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REFERENCE TITLE: interchange fees; payment card transactions |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2768 |
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Introduced by Representative Powell
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AN ACT
amending title 44, chapter 38, Arizona Revised Statutes, by adding article 2; relating to electronic payment transactions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
The chapter heading of title 44, chapter 38, Arizona Revised Statutes, is changed from "BUSINESSES EXEMPT FROM MASK MANDATE" to "BUSINESSES GENERALLY".
Sec. 2. Title 44, chapter 38, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. ELECTRONIC PAYMENT TRANSACTIONS
AND INTERCHANGE FEES
44-7961. Definitions
In this article, unless the context otherwise requires:
1. "Acquirer bank" means a financial institution that contracts with a merchant, either directly or indirectly through a processor, for the settlement of electronic payment transactions.
2. "Authorization" means the process through which a merchant requests approval for an electronic payment transaction from the issuer.
3. "Chargeback" means the transfer of monies from an electronic payment transaction after settlement from a merchant's acquirer bank to an issuer because of a dispute over the electronic payment transaction.
4. "Chargeback dispute" means a process for resolving a dispute that has been raised about the validity of an electronic payment transaction and that seeks a chargeback of monies.
5. "Charitable contribution" means a charitable contribution as defined in 26 united states code section 170(c).
6. "Clearance" means the process of transmitting final transaction data from a merchant to an issuer for posting to the cardholder's account and calculating fees and charges, including interchange fees, that apply to the issuer and the merchant.
7. "Covered issuer" means an issuer that held consolidated worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets under management of more than $50,000,000,000 during any point in the previous calendar year.
8. "Credit card" means a card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor or services on credit.
9. "Debit card":
(a) Means a card or other payment code or device that is issued or approved for use through a payment card network to debit an asset account, regardless of the purpose for which the account is established, whether authorization is based on a SIGNATURE, a personal IDENTIFICATION number or other means.
(b) Includes a general-use prepaid card as defined in 15 united states code section 16931-1.
(c) Does not include paper checks.
10. "Electronic payment transaction" means a transaction in which a person uses a debit card, credit card or other payment code or device that is 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, a personal identification number or other means.
11. "Fee schedule" means any schedule, list, table, chart, agreement, communication or other document, whether publicly available or not, that sets forth an amount or formula for determining one or more fees.
12. "Interchange fee" means a fee that is established, charged or received by a payment card network for the purpose of compensating the issuer for its involvement in an electronic payment transaction.
13. "Issuer" means a person, or the person's agent, that issues a debit card or credit card.
14. "Merchant" means a person that accepts electronic payment transactions and collects and remits a tax.
15. "Payment card network" means an entity that both:
(a) Directly, or through a licensed member, processor or agent, provides the proprietary services, infrastructure and software to route information and data for the purpose of conducting electronic payment transaction authorization, clearance and settlement.
(b) Is used by a merchant to accept as a form of payment a brand of debit card or credit card or another device that may be used to carry out electronic payment transactions.
16. "Processor" means an entity that facilitates, services, processes or manages the debit or credit authorization, billing, transfer, payment procedures or settlement with respect to any electronic payment transaction.
17. "Settlement" means the process of transmitting sales information to the issuer for collection and reimbursement of monies to the merchant and calculating and reporting the net transaction amount to the issuer and merchant for an electronic payment transaction that is cleared.
18. "Tax" means any transaction privilege tax, use and occupation tax or excise tax imposed by this state or any unit of local government in this state.
44-7962. Interchange fees; prohibition; rates
A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification or inducement, may not:
1. Establish, charge or put forward on a fee schedule an interchange fee that the payment card network knows or reasonably should know has been used by a covered issuer if both:
(a) The fee is or includes a percentage multiplied by the gross dollar amount of a transaction that is conducted with a debit card or credit card.
(b) The fee does not exclude from the gross dollar amount of the transaction any amount attributable to a tax.
