FL
Florida House Bill H0677

Florida 2023 Regular Session

Florida House Bill H0677 Compare Versions

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1010 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
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1414 A bill to be entitled 1
15-An act relating to electronic payment transactions; 2
16-creating s. 501.0119, F.S.; defining terms; providing 3
17-nonapplicability; providing construction; prohibiting 4
18-certain entities from receiving and charging merchants 5
19-interchange fees on tax and tip amounts of electronic 6
20-payment transactions under certain circumstances; 7
21-requiring merchants to transmit certain data for 8
22-interchange fees credits; authorizing certain 9
23-merchants to submit certain documentation and data 10
24-within a specified timeframe; requiring issuers to 11
25-credit merchants certain interchange fees within a 12
26-specified timeframe under certain circumstances; 13
27-providing civil penalties; prohibiting certain 14
28-entities from distributing, exchanging, transferring, 15
29-disseminating, and using electronic payment 16
30-transaction data; providing exceptions; providing 17
31-violations and enforcement; providing entitlement to 18
32-attorney fees and costs under certain circumstances; 19
33-providing an effective date. 20
34- 21
35-Be It Enacted by the Legislature of the State of Florida: 22
36- 23
37- Section 1. Section 501.0119, Florida Statutes, is created 24
38-to read: 25
15+An act relating to interchange fees on taxes; creating 2
16+s. 655.969, F.S.; defining terms; requiring that 3
17+certain taxes listed on evidences of sales must be 4
18+excluded from the amount on which an interchange fee 5
19+is charged for that electronic payment transaction; 6
20+specifying requirements for payment card networks in 7
21+deducting taxes or rebating amounts; requiring 8
22+merchants and sellers to provide to payment card 9
23+networks proof of certain tax amounts or sales data 10
24+within a specified timeframe under certain 11
25+circumstances; specifying requirements for payment 12
26+card networks if a merchant or seller is unable to 13
27+capture and transmit tax amounts relevant to the sale 14
28+at the time of sale; providing a penalty; providing an 15
29+effective date. 16
30+ 17
31+Be It Enacted by the Legislature of the State of Florida: 18
32+ 19
33+ Section 1. Section 655.969, Florida Statutes, is created 20
34+to read: 21
35+ 655.969 Interchange fees on taxes prohibited. — 22
36+ (1) As used in this section, the term: 23
37+ (a) "Credit card" means a card, plate, coupon book, or 24
38+other credit device existing for the purpose of obtaining money, 25
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4747 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
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51- 501.0119 Restrictions on electronic payment transactions. — 26
52- (1) As used in this section, the term: 27
53- (a) "Acquirer bank" means a member of a payment card 28
54-network which contracts with a merchant for the settlement of 29
55-electronic payment transactions. An acquirer bank may contract 30
56-directly with merchants or indirectly through a processor to 31
57-process electronic payment transactions. 32
58- (b) "Authorization" means the process through which a 33
59-merchant requests approval for an electronic payment transaction 34
60-from the issuer. 35
61- (c) "Clearance" means the process of transmitting final 36
62-transaction data from a merchant to an issuer for posting to the 37
63-cardholder's account and the calculation of fees and charges, 38
64-including interchange fees, which apply to the issuer and 39
65-merchant. 40
66- (d) "Credit card" means a card, plate, coupon book, or 41
67-other credit device existing for the pu rpose of obtaining money, 42
68-property, labor, or services on credit. 43
69- (e) "Debit card": 44
70- 1. Means a card, or other payment code or device, issued 45
71-or approved for use through a payment card network to debit a 46
72-deposit account, regardless of the purpose for wh ich the account 47
73-is established, whether authorization is based on a signature, a 48
74-personal identification number, or other means; 49
75- 2. Includes a general -use prepaid card, as defined in 15 50
51+property, labor, or services on credit. 26
52+ (b) "Debit card": 27
53+ 1. Means a card, or other payment code o r device, issued 28
54+or approved for use through a payment card network to debit an 29
55+asset account, regardless of the purpose for which the account 30
56+is established, whether authorization is based on signature, 31
57+personal identification number, or other means; 32
58+ 2. Includes a general-use prepaid card as defined in 15 33
59+U.S.C. s. 1693l-1; and 34
60+ 3. Excludes paper checks. 35
