Credit card interchange fees; defining terms; requiring certain taxes and fees be excluded from certain interchange fee charges. Effective date. Emergency.
If enacted, SB798 will change how payment card networks calculate interchange fees by mandating the exclusion of certain taxes from the transaction amounts considered for these fees. Specifically, this will include various taxes imposed under the Oklahoma Tax Code, such as sales tax on merchandise and services, hotel occupancy tax, and others. The bill also introduces penalties for non-compliance by payment card networks, which will be enforceable by the Attorney General. This legislative change will have implications for both merchants who accept card payments and consumers engaging in electronic transactions.
Senate Bill 798 addresses the issue of credit card interchange fees, specifically aiming to exclude state and local sales taxes that are applied during electronic payment transactions from the calculations of these fees. The bill delineates the definitions of terms related to credit and debit payments, and establishes guidelines for payment card networks regarding the handling of taxes and fees that merchants incur. The intent is to alleviate the financial burden on merchants by ensuring that interchange fees are not unfairly calculated based on amounts that include taxes.
The sentiment around SB798 appears to be supportive among business advocates who argue that the bill will reduce costs for merchants and promote fairer practices in payment processing. The unanimous vote in favor of the bill during committee considerations reflects a general consensus on the necessity of this legislation among the lawmakers involved in its review. However, there might be concerns raised by payment card networks regarding compliance and the implications of the proposed changes.
There was little notable contention during the discussions surrounding SB798, as the bill passed out of committee unanimously. However, some potential points of contention could arise in the enforcement of compliance with the penalty provisions for payment card networks. These aspects may pose challenges as stakeholders navigate the implications of the new requirements, as some may question how effectively penalties can be enforced and what adjustments payment networks will make in response to the changes mandated by the bill.