Concerns certain fees for credit card usage during state of emergency.
Impact
If enacted, SB 599 would have a direct impact on the laws governing the fees that electronic payment systems can impose on merchants. This change aims to alleviate financial burdens specifically during periods when a public health emergency or state of emergency is declared. By providing a legal framework that prohibits charging higher manual entry fees at such times, the bill could encourage more businesses to accept credit card payments, minimizing disruptions in commerce during critical periods.
Summary
Senate Bill 599 seeks to address credit card transaction fees imposed by electronic payment systems on merchants during declared states of emergency. The bill specifically prohibits these systems from charging merchants a higher fee for manual entry of credit card transactions compared to electronic transactions. The intention behind this legislation is to protect businesses during emergencies by ensuring that the costs associated with accepting credit card payments remain manageable, thus supporting merchants as they navigate the challenges of operating in a crisis.
Contention
The bill may face challenges and debates regarding its scope and enforceability, particularly concerning how such fees are regulated under existing state laws. While proponents argue that the bill is essential for merchant survival during emergencies, opponents may raise concerns about the practicality of enforcing these prohibitions and their potential impact on electronic payment systems' revenue models. Additionally, there may be discussions about whether the bill adequately addresses the needs of all merchants or disproportionately benefits larger businesses that can absorb such costs more easily.
Credit card interchange fees; defining terms; requiring certain taxes and fees be excluded from certain interchange fee charges. Effective date. Emergency.
Relating to credit and debit card fees; to provide that the calculation of any credit or debit card swipe fee may not include taxes and fees added on to the price of the goods or services purchased by the credit or debit card.
Enacting the consumer inflation reduction and tax fairness act and exempting the portion of a credit card transaction constituting a tax or gratuity from assessment of the fee charged by the card issuer.