61+ (c) "Electronic payment transaction" means a transaction 36
62+in which a person uses a debit card, credit card, or other 37
63+payment code or device, issued or approved through a payment 38
64+card network, to debit a deposit account or use a line of 39
65+credit, whether authorization is based on a signature, personal 40
66+identification number, or other means. 41
67+ (d) "Interchange fee" means a fee established, charged, or 42
68+received by a payment card network for the purpose of 43
69+compensating the issuer for its involvement in an electronic 44
70+payment transaction. 45
71+ (e) "Issuer" means a person, or the person's agent, 46
72+issuing a debit card or credit card. 47
73+ (f) "Payment card network" means an entity that: 48
74+ 1. Directly or through licensed members, processors, or 49
75+agents, provides the proprietary services, infrastructure, and 50
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88-U.S.C. s. 1693l-1; and 51
89- 3. Excludes paper checks. 52
90- (f) "Electronic payment transaction" means a transaction 53
91-in which a person uses a debit card, credit card, or other 54
92-payment code or device issued or approved through a payment card 55
93-network to debit a deposit account or use a line of credit, 56
94-whether authorization is based on a signature, a personal 57
95-identification number, or other means. 58
96- (g) "Interchange fee" means a fee established, charged, or 59
97-received by a payment card network for the purpose of 60
98-compensating the issuer for its involvement in an electronic 61
99-payment transaction. 62
100- (h) "Issuer" means a person issuing a debit card or credit 63
101-card or an agent of such a person. 64
102- (i) "Merchant" has the same meaning as the term "dealer" 65
103-in s. 212.06(2). 66
104- (j) "Payment card network" means an entity: 67
105- 1. That directly or through licensed members, processors, 68
106-or agents provides the proprietary services, infrastructure, and 69
107-software that route information and data to conduct electronic 70
108-payment transaction authorization, clearance, and settlement; 71
109-and 72
110- 2. That a merchant uses to acc ept as a form of payment a 73
111-brand of debit card, credit card, or other payment code or 74
112-device that may be used to carry out electronic payment 75
88+software that routes information and data to conduct electronic 51
89+payment transaction authorization, clearance, and settl ement; 52
90+and 53
91+ 2. A merchant or seller uses to accept as a form of 54
92+payment a brand of debit card, credit card, or other device that 55
93+may be used to carry out electronic payment transactions. 56
94+ (g) "Settlement" means the transfer of funds from a 57
95+customer's account to a seller or merchant upon electronic 58
96+submission of finalized sales transactions to the payment card 59
97+network. 60
98+ (h) "Tax" means all taxes and fees levied under s. 61
99+125.0104 and chapter 212. 62
100+ (2) The amount of tax listed separately on the payment 63
101+invoice, sales slip, or other evidence of sale must be excluded 64
102+from the amount on which an interchange fee is charged for that 65
103+electronic payment transaction. 66
104+ (3) A payment card network shall either: 67
105+ (a) Deduct the amount of tax imposed from the calcu lation 68
106+of interchange fees specific to each form or type of electronic 69
107+payment transaction; or 70
108+ (b) Rebate an amount of interchange fee proportionate to 71
109+the amount attributable to the tax. 72
110+ (4) The deduction or rebate must occur at the time of 73
111+settlement when the merchant or seller is able to capture and 74
112+transmit tax amounts relevant to the sale at the time of sale as 75
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121121 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
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125-transactions. 76
126- (k) "Processor" means an entity that facilitates, 77
127-services, processes, or manages the debit or cre dit 78
128-authorization, billing, transfer, payment procedures, or 79
129-settlement with respect to any electronic payment transaction. 80
130- (l) "Settlement" means the process of transmitting sales 81
131-information to the issuing bank for collection and reimbursement 82
132-of funds to the merchant and calculating and reporting the net 83
133-transaction amount to the issuer and merchant for a cleared 84
134-electronic payment transaction. 85
135- (m) "Tax" means all taxes and fees levied under chapter 86
136-212 and s. 125.0104. 87
137- (n) "Tax documentation" mean s documentation sufficient for 88
138-the payment card network to determine the total amount of the 89
139-electronic payment transaction and the tax amount of such 90
140-transaction. Tax documentation may be related to a single 91
