, arizona revised statutes, by adding section 44-7017; relating to electronic transactions.
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65	74		(TEXT OF BILL BEGINS ON NEXT PAGE)
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69	78		Be it enacted by the Legislature of the State of Arizona: Section 1. Title 44, chapter 26, article 1, Arizona Revised Statutes, is amended by adding section 44-7017, to read: START_STATUTE44-7017. Interchange fees; prohibition; civil penalty; definitions A. An issuer, a payment card network, an acquirer bank or a processor may not receive from or charge to a merchant an interchange fee on the tax amount of an electronic payment transaction if the merchant informs the acquirer bank or the acquirer bank's designee of the tax amount as part of the authorization or settlement process for the electronic payment transaction. The merchant shall transmit the tax to avoid being charged an interchange fee of an electronic payment transaction. B. A merchant that does not transmit the tax in accordance with subsection A of this section shall submit tax documentation for the electronic payment transaction to the acquirer bank or the acquirer bank's designee not later than one hundred eighty days after the date of the electronic payment transaction and the acquirer bank shall credit the amount of the interchange fee to the merchant within thirty days after the merchant submits the necessary tax documentation. C. A payment card network is not liable for the accuracy of any tax data reported by a merchant. D. An issuer, a payment card network, an acquirer bank or a processor may not impose an interchange fee by manipulating the calculation or by 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. E. an issuer, a payment card network, an acquirer bank, a processor or other designated entity that violates this section is both: 1. Subject to a civil penalty of $1,000 for each electronic payment transaction. 2. Required to refund the interchange fee. F. For the purposes of this section: 1. "Acquirer bank": (a) Means a member of a payment card network that contracts with a merchant for the settlement of electronic payment transactions. (b) Includes a merchant or processor that either contracts directly with a merchant or indirectly through a processor that processes electronic payment transactions. 2. "Authorization" means the process through which a merchant requests approval for an electronic payment transaction from the issuer. 3. "Clearance" means both of the following: (a) The process of transmitting final transaction data from a merchant to an issuer for posting to the cardholder's account. (b) The calculation of any fees, charges or interchange fees that may apply to an issuer or merchant. 4. "Credit card" means any of the following: (a) A card. (b) A plate. (c) A coupon book. (d) Any other credit device used to obtain money, property, labor or services through the use of credit. 5. "Debit card": (a) Includes a general-use prepaid card as defined in 15 united states code section 1693l-1. (b) Does not include paper checks. 6. "Electronic payment transaction" means a transaction in which a person uses a debit card, a credit card or any other payment code or device that is issued or approved through a payment card network to debit a deposit account or use a line of credit if the issuance or approval is based on a signature, a personal identification number or other means. 7. "Interchange fee" means a fee that is established, charged or received by a payment card network to compensate the issuer for the issuer's involvement in an electronic payment transaction. 8. "Issuer" means a person that issues a debit card or credit card or the issuer's agent. 9. "Merchant" means a person that may collect and remit a tax and use a payment card network to accept a form or payment to carry out electronic payment transactions. 10. "Payment card network" means an entity that, Directly or through licensed members, processors or agents, provides proprietary services, infrastructure and software to route information and data for the purposes of conducting an electronic payment transaction authorization and of clearance and settlement. 11. "Person" means any of the following: (a) An individual. (b) A firm. (c) A public or private corporation. (d) A government. (e) A partnership. (f) An association. (g) Any other organization or entity. 12. "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. 13. "Settlement" means the process of transmitting sales information to an issuing bank for collecting and reimbursing monies owed to a merchant and calculating and reporting the net transaction amount to the issuer and merchant for an electronic payment transaction that is cleared. 14. "Tax" means any use, occupation or excise tax that is imposed by this state or any political subdivision of this state. 15. "Tax documentation": (a) Means documentation that is sufficient for the payment card network to determine the total amount of the electronic payment transaction and the tax amount of the transaction. (b) Includes a single electronic payment transaction or multiple electronic payment transactions. END_STATUTE
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71	80		Be it enacted by the Legislature of the State of Arizona:
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73	82		Section 1. Title 44, chapter 26, article 1, Arizona Revised Statutes, is amended by adding section 44-7017, to read:
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75	84		START_STATUTE44-7017. Interchange fees; prohibition; civil penalty; definitions
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77	86		A. An issuer, a payment card network, an acquirer bank or a processor may not receive from or charge to a merchant an interchange fee on the tax amount of an electronic payment transaction if the merchant informs the acquirer bank or the acquirer bank's designee of the tax amount as part of the authorization or settlement process for the electronic payment transaction. The merchant shall transmit the tax to avoid being charged an interchange fee of an electronic payment transaction.
