Rhode Island H7607 prohibits swipe fees on taxes and gratuities, effective January 1, 2027.

Rhode Island H7607 amends the General Laws to prohibit the charging of swipe fees on taxes and gratuities. This act mandates that payment card networks either deduct the amount of state or local tax and gratuity from the calculation of swipe fees at the time of settlement or rebate the merchant an equivalent amount. The act also outlines penalties for violations, including a civil penalty of up to $1,000 and the requirement to refund any swipe fees charged in violation of the act. The changes will take effect on January 1, 2027.

Rhode Island H7607 prohibits swipe fees on taxes and gratuities, effective January 1, 2027.

Rhode Island H7607 amends the General Laws to prohibit the charging of swipe fees on taxes and gratuities. This act mandates that payment card networks either deduct the amount of state or local tax and gratuity from the calculation of swipe fees at the time of settlement or rebate the merchant an equivalent amount. The act also outlines penalties for violations, including a civil penalty of up to $1,000 and the requirement to refund any swipe fees charged in violation of the act. The changes will take effect on January 1, 2027.