141-electronic payment transaction or multiple elec tronic payment 92
142-transactions aggregated over a period of time. Examples of tax 93
143-documentation include, but are not limited to, invoices, 94
144-receipts, journals, ledgers, and tax returns filed with the 95
145-Department of Revenue or local taxing authorities. 96
146- (o) "Tip" means a sum of money paid in addition to the 97
147-payment obligation for the good or service obtained, including, 98
148-but not limited to, a payment for the benefit of one or more 99
149-individuals who facilitate the provision of the good or service. 100
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158-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
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162- (2) This section does not apply to an electronic payment 101
163-transaction in which the tax or tip amount is not separately 102
164-stated on the consumer's payment invoice, sales slip, or other 103
165-evidence of sale as required under s. 212.07(2). 104
166- (3) This section does not create liabilit y for a payment 105
167-card network regarding the accuracy of the tax or tip data 106
168-reported by the merchant. 107
169- (4) Except as provided in subsection (2), an issuer, a 108
170-payment card network, an acquirer bank, a processor, or other 109
171-designated entity may not receive or charge the merchant any 110
172-interchange fees on the tax or tip amount of an electronic 111
173-payment transaction if the merchant informs the acquirer bank or 112
174-its designee of such tax or tip amount as part of the 113
175-authorization for the electronic payment transaction. A merchant 114
176-must transmit the tax or tip amount data as part of the 115
177-authorization to avoid being charged interchange fees on the tax 116
178-or tip amount of an electronic payment transaction. 117
179- (5) A merchant that does not transmit the tax or tip 118
180-amount data in accordance with subsection (4) may transmit tax 119
181-documentation or tip amount data for the electronic payment 120
182-transaction to the acquirer bank or its designee no later than 121
183-180 days after the date of the electronic payment transaction, 122
184-and, within 30 days, th e issuer must credit to the merchant the 123
185-amount of interchange fees charged on the tax or tip amount of 124
186-the electronic payment transaction. 125
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199- (6) An issuer, a payment card network, an acquirer bank, a 126
200-processor, or other designated entity that has received the tax 127
201-or tip amount data and violates this section is subject to a 128
202-civil penalty of $1,000 per electronic payment transaction, and 129
203-the issuer must refund the merchant the amount of interchange 130
204-fees charged on the tax or tip amount of the electronic paym ent 131
205-transaction. 132
206- (7) An entity, other than the merchant, involved in 133
207-facilitating or processing an electronic payment transaction, 134
208-including, but not limited to, an issuer, a payment card 135
209-network, an acquirer bank, a processor, or other designated 136
210-entity, may not distribute, exchange, transfer, disseminate, or 137
211-use the electronic payment transaction data except to facilitate 138
212-or process the electronic payment transaction or as required by 139
213-law. A violation of this subsection constitutes a violation of 140
214-the Florida Deceptive and Unfair Trade Practices Act under part 141
215-II of this chapter. Notwithstanding s. 501.211, a violation of 142
216-this subsection must be enforced only by the enforcing 143
217-authority, as defined in s. 501.203(2), and subject the violator 144
218-to the sanctions and penalties provided for in part II of this 145
219-chapter. If such action is successful, the enforcing authority 146
220-is entitled to reasonable attorney fees and costs. 147
221- Section 2. This act shall take effect October 1, 2023. 148
125+part of the transaction finalization. 76
126+ (5) If a merchant or seller is unable to capture and 77
127+transmit tax amounts relevant to the sale at t he time of sale, 78
128+the merchant or seller shall have 180 days to submit proof of 79
129+tax amounts or sales data to the payment card network. Such 80
130+proof may include tax returns filed with the Department of 81
131+Revenue or local taxing authorities. The payment card netw ork 82
132+shall proportionally rebate the amount of interchange fee to the 83
133+merchant or seller or credit the merchant's or seller's 84
134+settlement account within 30 days. 85
135+ (6) A payment card network that violates this section is 86
136+subject to a civil penalty of up to $ 1,000 per violation and 87
137+shall refund the surcharge to each merchant or seller. 88
138+ Section 2. This act shall take effect October 1, 2023. 89