California AB1065 aims to prevent interchange fees on tax amounts in credit card transactions.

California AB1065, the Consumer Inflation Reduction and Tax Fairness Act, seeks to prevent interchange fees on the tax portion of credit card transactions. It prohibits issuers, payment card networks, acquirer banks, and processors from charging merchants interchange fees on the tax amount if the merchant informs the acquirer bank or its designee of the tax amount during the authorization or settlement process. Merchants can submit tax documentation within 180 days if they fail to transmit the tax amount data initially.

California AB1065 aims to prevent interchange fees on tax amounts in credit card transactions.

California AB1065, the Consumer Inflation Reduction and Tax Fairness Act, seeks to prevent interchange fees on the tax portion of credit card transactions. It prohibits issuers, payment card networks, acquirer banks, and processors from charging merchants interchange fees on the tax amount if the merchant informs the acquirer bank or its designee of the tax amount during the authorization or settlement process. Merchants can submit tax documentation within 180 days if they fail to transmit the tax amount data initially.