Florida Senate - 2023                              CS for SB 564
       By the Committee on Banking and Insurance; and Senator Hutson
       597-02621-23                                           2023564c1
    1                        A bill to be entitled                      
    2         An act relating to interchange fees on taxes; creating
    3         s. 501.0119, F.S.; defining terms; providing
    4         applicability; prohibiting issuers, payment card
    5         networks, acquirer banks, and processors from
    6         receiving or charging merchants interchange fees on
    7         the tax amounts of electronic payment transactions if
    8         the merchant provides certain information in a
    9         specified manner; requiring an issuer to credit a
   10         merchant the amount of interchange fees on taxes
   11         within a certain timeframe if the merchant meets
   12         certain conditions; providing a civil penalty;
   13         providing an effective date.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Section 501.0119, Florida Statutes, is created
   18  to read:
   19         501.0119Interchange fees on taxes prohibited.—
   20         (1)As used in this section, the term:
   21         (a)“Acquirer bank” means a member of a payment card
   22  network which contracts with a merchant for the settlement of
   23  electronic payment transactions. An acquirer bank may contract
   24  directly with merchants or indirectly through a processor to
   25  process electronic payment transactions.
   26         (b)“Clearance” means the process of transmitting final
   27  transaction data from a merchant to an issuer for posting to the
   28  cardholder’s account and the calculation of fees and charges,
   29  including interchange fees, which apply to the issuer and
   30  merchant.
   31         (c)“Credit card” means a card, plate, coupon book, or
   32  other credit device existing for the purpose of obtaining money,
   33  property, labor, or services on credit.
   34         (d)“Debit card”:
   35         1.Means a card, or other payment code or device, issued or
   36  approved for use through a payment card network to debit an
   37  asset account, regardless of the purpose for which the account
   38  is established, whether authorization is based on a signature, a
   39  personal identification number, or other means;
   40         2.Includes a general-use prepaid card, as defined in 15
   41  U.S.C. s. 1693l-1; and
   42         3.Excludes paper checks.
   43         (e)“Electronic payment transaction” means a transaction in
   44  which a person uses a debit card, credit card, or other payment
   45  code or device issued or approved through a payment card network
   46  to debit a deposit account or use a line of credit, whether
   47  authorization is based on a signature, a personal identification
   48  number, or other means.
   49         (f)Interchange fee” means a fee established, charged, or
   50  received by a payment card network for the purpose of
   51  compensating the issuer for its involvement in an electronic
   52  payment transaction.
   53         (g)Issuer” means a person issuing a debit card or credit
   54  card or the issuer’s agent.
   55         (h)“Merchant” has the same meaning as the term dealer in
   56  s. 212.06(2).
   57         (i)“Payment card network” means an entity:
   58         1.That directly or through licensed members, processors,
   59  or agents provides the proprietary services, infrastructure, and
   60  software that routes information and data to conduct electronic
   61  payment transaction authorization, clearance, and settlement;
   62  and
   63         2.That a merchant uses to accept as a form of payment a
   64  brand of debit card, credit card, or other device that may be
   65  used to carry out electronic payment transactions.
   66         (j)“Processor” means an entity that facilitates, services,
   67  processes, or manages the debit or credit authorization,
   68  billing, transfer, payment procedures, or settlement with
   69  respect to any electronic payment transaction.
   70         (k)Settlement” means the process of transmitting sales
   71  information to the issuing bank for collection and reimbursement
   72  of funds to the merchant and calculating and reporting the net
   73  transaction amount to the issuer and merchant for an electronic
   74  payment transaction that is cleared.
   75         (l)“Tax” means all taxes and fees levied under chapter 212
   76  and s. 125.0104.
   77         (m)“Tax documentation” means documentation sufficient for
   78  the payment card network to determine the total amount of the
   79  electronic payment transaction and the tax amount of such
   80  transaction. Tax documentation may be related to a single
   81  electronic payment transaction or multiple electronic payment
   82  transactions aggregated over a period of time. Examples of tax
   83  documentation include, but are not limited to, invoices,
   84  receipts, journals, ledgers, and tax returns filed with the
   85  Department of Revenue or local taxing authorities.
   86         (2)This section does not apply to an electronic payment
   87  transaction in which the tax amount is not separately stated on
   88  the consumer’s payment invoice, sales slip, or other evidence of
   89  sale as required under s. 212.07(2).
   90         (3)Except as provided in subsection (2), an issuer, a
   91  payment card network, an acquirer bank, or a processor may not
   92  receive or charge the merchant any interchange fees on the tax
   93  amount of an electronic payment transaction if the merchant
   94  informs the acquirer bank, its designee, or any other entity as
   95  provided in the payment card network’s terms and conditions of
   96  service of such tax amount as part of the clearance process for
   97  the electronic payment transaction. A merchant must transmit the
   98  tax amount data as part of the clearance process to avoid being
   99  charged interchange fees on the tax amount of an electronic
  100  payment transaction.
  101         (4)A merchant that does not transmit the tax amount data
  102  in accordance with subsection (3) may submit tax documentation
  103  for the electronic payment transaction to the acquirer bank, its
  104  designee, or any other entity as provided in the payment card
  105  network’s terms and conditions of service no later than 180 days
  106  after the date of the electronic payment transaction, and within
  107  30 days, the issuer must credit to the merchant the amount of
  108  interchange fees charged on the tax amount of the electronic
  109  payment transaction.
  110         (5)An issuer, a payment card network, an acquirer bank, a
  111  processor, or other designated entity that has received the tax
  112  amount data and violates this section is subject to a civil
  113  penalty of $1,000 per electronic payment transaction, and the
  114  issuer must refund the merchant the interchange fee calculated
  115  on the tax amount relative to the electronic payment
  116  transaction.
  117         Section 2. This act shall take effect October 1, 2023.