"Consumer Inflation Reduction and Tax Fairness Act"; enact
The bill is set to go into effect on January 1, 2024, and includes provisions for civil penalties against payment card networks that fail to comply with the new rules. With this legislative change, it is crucial for affected parties to understand the implications for their operations and the overall economic environment in Georgia.
The proposed amendments to Chapter 1 of Title 10 of the Official Code of Georgia Annotated will notably impact how payment card networks calculate interchange fees. Under the new provisions, payment card networks will be mandated to either exclude taxes from the calculation of interchange fees or refund the amount proportional to the taxes during transaction settlement. This is expected to provide financial relief to retailers who often face high costs associated with transaction fees, thereby potentially benefiting consumers through lower prices.
Senate Bill 126, known as the 'Consumer Inflation Reduction and Tax Fairness Act', introduces new regulations regarding interchange fees charged by payment card networks for credit and debit card transactions. The bill aims to protect retailers from excessive fees by limiting interchange fees to the purchase price of goods and services, which excludes applicable state and local taxes. This legislation is a significant move in the realm of consumer protection and business operations within the state of Georgia.
While the act is positioned as a consumer protection measure, there may be contention surrounding its implementation and the potential pushback from payment card networks which could lose revenue due to the new restrictions. Retailers and consumer advocacy groups may welcome this legislation as a necessary adjustment to create a fairer marketplace, but some stakeholders may argue that such regulations could lead to increased fees or stricter requirements placed on merchants.