HB 2090 — An Act amending Title 72 (Taxation and Fiscal Affairs) of the Pennsylvania Consolidated Statutes, providing for prohibition on certain payment card network fee practices; and imposing penalties.

PRINTER'S NO.   2827

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                           HOUSE BILL
                           No. 2090
                                                Session of
                                                  2026

     INTRODUCED BY GALLAGHER, SAMUELSON, SCOTT, HOHENSTEIN,
        SHUSTERMAN, WAXMAN, WEBSTER, MAYES, GIRAL, PROBST, HILL-
        EVANS, SANCHEZ, INGLIS, DOUGHERTY, NEILSON, MARKOSEK AND
        PIELLI, JANUARY 30, 2026

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 30, 2026


                                     AN ACT
 1   Amending Title 72 (Taxation and Fiscal Affairs) of the
 2      Pennsylvania Consolidated Statutes, providing for prohibition
 3      on certain payment card network fee practices; and imposing
 4      penalties.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Title 72 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a chapter to read:
 9                                 CHAPTER 19
10           PROHIBITING CERTAIN PAYMENT CARD NETWORK FEE PRACTICES
11   Sec.
12   1901.    Definitions.
13   1902.    Prohibition on certain payment card network fee
14                practices.
15   1903.    Penalties.
16   § 1901.    Definitions.
17      The following words and phrases when used in this chapter
18   shall have the meanings given to them in this section unless the
 1   context clearly indicates otherwise:
 2      "Acquirer bank."     A member of a payment card network that
 3   contracts with a merchant for the settlement of electronic
 4   payment transactions. The contract may be directly with a
 5   merchant or indirectly through a processor to process electronic
 6   payment transactions.
 7      "Consumer."   A person who has been issued a credit card or
 8   debit card or who purchases goods or services using an
 9   electronic payment transaction or another method of payment.
10      "Credit card."    A card, plate, coupon book or other credit
11   device existing for the purpose of obtaining money, property,
12   labor or services on credit.
13      "Debit card."    A card or other payment code or device issued
14   or approved for use through a payment card network to debit an
15   asset account, notwithstanding the purpose for which the account
16   is established and whether authorization is based on signature,
17   personal identification number or other means. The term includes
18   a general-use prepaid card, as defined in 15 U.S.C. § 1693l-1
19   (relating to general-use prepaid cards, gift certificates, and
20   store gift cards). The term does not include a paper check.
21      "Electronic payment transaction."     A transaction in which a
22   person uses a debit card, credit card or other payment code or
23   device, issued or approved through a payment card network to
24   debit a deposit account or use a line of credit, whether
25   authorization is based on a signature, personal identification
26   number or other means.
27      "Fee schedule."    A schedule, list, table, chart or similar
28   document or agreement, whether publicly disclosed or not, that
29   provides or fixes the amount, or the formula for determining the
30   amount, of one or more fee rates.

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 1      "Interchange fee."        A fee established, charged or received by
 2   a payment card network for the purpose of compensating the
 3   issuer for its involvement in an electronic payment transaction.
 4      "Issuer."      A person issuing a debit card or credit card or
 5   the issuer's agent.
 6      "Merchant."      A person that accepts electronic payment
 7   transactions and collects and remits a tax.
 8      "Payment card network."       An entity that meets all of the
 9   following:
10             (1)    Directly, or through licensed members, processors or
11      agents, provides the proprietary services, infrastructure and
12      software that routes information and data to conduct debit
13      card or credit card transaction authorization, clearance and
14      settlement.
15             (2)    A merchant or seller uses in order to accept as a
16      form of payment a brand of debit card, credit card or other
17      device that may be used to carry out debit or credit
18      transactions.
19      "Processor."      An entity that facilitates, services, processes
20   or manages the debit or credit authorization, billing, transfer,
21   payment procedures or settlement with respect to any electronic
22   payment transaction.
23      "Tax."       A tax levied on the sale at retail of goods and
24   services under Article II of the act of March 4, 1971 (P.L.6,
25   No.2), known as the Tax Reform Code of 1971.
26   § 1902.    Prohibition on certain payment card network fee
27                   practices.
28      (a)    Payment card network prohibitions.--A payment card
29   network, whether directly or through an agent, acquirer bank,
30   processor, contract, requirement, condition, penalty,

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 1   technological specification or inducement, may not:
 2             (1)   establish, charge or put forward on a fee schedule
 3      an interchange fee if:
 4                   (i)    the fee is or includes a percentage multiplied
 5             by the gross dollar amount of a transaction conducted
 6             with a debit card or credit card; and
 7                   (ii)    the fee does not exclude from the gross dollar
 8             amount of the transaction any amount attributable to a
 9             tax on the transaction;
10             (2)   increase the rate or amount of an interchange fee or
11      other fee that applies to the portion of an electronic
12      payment transaction other than the portion attributable to a
13      tax on the transaction in an attempt to, or in a manner that
14      would, circumvent the prohibition provided under paragraph
15      (1);
16             (3)   charge a fee to a consumer or merchant related to a
17      disputed electronic payment transaction until the dispute has
18      been resolved by a determination that the consumer or
19      merchant is liable for the transaction and the consumer or
20      merchant has been provided written notice of the
21      determination; or
22             (4)   impose a fee or other penalty on a merchant for
23      setting prices in a manner that complies with Federal and
24      State law.
25      (b)    Duties of payment card network.--A payment card network
26   shall:
27             (1)   Either:
28                   (i)    deduct the amount of any tax imposed from the
29             calculation of interchange fees specific to each form or
30             type of electronic payment transaction at the time of

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 1             settlement; or
 2                   (ii)   rebate an amount of an interchange fee
 3             proportionate to the amount attributable to the tax.
 4             (2)   If a merchant or seller is unable to capture and
 5      transmit tax or fee amounts relevant to the sale at the time
 6      of sale, accept proof of tax or fee amounts collected on
 7      sales subject to an interchange fee upon the submission of
 8      sales data by the merchant or seller and promptly credit the
 9      merchant or seller's settlement account.
10   § 1903.    Penalties.
11      (a)    Injunctive relief.--The Attorney General may file suit
12   to seek injunctive relief and, if appropriate, to collect a
13   civil penalty and order restitution from any payment card
14   network that the Attorney General believes has violated any
15   provision of this chapter.
16      (b)    Civil penalty and refund.--A payment card network that
17   violates this chapter shall:
18             (1)   Be subject to a civil penalty of not more than
19      $1,000 per violation, payable to the plaintiff.
20             (2)   Refund, to each merchant or consumer that utilizes
21      the payment card network, as applicable, the portion of any
22      fee that was collected in violation of this chapter.
23      Section 2.      This act shall take effect in 60 days.




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