Florida Senate - 2023                                     SB 564
       By Senator Hutson
       7-01566-23                                             2023564__
    1                        A bill to be entitled                      
    2         An act relating to interchange fees on taxes; creating
    3         s. 655.969, F.S.; defining terms; requiring that
    4         certain taxes listed on evidences of sales must be
    5         excluded from the amount on which an interchange fee
    6         is charged for that electronic payment transaction;
    7         specifying requirements for payment card networks in
    8         deducting taxes or rebating amounts; specifying
    9         requirements for payment card networks if a merchant
   10         or seller is unable to capture and transmit tax
   11         amounts relevant to the sale at the time of sale;
   12         providing a penalty; providing an effective date.
   14  Be It Enacted by the Legislature of the State of Florida:
   16         Section 1. Section 655.969, Florida Statutes, is created to
   17  read:
   18         655.969Interchange fees on taxes prohibited.—
   19         (1)As used in this section, the term:
   20         (a)“Credit card” means a card, plate, coupon book, or
   21  other credit device existing for the purpose of obtaining money,
   22  property, labor, or services on credit.
   23         (b)“Debit card”:
   24         1.Means a card, or other payment code or device, issued or
   25  approved for use through a payment card network to debit an
   26  asset account, regardless of the purpose for which the account
   27  is established, whether authorization is based on signature,
   28  personal identification number, or other means;
   29         2.Includes a general-use prepaid card as defined in 15
   30  U.S.C. s. 1693l-1; and
   31         3.Excludes paper checks.
   32         (c)“Electronic payment transaction” means a transaction in
   33  which a person uses a debit card, credit card, or other payment
   34  code or device, issued or approved through a payment card
   35  network, to debit a deposit account or use a line of credit,
   36  whether authorization is based on a signature, personal
   37  identification number, or other means.
   38         (d)“Interchange fee” means a fee established, charged, or
   39  received by a payment card network for the purpose of
   40  compensating the issuer for its involvement in an electronic
   41  payment transaction.
   42         (e)“Issuer” means a person, or the person’s agent, issuing
   43  a debit card or credit card.
   44         (f)“Payment card network” means an entity that:
   45         1.Directly or through licensed members, processors, or
   46  agents, provides the proprietary services, infrastructure, and
   47  software that routes information and data to conduct debit card
   48  or credit card transaction authorization, clearance, and
   49  settlement; and
   50         2.A merchant or seller uses to accept as a form of payment
   51  a brand of debit card, credit card, or other device that may be
   52  used to carry out debit or credit transactions.
   53         (g)“Settlement” means the transfer of funds from a
   54  customer’s account to a seller or merchant upon electronic
   55  submission of finalized sales transactions to the payment card
   56  network.
   57         (h)“Tax” means all taxes and fees levied under chapters
   58  125 and 212.
   59         (2)The amount of tax listed separately on the payment
   60  invoice, sales slip, or other evidence of sale must be excluded
   61  from the amount on which an interchange fee is charged for that
   62  electronic payment transaction.
   63         (3)A payment card network shall either:
   64         (a)Deduct the amount of tax imposed from the calculation
   65  of interchange fees specific to each form or type of electronic
   66  payment transaction; or
   67         (b)Rebate an amount of interchange fees proportionate to
   68  the amount attributable to the tax.
   69         (4)The deduction or rebate must occur at the time of
   70  settlement when the merchant or seller is able to capture and
   71  transmit tax amounts relevant to the sale at the time of sale as
   72  part of the transaction finalization.
   73         (5)If a merchant or seller is unable to capture and
   74  transmit tax amounts relevant to the sale at the time of sale,
   75  the payment card network must accept proof of tax amounts
   76  collected on sales subject to an interchange fee upon the
   77  submission of sales data by the merchant or seller, and promptly
   78  credit the merchant or seller’s settlement account.
   79         (6)A payment card network that violates this section is
   80  subject to a civil penalty of up to $1,000 per violation and
   81  shall refund the surcharge to each merchant or seller.
   82         Section 2. This act shall take effect July 1, 2023.