Payment Card Networks' Fees

The bill states that a payment card network, which is an entity that routes information and data for electronic payment transactions, whether directly or indirectly, shall not:

• Establish, charge, or include in a fee schedule an interchange fee if:
• The interchange fee is or includes a percentage multiplied by the gross dollar amount of a transaction conducted with a debit card or credit card; and
• The fee does not exclude from the gross dollar amount of the transaction any amount attributable to a tax on the transaction; or
• Increase the rate or amount of fees that apply to the nontax portion of a transaction in an attempt to, or in a manner that would, circumvent the aforementioned prohibition.

The bill exempts electronic payment transactions involving a debit card or credit card issued by a person, or agent of a person, that issues a debit card or credit card to a cardholder (issuer) that:

• Did not, during any point in the previous calendar year, hold consolidated worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets under management, of more than $60 billion; or
• As of February 1, 2026, had contracted to brand the card with the brand of a financial institution chartered or authorized to do business in this state that did not, during any point in the previous calendar year, hold consolidated worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets under management, of more than $60 billion.

An issuer that satisfies either of these exemption descriptions must identify to a payment card network all of the issuer's debit cards and credit cards that are used for exempted transactions, and the payment card network shall not, whether directly or indirectly through an agent, contract, requirement, condition, penalty, technological specification, or inducement or otherwise:

• Deny such a card access to transaction processing systems; or
• Impose any fee increase or penalty on the issuer or on a financial institution branded on the card for any costs of upgrades or configurations to payment and processing systems that may be necessary to comply with the bill with respect to such cards.

A payment card network is deemed to be in compliance with the requirements of the bill if the payment card network satisfies certain conditions.

If a payment card network violates the bill's prohibitions, a merchant, consumer, or other person that is injured as a result of the violation may bring a civil action against the payment card network. The bill sets forth the penalties to be awarded in such an action.

(Note: This summary applies to this bill as introduced.)