Massachusetts S688 prohibits card interchange fees on tax or gratuity.

Massachusetts S688 amends Chapter 140D of the General Laws to prohibit card interchange fees on tax or gratuity. It mandates that merchants inform acquirer banks or their designees of the tax or gratuity amount during the authorization or settlement process to avoid being charged interchange fees on these amounts. The bill defines key terms such as "tax," "gratuity," and "interchange fee." It also imposes a civil penalty of $1,000 per transaction on entities that violate these provisions and requires issuers to refund the merchant the interchange fee calculated on the tax or gratuity amount.

Massachusetts S688 prohibits card interchange fees on tax or gratuity.

Massachusetts S688 amends Chapter 140D of the General Laws to prohibit card interchange fees on tax or gratuity. It mandates that merchants inform acquirer banks or their designees of the tax or gratuity amount during the authorization or settlement process to avoid being charged interchange fees on these amounts. The bill defines key terms such as "tax," "gratuity," and "interchange fee." It also imposes a civil penalty of $1,000 per transaction on entities that violate these provisions and requires issuers to refund the merchant the interchange fee calculated on the tax or gratuity amount.