Texas HB4124 mandates exclusion of state or local taxes and gratuities from swipe fees on electronic payment transactions and authorizes civil.

Texas HB4124 amends the Business & Commerce Code to introduce new rules for swipe fees on electronic payment transactions. It requires payment card networks to either deduct state or local taxes and gratuities from swipe fees at the time of settlement or rebate the merchant an equivalent amount. If merchants cannot capture and transmit tax and gratuity amounts at the time of sale, payment card networks must accept proof of these amounts from merchants and provide the rebate within 180 days. The bill also prohibits payment card issuers from altering swipe fees to circumvent these provisions.

Texas HB4124 mandates exclusion of state or local taxes and gratuities from swipe fees on electronic payment transactions and authorizes civil.

Texas HB4124 amends the Business & Commerce Code to introduce new rules for swipe fees on electronic payment transactions. It requires payment card networks to either deduct state or local taxes and gratuities from swipe fees at the time of settlement or rebate the merchant an equivalent amount. If merchants cannot capture and transmit tax and gratuity amounts at the time of sale, payment card networks must accept proof of these amounts from merchants and provide the rebate within 180 days. The bill also prohibits payment card issuers from altering swipe fees to circumvent these provisions.