HB2089

Kansas HB2089 exempts tax and gratuity amounts from credit card transaction fees.

Kansas HB2089, known as the Consumer Inflation Reduction and Tax Fairness Act, prohibits card issuers, payment card networks, acquirer banks, and processors from charging interchange fees on the tax or gratuity portion of credit card transactions. Merchants must inform the acquirer bank or its designee of the tax or gratuity amount during the authorization or settlement process to avoid being charged these fees. If a merchant fails to transmit this data, they may submit tax documentation within 180 days to receive a credit for the interchange fee.