PCS for CS/HB 677, Electronic Payment Transactions — Commerce Committee (2023)
Summary
PCS for CS/HB 677 (2023) in the Commerce Committee, a bill to be entitled an act relating to electronic payment transactions. The bill creates section 501.0119, which defines terms and requires that certain amounts listed on evidences of sales be excluded from the amount on which an interchange fee is charged for an electronic payment transaction. It specifies requirements for payment card networks, requires merchants and sellers to provide proof of certain amounts or sales data within a specified timeframe under certain circumstances, and provides a penalty and for enforcement. Section 2 provides that the act takes effect October 1, 2023.
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“PCS for CS/HB 677, Electronic Payment Transactions — Commerce Committee (2023).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-3220-commerce-committee-proposed-committee-bills-pcbs-fn-pcs-for-a8819da022/
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for CS/HB 677 2023
1 A bill to be entitled
2 An act relating to electronic payment transactions;
3 creating s. 501.0119, F.S.; defining terms; requiring
4 that certain amounts listed on evidences of sales must
5 be excluded from the amount on which an interchange
6 fee is charged for that electronic payment
7 transaction; specifying requirements for payment card
8 networks in deducting or rebating amounts; requiring
9 merchants and sellers to provide to payment card
10 networks proof of certain amounts or sales data within
11 a specified timeframe under certain circumstances;
12 specifying requirements for payment card networks if a
13 merchant or seller is unable to capture and transmit
14 specified amounts relevant to the sale at the time of
15 sale; providing a penalty; limiting use of data in
16 certain circumstances; providing for enforcement;
17 providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Section 501.0119, Florida Statutes, is created
22 to read:
23 501.0119 Restrictions on Electronic Payment Transactions. —
24 (1) As used in this section, the term:
25 (a) "Acquirer bank" means a member of a payment card
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PCS for CS/HB 677 2023
26 network which contracts with a merchant for the settlement of
27 electronic payment transactions. An acquirer bank may contract
28 directly with merchants or indirectly through a processor to
29 process electronic payment transactions.
30 (b) "Authorization" means the process through which a
31 merchant requests approval for an electronic payment transaction
32 from the issuer.
33 (c) "Clearance" means the process of transmitting final
34 transaction data from a merchant to an issuer for posting to the
35 cardholder's account and the calculation of fees and charges,
36 including interchange fees, which apply to the issuer and
37 merchant.
38 (d) "Credit card" means a card, plate, coupon book, or
39 other credit device existing for the purpose of obtaining money,
40 property, labor, or services on credit.
41 (e) "Debit card":
42 1. Means a card, or other payment code or device, issued
43 or approved for use through a payment card network to debit an
44 asset account, regardless of the purpose for which the account
45 is established, whether authorization is based on a signature, a
46 personal identification number, or other means;
47 2. Includes a general-use prepaid card, as defined in 15
48 U.S.C. s. 1693l-1; and
49 3. Excludes paper checks.
50 (f) "Electronic payment transaction" means a transaction
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51 in which a person uses a debit card, credit card, or other
52 payment code or device issued or approved through a payment card
53 network to debit a deposit account or use a line of credit,
54 whether authorization is based on a signature, a personal
55 identification number, or other means.
56 (g) “Tip” means a sum of money paid in addition to the
57 payment obligation for the good or service obtained, including,
58 but not limited to, a payment for the benefit one or more
59 individuals who facilitate the provision of a good or service.
60 (h) "Interchange fee" means a fee established, charged, or
61 received by a payment card network for the purpose of
62 compensating the issuer for its involvement in an electronic
63 payment transaction.
64 (i) "Issuer" means a person issuing a debit card or credit
65 card or the issuer's agent.
66 (j) "Merchant" has the same meaning as the term "dealer"
67 in s. 212.06(2).
68 (k) "Payment card network" means an entity:
69 1. That directly or through licensed members, processors,
70 or agents provides the proprietary services, infrastructure, and
71 software that route information and data to conduct electronic
72 payment transaction authorization, clearance, and settlement;
73 and
74 2. That a merchant uses to accept as a form of payment a
75 brand of debit card, credit card, or other device that may be
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76 used to carry out electronic payment transactions.
77 (l) "Processor" means an entity that facilitates,
78 services, processes, or manages the debit or credit
79 authorization, billing, transfer, payment procedures, or
80 settlement with respect to any electronic payment transaction.
81 (m) "Settlement" means the process of transmitting sales
82 information to the issuing bank for collection and reimbursement
83 of funds to the merchant and calculating and reporting the net
84 transaction amount to the issuer and merchant for an electronic
85 payment transaction that is cleared.
86 (n) "Tax" means all taxes and fees levied under chapter
87 212 and s. 125.0104.
88 (o) "Tax documentation" means documentation sufficient for
89 the payment card network to determine the total amount of the
90 electronic payment transaction and the tax amount of such
91 transaction. Tax documentation may be related to a single
92 electronic payment transaction or multiple electronic payment
93 transactions aggregated over a period of time. Examples of tax
94 documentation include, but are not limited to, invoices,
95 receipts, journals, ledgers, and tax returns filed with the
96 Department of Revenue or local taxing authorities.
97 (2) This section does not apply to an electronic payment
98 transaction in which the tax or tip amount is not separately
99 stated on the consumer's payment invoice, sales slip, or other
100 evidence of sale as required under s. 212.07(2).
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101 (3) This section does not create liability for payment
102 card network regarding the accuracy of the tax or tip data
103 reported by the merchant.
104 (4) Except as provided in subsection (2), an issuer, a
105 payment card network, an acquirer bank, or a processor may not
106 receive or charge the merchant any interchange fees on the tax
107 or tip amount of an electronic payment transaction if the
108 merchant informs the acquirer bank or its designee of such tax
109 or tip amount as part of the authorization process for the
110 electronic payment transaction. A merchant must transmit the tax
111 or tip amount data as part of the authorization process to avoid
112 being charged interchange fees on the tax or tip amount of an
113 electronic payment transaction.
114 (5) A merchant that does not transmit the tax or tip
115 amount data in accordance with subsection (3) may submit tax
116 documentation or tip amount data for the electronic payment
117 transaction to the acquirer bank or its designee no later than
118 180 days after the date of the electronic payment transaction,
119 and within 30 days, the issuer must credit to the merchant the
120 amount of interchange fees charged on the tax or tip amount of
121 the electronic payment transaction.
122 (6) An issuer, a payment card network, an acquirer bank, a
123 processor, or other designated entity that has received the tax
124 or tip amount data and violates this section is subject to a
125 civil penalty of $1,000 per electronic payment transaction, and
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126 the issuer must refund the merchant the interchange fee
127 calculated on the tax or tip amount relative to the electronic
128 payment transaction.
129 (7) An entity involved in facilitating or processing an
130 electronic payment transaction, other than the merchant,
131 including, but not limited to, an issuer, a payment card
132 network, an acquirer bank, or a processor may not distribute,
133 exchange, transfer, disseminate, or utilize the electronic
134 payment transaction data except to facilitate or process the
135 electronic payment transaction or as required by law. A
136 violation of this subsection constitutes a violation of the
137 Florida Deceptive and Unfair Trade Practices Act under part II
138 of this chapter. Notwithstanding s. 501.211, violations must be
139 enforced only by the enforcing authority, as defined in s.
140 501.203(2), and subject the violator to the sanctions and
141 penalties provided for in that part. If such action is
142 successful, the enforcing authority is entitled to reasonable
143 attorney fees and costs.
144 Section 2. This act shall take effect October 1, 2023.
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