2. Increase the rate or amount of an interchange fee or other fee that applies to the portion of an electronic payment transaction other than the portion attributable to a tax on the transaction in an attempt to or in a manner that would circumvent the prohibition prescribed in paragraph 1 of this section.
44-7963. Payment card networks; fees; changes; disclosure; violation; unlawful practice
A. A payment card network that establishes or implements a fee schedule that the payment card network knows, or reasonably should know, has been used by one or more issuers, other than the payment card network, to determine the amount of an interchange fee charged or received by the issuer on an electronic payment transaction in the current or previous calendar year shall disclose to the attorney general and to the public all the following:
1. Any change or addition to a fee rate, formula or category on the fee schedule at least ninety days before the change or addition takes effect in this state.
2. A list identifying each issuer that used the payment card network's fee schedule in the previous calendar year to determine the amount of an interchange fee charged or received by that issuer on a electronic payment transaction conducted by a merchant that is located in this state. The disclosure described in this paragraph shall be made annually.
3. At least ninety days before any change, addition, new fee or changed fee application takes effect in this state, the change in a or a new or additional fee, fee rate, fee formula, fee category or fee application that the payment card network establishes, charges or receives. This paragraph applies to any fee other than an interchange fee that is established, charged or received by the payment card network on an electronic payment transaction.
B. A violation of this section is an unlawful practice pursuant to section 44-1522.
44-7964. Merchant pricing; penalties prohibited
A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification or inducement, may not impose a penalty on a merchant for setting prices in a manner that complies with state and federal law.
44-7965. Chargebacks; disclosure; prohibitions; annual statement
A. Before a chargeback that relates to an electronic payment transaction involving a card associated with a payment card network may occur, the payment card network shall make available to the public all payment card network rules, processes, dispute resolution procedures, fees and contractual provisions regarding the handling of chargebacks and chargeback disputes involving cards associated with the payment card network.
B. A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification or inducement, may not allow any chargeback to be finalized by an issuer of that payment card network until both:
1. the chargeback dispute is resolved by a determination made by an identified individual that the consumer or merchant is liable for the electronic payment transaction.
2. the consumer or merchant receives written notice of the determination.
C. A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification or inducement, may not charge, impose or assess a fee to a consumer or merchant if the fee is related to the resolution of a chargeback dispute over an electronic payment transaction if any of the following applies:
1. If the payment card network does not provide a published general notice of the assessment of the fee in advance of the chargeback dispute.
2. If the chargeback dispute has not been resolved by a determination made by an identified individual that the consumer or merchant is liable for the electronic payment transaction and the consumer or merchant has not received written notice of the determination.
3. later than sixty days after settlement of the electronic payment transaction that is the subject of the chargeback dispute, unless the payment card network identifies extraordinary circumstances and notifies in writing the merchant and consumer that are involved in the chargeback dispute about the extraordinary circumstances.
d. A payment card network shall annually provide each merchant and each consumer involved in one or more chargeback disputes involving cards associated with the payment card network with a statement in a paper or an electronic format identifying all chargeback disputes involving the merchant or consumer that occurred during the previous year and any chargebacks that were finalized for that merchant or consumer during that year.
44-7966. Fee schedules; limits; charitable contributions
A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification or inducement, may not establish or implement a fee schedule that the payment card network knows or reasonably should know has been used by one or more issuers other than the payment card network to determine the amount of an interchange fee charged or received with respect to a charitable contribution, unless the interchange fee does not exceed either:
1. Two-tenths of one percent of the amount of a charitable contribution made by means of a debit card.
2. Three-tenths of one percent of the amount of a charitable contribution made by means of a credit card.
44-7967. Violation; civil penalties; attorney general action; exception
A. A payment card network that violates this Article Is subject to a civil penalty of not more than $1,000 per electronic payment transaction that is related to the violation.
B. The attorney general may file an action against a payment card network that violates this article and may seek injunctive relief, a civil penalty and restitution.
c. this section does not apply to section 44-7963.
Sec. 3. Effective date
This act is effective from and after December 31, 2026.