Florida Senate - 2023                       CS for CS for SB 564
       By the Committees on Commerce and Tourism; and Banking and
       Insurance; and Senator Hutson
       577-03479-23                                           2023564c2
    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)“Authorization” means the process through which a
   27  merchant requests approval for an electronic payment transaction
   28  from the issuer.
   29         (c)“Clearance” means the process of transmitting final
   30  transaction data from a merchant to an issuer for posting to the
   31  cardholder’s account and the calculation of fees and charges,
   32  including interchange fees, which apply to the issuer and
   33  merchant.
   34         (d)“Credit card” means a card, plate, coupon book, or
   35  other credit device existing for the purpose of obtaining money,
   36  property, labor, or services on credit.
   37         (e)“Debit card”:
   38         1.Means a card, or other payment code or device, issued or
   39  approved for use through a payment card network to debit an
   40  asset account, regardless of the purpose for which the account
   41  is established, whether authorization is based on a signature, a
   42  personal identification number, or other means;
   43         2.Includes a general-use prepaid card, as defined in 15
   44  U.S.C. s. 1693l-1; and
   45         3.Excludes paper checks.
   46         (f)“Electronic payment transaction” means a transaction in
   47  which a person uses a debit card, credit card, or other payment
   48  code or device issued or approved through a payment card network
   49  to debit a deposit account or use a line of credit, whether
   50  authorization is based on a signature, a personal identification
   51  number, or other means.
   52         (g)Interchange fee” means a fee established, charged, or
   53  received by a payment card network for the purpose of
   54  compensating the issuer for its involvement in an electronic
   55  payment transaction.
   56         (h)Issuer” means a person issuing a debit card or credit
   57  card or the issuer’s agent.
   58         (i)“Merchant” has the same meaning as the term dealer in
   59  s. 212.06(2).
   60         (j)“Payment card network” means an entity:
   61         1.That directly or through licensed members, processors,
   62  or agents provides the proprietary services, infrastructure, and
   63  software that route information and data to conduct electronic
   64  payment transaction authorization, clearance, and settlement;
   65  and
   66         2.That a merchant uses to accept as a form of payment a
   67  brand of debit card, credit card, or other device that may be
   68  used to carry out electronic payment transactions.
   69         (k)“Processor” means an entity that facilitates, services,
   70  processes, or manages the debit or credit authorization,
   71  billing, transfer, payment procedures, or settlement with
   72  respect to any electronic payment transaction.
   73         (l)Settlement” means the process of transmitting sales
   74  information to the issuing bank for collection and reimbursement
   75  of funds to the merchant and calculating and reporting the net
   76  transaction amount to the issuer and merchant for an electronic
   77  payment transaction that is cleared.
   78         (m)“Tax” means all taxes and fees levied under chapter 212
   79  and s. 125.0104.
   80         (n)“Tax documentation” means documentation sufficient for
   81  the payment card network to determine the total amount of the
   82  electronic payment transaction and the tax amount of such
   83  transaction. Tax documentation may be related to a single
   84  electronic payment transaction or multiple electronic payment
   85  transactions aggregated over a period of time. Examples of tax
   86  documentation include, but are not limited to, invoices,
   87  receipts, journals, ledgers, and tax returns filed with the
   88  Department of Revenue or local taxing authorities.
   89         (2)This section does not apply to an electronic payment
   90  transaction in which the tax amount is not separately stated on
   91  the consumer’s payment invoice, sales slip, or other evidence of
   92  sale as required under s. 212.07(2).
   93         (3)Except as provided in subsection (2), an issuer, a
   94  payment card network, an acquirer bank, or a processor may not
   95  receive or charge the merchant any interchange fees on the tax
   96  amount of an electronic payment transaction if the merchant
   97  informs the acquirer bank or its designee of such tax amount as
   98  part of the authorization process for the electronic payment
   99  transaction. A merchant must transmit the tax amount data as
  100  part of the authorization process to avoid being charged
  101  interchange fees on the tax amount of an electronic payment
  102  transaction.
  103         (4)A merchant that does not transmit the tax amount data
  104  in accordance with subsection (3) may submit tax documentation
  105  for the electronic payment transaction to the acquirer bank or
  106  its designee no later than 180 days after the date of the
  107  electronic payment transaction, and within 30 days, the issuer
  108  must credit to the merchant the amount of interchange fees
  109  charged on the tax amount of the electronic 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.