Connecticut 2025 Regular Session

Connecticut Senate Bill SB01460 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 4523 1 of 3
4	4
5	5	General Assembly Raised Bill No. 1460
6	6	January Session, 2025
7	7	LCO No. 4523
8	8
9	9
10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
12	12
13	13
14	14	Introduced by:
15	15	(FIN)
16	16
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19	19
20	20	AN ACT CONCERNING INTERCHANGE FEES ON ELECTRONIC
21	21	PAYMENT TRANSACTIONS.
22	22	Be it enacted by the Senate and House of Representatives in General
23	23	Assembly convened:
24	24
25	25	Section 1. (NEW) (Effective October 1, 2026, and applicable to sales 1
26	26	occurring on or after October 1, 2026) (a) As used in this section: 2
27	27	(1) "Credit card" has the same meaning as provided in section 53a-3
28	28	128a of the general statutes; 4
29	29	(2) "Debit card" means any card, code, device or other means of 5
30	30	access, or any combination thereof, that is issued or authorized for use 6
31	31	to debit an asset account held directly or indirectly by a financial 7
32	32	institution and that may be used by the cardholder to obtain money, 8
33	33	goods, services or anything else of value, regardless of whether the card, 9
34	34	code, device or other means of access, or any combination thereof, is 10
35	35	known as a debit card. "Debit card" includes a general-use prepaid card, 11
36	36	as defined in 15 USC 1693l-1, as amended from time to time; 12
37	37	(3) "Electronic payment transaction" means a transaction in which a 13
38	38	Raised Bill No. 1460
39	39
40	40
41	41
42	42	LCO No. 4523 2 of 3
43	43
44	44	purchaser uses a payment card or other payment code or device issued 14
45	45	or approved through a payment card network to debit an asset account 15
46	46	or use a line of credit, whether authorization is based on a signature, 16
47	47	personal identification number or other means; 17
48	48	(4) "Interchange fee" means a fee charged to a retailer, as defined in 18
49	49	section 12-407 of the general statutes, for the purpose of compensating 19
50	50	the financial institution or other entity that issued the payment card for 20
51	51	such institution's or entity's involvement in the electronic payment 21
52	52	transaction; 22
53	53	(5) "Payment card" means a credit card, debit card or other card, code, 23
54	54	device or other means of access that is issued to an authorized user to 24
55	55	obtain money, goods, services or anything else of value; 25
56	56	(6) "Payment card network" means an entity that (A) directly or 26
57	57	through licensed members, processors or agents provides the 27
58	58	proprietary services, infrastructure and software that routes 28
59	59	information and data to conduct payment card transaction 29
60	60	authorizations, clearance and settlements, and (B) is used by a retailer 30
61	61	to accept as a form of payment a brand of payment card that may be 31
62	62	used to carry out electronic payment transactions; and 32
63	63	(7) "Settlement" means the transfer of funds from a purchaser's 33
64	64	account to a retailer upon electronic submission of finalized sales 34
65	65	transactions to the payment card network. 35
66	66	(b) (1) Each payment card network shall exclude from the amount on 36
67	67	which an interchange fee is charged the amount of tax imposed under 37
68	68	chapter 219 of the general statutes on a transaction that is an electronic 38
69	69	payment transaction. 39
70	70	(2) Each payment card network shall (A) deduct the amount of such 40
71	71	tax from the calculation of interchange fees specific to each electronic 41
72	72	payment transaction at the time of settlement, or (B) rebate an amount 42
73	73	of interchange fee proportionate to the amount attributable to such tax. 43
74	74	Raised Bill No. 1460
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77	77
78	78	LCO No. 4523 3 of 3
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80	80	If the retailer is able to capture and transmit the amount of tax relevant 44
81	81	to the sale at the time of sale as part of the transaction finalization, such 45
82	82	deduction or rebate shall occur at the time of settlement. If the retailer is 46
83	83	unable to capture and transmit such information at the time of sale, the 47
84	84	retailer may submit to the payment card network, and the payment card 48
85	85	network shall accept as proof, sales data showing the amount of such 49
86	86	tax collected on sales subject to an interchange fee, and the payment card 50
87	87	network shall promptly credit the retailer's settlement account. 51
88	88	(c) If a payment card network violates any provision of this section, 52
89	89	the Attorney General may bring an action against such payment card 53
90	90	network in the superior court for the judicial district of Hartford, 54
91	91	seeking (1) imposition and recovery of a civil penalty of not more than 55
92	92	one thousand dollars for each violation, and (2) a refund to retailers of 56
93	93	the amount of any interchange fees imposed in violation of this section. 57
94	94	This act shall take effect as follows and shall amend the following
95	95	sections:
96	96
97	97	Section 1 October 1, 2026, and
98	98	applicable to sales
99	99	occurring on or after
100	100	October 1, 2026
101	101	New section
102	102
103	103	Statement of Purpose:
104	104	To prohibit payment card networks from including sales and use taxes
105	105	in the amount on which interchange fees are imposed.
106	106
107	107	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
108	108	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
109	109	underlined.]
110	110