A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "SALES TAX SWIPE FEE FAIRNESS ACT" BY ADDING SECTION 37-1-320 SO AS TO PROVIDE THAT CREDIT CARD PAYMENT PROCESSORS MAY NOT CHARGE A SWIPE FEE ON THE SALES TAX PORTION OF RETAIL TRANSACTIONS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "Sales Tax Swipe Fee Fairness Act."

 

SECTION 2.  Chapter 1, Title 37 of the S.C. Code is amended by adding:

 

    Section 37-1-320.  (A) A credit card payment processor may not charge a swipe fee on the sales tax portion of any retail transaction. A point-of-sale system must automatically exclude sales tax from any fee calculations. The Department of Consumer Affairs may promulgate any regulations necessary to implement the provisions of this section and consult with the Department of Revenue as necessary.

    (B) For purposes of this section:

       (1) "Credit card payment processor" means a company that facilitates electronic transactions, enabling businesses to accept credit card payment from customers.

       (2) "Swipe fees" means transaction fees that merchants pay to payment processors and card-issuing banks every time a customer uses a credit or debit card.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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