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79	88		B. A merchant that does not transmit the tax in accordance with subsection A of this section shall submit tax documentation for the electronic payment transaction to the acquirer bank or the acquirer bank's designee not later than one hundred eighty days after the date of the electronic payment transaction and the acquirer bank shall credit the amount of the interchange fee to the merchant within thirty days after the merchant submits the necessary tax documentation.
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81	90		C. A payment card network is not liable for the accuracy of any tax data reported by a merchant.
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83	92		D. An issuer, a payment card network, an acquirer bank or a processor may not impose an interchange fee by manipulating the calculation or by 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.
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85	94		E. an issuer, a payment card network, an acquirer bank, a processor or other designated entity that violates this section is both:
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87	96		1. Subject to a civil penalty of $1,000 for each electronic payment transaction.
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89	98		2. Required to refund the interchange fee.
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91	100		F. For the purposes of this section:
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93	102		1. "Acquirer bank":
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95	104		(a) Means a member of a payment card network that contracts with a merchant for the settlement of electronic payment transactions.
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97	106		(b) Includes a merchant or processor that either contracts directly with a merchant or indirectly through a processor that processes electronic payment transactions.
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99	108		2. "Authorization" means the process through which a merchant requests approval for an electronic payment transaction from the issuer.
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101	110		3. "Clearance" means both of the following:
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103	112		(a) The process of transmitting final transaction data from a merchant to an issuer for posting to the cardholder's account.
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105	114		(b) The calculation of any fees, charges or interchange fees that may apply to an issuer or merchant.
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107	116		4. "Credit card" means any of the following:
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109	118		(a) A card.
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111	120		(b) A plate.
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113	122		(c) A coupon book.
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115	124		(d) Any other credit device used to obtain money, property, labor or services through the use of credit.
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117	126		5. "Debit card":
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119	128		(a) Includes a general-use prepaid card as defined in 15 united states code section 1693l-1.
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121	130		(b) Does not include paper checks.
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123	132		6. "Electronic payment transaction" means a transaction in which a person uses a debit card, a credit card or any other payment code or device that is issued or approved through a payment card network to debit a deposit account or use a line of credit if the issuance or approval is based on a signature, a personal identification number or other means.
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125	134		7. "Interchange fee" means a fee that is established, charged or received by a payment card network to compensate the issuer for the issuer's involvement in an electronic payment transaction.
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127	136		8. "Issuer" means a person that issues a debit card or credit card or the issuer's agent.
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129	138		9. "Merchant" means a person that may collect and remit a tax and use a payment card network to accept a form or payment to carry out electronic payment transactions.
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131	140		10. "Payment card network" means an entity that, Directly or through licensed members, processors or agents, provides proprietary services, infrastructure and software to route information and data for the purposes of conducting an electronic payment transaction authorization and of clearance and settlement.
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133	142		11. "Person" means any of the following:
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135	144		(a) An individual.
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137	146		(b) A firm.
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139	148		(c) A public or private corporation.
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141	150		(d) A government.
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143	152		(e) A partnership.
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145	154		(f) An association.
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147	156		(g) Any other organization or entity.
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149	158		12. "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.
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151	160		13. "Settlement" means the process of transmitting sales information to an issuing bank for collecting and reimbursing monies owed to a merchant and calculating and reporting the net transaction amount to the issuer and merchant for an electronic payment transaction that is cleared.
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153	162		14. "Tax" means any use, occupation or excise tax that is imposed by this state or any political subdivision of this state.
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155	164		15. "Tax documentation":
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157	166		(a) Means documentation that is sufficient for the payment card network to determine the total amount of the electronic payment transaction and the tax amount of the transaction.
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159	168		(b) Includes a single electronic payment transaction or multiple electronic payment transactions. END_STATUTE