SB 412

Bill Subjects

Civil Law And Procedure; Liabilities, Damages, And Penalties Financial Services; Financial Institutions Retail Merchants State Elected Officials; Attorney General Taxes; Deductions Taxes; Generally Trade Regulations; Consumer Credit And Consumer Protection (Including The Uniform Consumer Credit Code (Uccc))

Abstract

Defines an "interchange fee" as a fee established, charged, or received by a payment card network to compensate an issuer of a debit card or credit card for the issuer's involvement in an electronic payment transaction. Provides that the amount of: (1) certain taxes (covered taxes) collected by; and (2) any gratuity paid to; a merchant in an electronic payment transaction must be excluded from the amount upon which any interchange fee is charged in connection with the electronic payment transaction. Requires a payment card network to do one of the following: (1) At the time of settlement of an electronic payment transaction, deduct from the calculation of any interchange fees to be imposed for the transaction the amount of any: (A) covered tax collected; and (B) gratuity paid; in the electronic payment transaction. (2) Rebate a portion of the interchange fee imposed in the transaction in an amount equal to the amount of the interchange fee attributable to any: (A) covered tax collected; and (B) gratuity paid; in the electronic payment transaction. Provides that the required deduction or rebate must occur at the time of settlement when the merchant is able to capture and transmit tax and gratuity amounts relevant to the electronic payment transaction at the time of the transaction. Provides an exception allowing a payment card network to credit a merchant's settlement account for interchange fees collected on amounts that included covered taxes or gratuities, in cases in which a merchant is not able to capture and transmit tax or gratuity amounts relevant to the electronic payment transaction at the time of the transaction. Provides that a payment card network that violates these provisions: (1) is liable for a civil penalty in an amount not to exceed $1,000 per violation; and (2) shall refund to each merchant affected by the violation the amount of excess interchange fees collected. Provides that a payment card network that alters or manipulates the computation or imposition of an interchange fee for purposes of circumventing or offsetting the bill's requirements commits a deceptive act that is actionable only by the attorney general under the Indiana statute concerning deceptive consumer sales.