Plain English Summary
This bill prohibits payment card networks, banks, and processors from charging interchange fees (transaction fees) on the sales tax or tip portions of credit and debit card payments in North Carolina. Merchants can avoid these fees by reporting tax and tip amounts during payment processing, or they can request refunds up to 180 days after a transaction if they submit documentation.
Arguments in Favor
Supporters argue this bill reduces costs for merchants, particularly small businesses and restaurants, by eliminating fees charged on amounts that aren't actually business revenue. They contend that sales tax and tips are pass-through funds that merchants collect for government or employees, so charging interchange fees on these amounts is unfair. The bill protects merchants from paying fees on money that isn't theirs to keep.
Arguments Against
Opponents may argue this bill could increase costs for cardholders or reduce rewards programs if payment networks offset lost revenue by raising fees elsewhere. They contend that distinguishing between tax/tip and transaction amounts adds administrative complexity and compliance burdens for payment processors. Some may also question whether the $1,000 per-transaction penalty is proportionate or could lead to excessive litigation.
AI-generated analysis based on bill text. Always verify with official sources at ncleg.gov. This is not legal or political advice.
Sponsors
Primary Sponsor
Representative · District 77
Primary Sponsor
Representative · District 89
Primary Sponsor
Representative · District 78
Cosponsors (11)
Representative · District 5
Representative · District 48
Representative · District 76
Representative · District 23
Representative · District 26
Representative · District 4
Representative · District 52
Representative · District 84
Representative · District 70
Representative · District 34
Representative · District 7