Iowa HSB324 excludes taxes from interchange fees on electronic payment transactions.

Iowa HSB324 mandates that payment card networks exclude taxes from interchange fees on electronic payment transactions. The bill defines "interchange fee" and "tax" to include various state taxes. It requires networks to deduct tax amounts from interchange fees at settlement or rebate the fee proportionate to the tax amount. If sellers cannot capture tax amounts at the time of sale, networks must accept proof of tax amounts and credit sellers' accounts. Violators face a $1,000 civil penalty per violation, with penalties deposited into the state's general fund.

Iowa HSB324 excludes taxes from interchange fees on electronic payment transactions.

Iowa HSB324 mandates that payment card networks exclude taxes from interchange fees on electronic payment transactions. The bill defines "interchange fee" and "tax" to include various state taxes. It requires networks to deduct tax amounts from interchange fees at settlement or rebate the fee proportionate to the tax amount. If sellers cannot capture tax amounts at the time of sale, networks must accept proof of tax amounts and credit sellers' accounts. Violators face a $1,000 civil penalty per violation, with penalties deposited into the state's general fund.