PRINTER'S NO. 3283
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2394
Session of
2024
INTRODUCED BY SCOTT, SAMUELSON, PIELLI, MADDEN, VENKAT, FREEMAN,
McANDREW, KHAN, POWELL, SANCHEZ, KINSEY, CEPEDA-FREYTIZ,
HILL-EVANS, GREEN AND KENYATTA, JUNE 10, 2024
REFERRED TO COMMITTEE ON FINANCE, JUNE 10, 2024
AN ACT
Amending Title 72 (Taxation and Fiscal Affairs) of the
Pennsylvania Consolidated Statutes, providing for interchange
fee tax exclusion and for penalties; and making editorial
changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 72 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(Reserved)
PART II
TAXATION
Chapter
17. (Reserved)
19. Interchange Fee Tax Exclusion
CHAPTER 17
(Reserved)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
CHAPTER 19
INTERCHANGE FEE TAX EXCLUSION
Sec.
1901. Definitions.
1902. Exclusion of tax from interchange fees.
1903. Penalties.
§ 1901. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Credit card." A card, plate, coupon book or other credit
device existing for the purpose of obtaining money, property,
labor or services on credit.
"Debit card." A card or other payment code or device issued
or approved for use through a payment card network to debit an
asset account, notwithstanding the purpose for which the account
is established and whether authorization is based on signature,
personal identification number or other means. The term shall
include a general-use prepaid card, as defined in 15 U.S.C. §
1693l-1 (relating to general-use prepaid cards, gift
certificates, and store gift cards). The term does not include a
paper check.
"Electronic payment transaction." A transaction in which a
person uses a debit card, credit 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.
"Interchange fee." A fee established, charged or received by
a payment card network for the purpose of compensating the
20240HB2394PN3283 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
issuer for its involvement in an electronic payment transaction.
"Issuer." A person issuing a debit card or credit card or
the issuer's agent.
"Payment card network." An entity that meets all of the
following:
(1) Directly, or through licensed members, processors or
agents, provides the proprietary services, infrastructure and
software that routes information and data to conduct debit
card or credit card transaction authorization, clearance and
settlement.
(2) A merchant or seller 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.
"Settlement." The transfer of funds from a customer's
account to a seller or merchant upon electronic submission of
finalized sales transactions to the payment card network.
"Tax." A tax levied on the sale at retail of goods and
services under Article II of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
§ 1902. Exclusion of tax from interchange fees.
(a) Exclusion.--The amount of tax calculated as a percentage
of an electronic payment transaction amount and listed
separately on the payment invoice or other demand for payment
shall be excluded from the amount on which an interchange fee is
charged for the electronic payment transaction.
(b) Duties of payment card network.--A payment card network
shall:
(1) Either:
(i) deduct the amount of any tax imposed from the
20240HB2394PN3283 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
calculation of interchange fees specific to each form or
type of electronic payment transaction at the time of
settlement; or
(ii) rebate an amount of an interchange fee
proportionate to the amount attributable to the tax.
(2) If a merchant or seller is unable to capture and
transmit tax or fee amounts relevant to the sale at the time
of sale, accept proof of tax or fee amounts collected on
sales subject to an interchange fee upon the submission of
sales data by the merchant or seller and promptly credit the
merchant or seller's settlement account.
§ 1903. Penalties.
A payment card network that violates this chapter shall:
(1) be subject to a civil penalty of not more than
$1,000 per violation, payable to the plaintiff; and
(2) refund, to each merchant or seller that utilizes the
payment card network, the portion of the interchange fee that
was collected in violation of this chapter.
Section 2. Title 72 is amended by adding a part heading
immediately preceding Chapter 31 to read:
PART III
FISCAL AFFAIRS
Section 3. This act shall take effect in 60 days.
20240HB2394PN3283 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23