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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 electronic payment transactions; 2
creating s. 501.0119, F.S.; defining terms; providing 3
nonapplicability; providing construction; prohibiting 4
certain entities from receiving and charging merchants 5
interchange fees on tax and tip amounts of electronic 6
payment transactions under certain circumstances; 7
requiring merchants to transmit certain data for 8
interchange fees credits; authorizing certain 9
merchants to submit certain documentation and data 10
within a specified timeframe; requiring issuers to 11
credit merchants certain interchange fees within a 12
specified timeframe under certain circumstances; 13
providing civil penalties; prohibiting certain 14
entities from distributing, exchanging, transferring, 15
disseminating, and using electronic payment 16
transaction data; providing exceptions; providing 17
violations and enforcement; providing entitlement to 18
attorney fees and costs under certain circumstances; 19
providing an effective date. 20
21
Be It Enacted by the Legislature of the State of Florida: 22
23
Section 1. Section 501.0119, Florida Statutes, is created 24
to read: 25
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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
501.0119 Restrictions on electronic payment transactions. — 26
(1) As used in this section, the term: 27
(a) "Acquirer bank" means a member of a payment card 28
network which contracts with a merchant for the settlement of 29
electronic payment transactions. An acquirer bank may contract 30
directly with merchants or indirectly through a processor to 31
process electronic payment transactions. 32
(b) "Authorization" means the process through which a 33
merchant requests approval for an electronic payment transaction 34
from the issuer. 35
(c) "Clearance" means the process of transmitting final 36
transaction data from a merchant to an issuer for posting to the 37
cardholder's account and the calculation of fees and charges, 38
including interchange fees, which apply to the issuer and 39
merchant. 40
(d) "Credit card" means a card, plate, coupon book, or 41
other credit device existing for the pu rpose of obtaining money, 42
property, labor, or services on credit. 43
(e) "Debit card": 44
1. Means a card, or other payment code or device, issued 45
or approved for use through a payment card network to debit a 46
deposit account, regardless of the purpose for wh ich the account 47
is established, whether authorization is based on a signature, a 48
personal identification number, or other means; 49
2. Includes a general -use prepaid card, as defined in 15 50
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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
U.S.C. s. 1693l-1; and 51
3. Excludes paper checks. 52
(f) "Electronic payment transaction" means a transaction 53
in which a person uses a debit card, credit card, or other 54
payment code or device issued or approved through a payment card 55
network to debit a deposit account or use a line of credit, 56
whether authorization is based on a signature, a personal 57
identification number, or other means. 58
(g) "Interchange fee" means a fee established, charged, or 59
received by a payment card network for the purpose of 60
compensating the issuer for its involvement in an electronic 61
payment transaction. 62
(h) "Issuer" means a person issuing a debit card or credit 63
card or an agent of such a person. 64
(i) "Merchant" has the same meaning as the term "dealer" 65
in s. 212.06(2). 66
(j) "Payment card network" means an entity: 67
1. That directly or through licensed members, processors, 68
or agents provides the proprietary services, infrastructure, and 69
software that route information and data to conduct electronic 70
payment transaction authorization, clearance, and settlement; 71
and 72
2. That a merchant uses to acc ept as a form of payment a 73
brand of debit card, credit card, or other payment code or 74
device that may be used to carry out electronic payment 75
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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
transactions. 76
(k) "Processor" means an entity that facilitates, 77
services, processes, or manages the debit or cre dit 78
authorization, billing, transfer, payment procedures, or 79
settlement with respect to any electronic payment transaction. 80
(l) "Settlement" means the process of transmitting sales 81
information to the issuing bank for collection and reimbursement 82
of funds to the merchant and calculating and reporting the net 83
transaction amount to the issuer and merchant for a cleared 84
electronic payment transaction. 85
(m) "Tax" means all taxes and fees levied under chapter 86
212 and s. 125.0104. 87
(n) "Tax documentation" mean s documentation sufficient for 88
the payment card network to determine the total amount of the 89
electronic payment transaction and the tax amount of such 90
transaction. Tax documentation may be related to a single 91
electronic payment transaction or multiple elec tronic payment 92
transactions aggregated over a period of time. Examples of tax 93
documentation include, but are not limited to, invoices, 94
receipts, journals, ledgers, and tax returns filed with the 95
Department of Revenue or local taxing authorities. 96
(o) "Tip" means a sum of money paid in addition to the 97
payment obligation for the good or service obtained, including, 98
but not limited to, a payment for the benefit of one or more 99
individuals who facilitate the provision of the good or service. 100
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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
(2) This section does not apply to an electronic payment 101
transaction in which the tax or tip amount is not separately 102
stated on the consumer's payment invoice, sales slip, or other 103
evidence of sale as required under s. 212.07(2). 104
(3) This section does not create liabilit y for a payment 105
card network regarding the accuracy of the tax or tip data 106
reported by the merchant. 107
(4) Except as provided in subsection (2), an issuer, a 108
payment card network, an acquirer bank, a processor, or other 109
designated entity may not receive or charge the merchant any 110
interchange fees on the tax or tip amount of an electronic 111
payment transaction if the merchant informs the acquirer bank or 112
its designee of such tax or tip amount as part of the 113
authorization for the electronic payment transaction. A merchant 114
must transmit the tax or tip amount data as part of the 115
authorization to avoid being charged interchange fees on the tax 116
or tip amount of an electronic payment transaction. 117
(5) A merchant that does not transmit the tax or tip 118
amount data in accordance with subsection (4) may transmit tax 119
documentation or tip amount data for the electronic payment 120
transaction to the acquirer bank or its designee no later than 121
180 days after the date of the electronic payment transaction, 122
and, within 30 days, th e issuer must credit to the merchant the 123
amount of interchange fees charged on the tax or tip amount of 124
the electronic payment transaction. 125
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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
(6) An issuer, a payment card network, an acquirer bank, a 126
processor, or other designated entity that has received the tax 127
or tip amount data and violates this section is subject to a 128
civil penalty of $1,000 per electronic payment transaction, and 129
the issuer must refund the merchant the amount of interchange 130
fees charged on the tax or tip amount of the electronic paym ent 131
transaction. 132
(7) An entity, other than the merchant, involved in 133
facilitating or processing an electronic payment transaction, 134
including, but not limited to, an issuer, a payment card 135
network, an acquirer bank, a processor, or other designated 136
entity, may not distribute, exchange, transfer, disseminate, or 137
use the electronic payment transaction data except to facilitate 138
or process the electronic payment transaction or as required by 139
law. A violation of this subsection constitutes a violation of 140
the Florida Deceptive and Unfair Trade Practices Act under part 141
II of this chapter. Notwithstanding s. 501.211, a violation of 142
this subsection must be enforced only by the enforcing 143
authority, as defined in s. 501.203(2), and subject the violator 144
to the sanctions and penalties provided for in part II of this 145
chapter. If such action is successful, the enforcing authority 146
is entitled to reasonable attorney fees and costs. 147
Section 2. This act shall take effect October 1, 2023. 148