Bill Text: TX SB1541 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the charging of swipe fees on certain electronic payment transactions; authorizing a civil penalty.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-16 - Referred to Business & Commerce [SB1541 Detail]
Download: Texas-2023-SB1541-Introduced.html
88R7089 SRA-F | ||
By: Parker | S.B. No. 1541 |
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relating to the charging of swipe fees on certain electronic | ||
payment transactions; authorizing a civil penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 12, Business & Commerce Code, is amended by | ||
adding Chapter 610 to read as follows: | ||
CHAPTER 610. CHARGING OF SWIPE FEES | ||
Sec. 610.001. DEFINITIONS. In this chapter: | ||
(1) "Assessment fee" means a fee, usually based on the | ||
total amount of monthly sales, paid directly to the payment card | ||
network for allowing a merchant to use a payment card or other | ||
payment code or device in an electronic payment transaction. | ||
(2) "Electronic payment transaction" means a | ||
transaction in which a person uses a payment card or other payment | ||
code or device issued or approved through a payment card network to | ||
debit a deposit account or use a line of credit, whether | ||
authorization is based on a signature, personal identification | ||
number, or other means. | ||
(3) "Interchange fee" means a fee charged to a | ||
merchant for the purpose of compensating the payment card issuer | ||
for the issuer's involvement in an electronic payment transaction. | ||
(4) "Payment card" means a credit card, debit card, | ||
check card, or other card that is issued to an authorized user to | ||
purchase or obtain goods, services, money, or any other thing of | ||
value. | ||
(5) "Payment card issuer" means a lender, including a | ||
financial institution, or a merchant that receives applications and | ||
issues payment cards to individuals. | ||
(6) "Payment card network" means an entity that | ||
directly, or through a licensed member, processor, or agent, | ||
provides the proprietary services, infrastructure, and software | ||
that route information and data to conduct debit card or credit card | ||
transaction authorization, clearance, and settlement, and that an | ||
entity uses in order to accept as a form of payment a brand of debit | ||
card, credit card, or other device that may be used to carry out | ||
debit or credit transactions. | ||
(7) "State or local tax" includes a tax imposed by this | ||
state or a unit of local government of this state, including the | ||
sales, excise, and use tax, motor fuels tax, hotel occupancy tax, | ||
and the tax imposed on the rental of a motor vehicle, other than a | ||
tax returned to a taxpayer in the form of a deduction or discount | ||
under Section 151.423 or 151.424, Tax Code. | ||
(8) "Swipe fee" means the interchange fee and, if | ||
applicable, the assessment fee. | ||
Sec. 610.002. EXCLUSION OF STATE OR LOCAL TAXES FROM SWIPE | ||
FEES; MERCHANT DEDUCTION OR REBATE. (a) The amount of state or | ||
local tax that is calculated as a percentage of the amount of an | ||
electronic payment transaction made in this state and listed | ||
separately on a payment invoice or other demand for payment must be | ||
excluded from the total amount on which a swipe fee is charged for | ||
that transaction. | ||
(b) A payment card network shall with respect to each form | ||
or type of electronic payment transaction: | ||
(1) deduct the amount of state or local tax imposed | ||
from the calculation of swipe fees attributable to the transaction | ||
at the time of settlement; or | ||
(2) rebate the merchant an amount equal to the amount | ||
of swipe fees attributable to the state or local tax imposed on the | ||
transaction. | ||
(c) A deduction or rebate under this section must occur at | ||
the time of settlement when the merchant is able to capture and | ||
transmit state or local tax or fee amounts relevant to the sale at | ||
the time of sale as part of the transaction finalization. If a | ||
merchant is unable to capture and transmit tax or fee amounts | ||
relevant to the sale at the time of sale, then the payment card | ||
network must accept proof of tax or fee amounts collected on sales | ||
subject to a swipe fee on the submission of sales data by the | ||
merchant. | ||
Sec. 610.003. CIVIL PENALTY; RESTITUTION. (a) A person who | ||
violates this chapter is liable to this state for a civil penalty in | ||
an amount not to exceed $1,000 for each violation. | ||
(b) The attorney general may bring an action to: | ||
(1) recover the civil penalty imposed under this | ||
section; or | ||
(2) obtain a temporary or permanent injunction to | ||
restrain the violation. | ||
(c) An action under this section may be brought in a | ||
district court in: | ||
(1) Travis County; or | ||
(2) a county in which any part of the violation occurs. | ||
(d) The attorney general shall deposit a civil penalty | ||
collected under this section in the state treasury to the credit of | ||
the general revenue fund. | ||
(e) A person who violates this chapter shall refund a | ||
merchant any swipe fees charged in violation of this chapter. | ||
SECTION 2. This Act takes effect September 1, 2023. |