CS/HB 677 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0677-01-c1
Page 1 of 4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to interchange fees on taxes; creating 2
s. 655.969, F.S.; defining terms; requiring that 3
certain taxes listed on evidences of sales must be 4
excluded from the amount on which an interchange fee 5
is charged for that electronic payment transaction; 6
specifying requirements for payment card networks in 7
deducting taxes or rebating amounts; requiring 8
merchants and sellers to provide to payment card 9
networks proof of certain tax amounts or sales data 10
within a specified timeframe under certain 11
circumstances; specifying requirements for payment 12
card networks if a merchant or seller is unable to 13
capture and transmit tax amounts relevant to the sale 14
at the time of sale; providing a penalty; providing an 15
effective date. 16
17
Be It Enacted by the Legislature of the State of Florida: 18
19
Section 1. Section 655.969, Florida Statutes, is created 20
to read: 21
655.969 Interchange fees on taxes prohibited. — 22
(1) As used in this section, the term: 23
(a) "Credit card" means a card, plate, coupon book, or 24
other credit device existing for the purpose of obtaining money, 25
CS/HB 677 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0677-01-c1
Page 2 of 4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
property, labor, or services on credit. 26
(b) "Debit card": 27
1. Means a card, or other payment code o r device, issued 28
or approved for use through a payment card network to debit an 29
asset account, regardless of the purpose for which the account 30
is established, whether authorization is based on signature, 31
personal identification number, or other means; 32
2. Includes a general-use prepaid card as defined in 15 33
U.S.C. s. 1693l-1; and 34
3. Excludes paper checks. 35
(c) "Electronic payment transaction" means a transaction 36
in which a person uses a debit card, credit card, or other 37
payment code or device, issued or approved through a payment 38
card network, to debit a deposit account or use a line of 39
credit, whether authorization is based on a signature, personal 40
identification number, or other means. 41
(d) "Interchange fee" means a fee established, charged, or 42
received by a payment card network for the purpose of 43
compensating the issuer for its involvement in an electronic 44
payment transaction. 45
(e) "Issuer" means a person, or the person's agent, 46
issuing a debit card or credit card. 47
(f) "Payment card network" means an entity that: 48
1. Directly or through licensed members, processors, or 49
agents, provides the proprietary services, infrastructure, and 50
CS/HB 677 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0677-01-c1
Page 3 of 4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
software that routes information and data to conduct electronic 51
payment transaction authorization, clearance, and settl ement; 52
and 53
2. A merchant or seller uses to accept as a form of 54
payment a brand of debit card, credit card, or other device that 55
may be used to carry out electronic payment transactions. 56
(g) "Settlement" means the transfer of funds from a 57
customer's account to a seller or merchant upon electronic 58
submission of finalized sales transactions to the payment card 59
network. 60
(h) "Tax" means all taxes and fees levied under s. 61
125.0104 and chapter 212. 62
(2) The amount of tax listed separately on the payment 63
invoice, sales slip, or other evidence of sale must be excluded 64
from the amount on which an interchange fee is charged for that 65
electronic payment transaction. 66
(3) A payment card network shall either: 67
(a) Deduct the amount of tax imposed from the calcu lation 68
of interchange fees specific to each form or type of electronic 69
payment transaction; or 70
(b) Rebate an amount of interchange fee proportionate to 71
the amount attributable to the tax. 72
(4) The deduction or rebate must occur at the time of 73
settlement when the merchant or seller is able to capture and 74
transmit tax amounts relevant to the sale at the time of sale as 75
CS/HB 677 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0677-01-c1
Page 4 of 4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
part of the transaction finalization. 76
(5) If a merchant or seller is unable to capture and 77
transmit tax amounts relevant to the sale at t he time of sale, 78
the merchant or seller shall have 180 days to submit proof of 79
tax amounts or sales data to the payment card network. Such 80
proof may include tax returns filed with the Department of 81
Revenue or local taxing authorities. The payment card netw ork 82
shall proportionally rebate the amount of interchange fee to the 83
merchant or seller or credit the merchant's or seller's 84
settlement account within 30 days. 85
(6) A payment card network that violates this section is 86
subject to a civil penalty of up to $ 1,000 per violation and 87
shall refund the surcharge to each merchant or seller. 88
Section 2. This act shall take effect October 1, 2023. 89