SB 512: "Consumer Inflation Reduction and Tax Fairness Act"; enact

When a customer pays with a credit or debit card, the retailer pays a fee to the payment card network, often calculated as a percentage of the entire transaction, including sales tax. This bill, called the Consumer Inflation Reduction and Tax Fairness Act, would change that by amending Georgia's Fair Business Practices Act (O.C.G.A. Part 2 of Article 15 of Chapter 1 of Title 10) to bar interchange fees on the tax portion of a sale. Payment card networks would have to either exclude taxes from the fee calculation at the time of sale or refund the tax-related portion of the fee to retailers at least quarterly. If a retailer cannot provide tax information at checkout, the network can still charge on the full amount but must refund the tax-related fees once it gets proof of the taxes collected. Networks that willfully violate the law face a civil penalty equal to the tax-related fees charged in a year plus 10 percent. The bill also bans manipulating fees to get around these rules.

• Bars payment card networks from charging interchange fees based on any amount above the actual price of goods or services, excluding taxes.
• Requires payment card networks to either exclude taxes from interchange fee calculations or refund the tax-related portion of fees at least once per quarter.
• Allows networks to delay refunds for retailers who cannot capture tax data at checkout, but requires refunds once proof of taxes collected is provided.
• Imposes a civil penalty on networks that willfully violate the law, equal to the tax-related fees charged in a calendar year plus 10 percent.
• Makes it illegal to raise interchange fee rates or otherwise manipulate fees in order to get around the new tax exclusion requirement.
• Creates definitions for terms like 'interchange fee,' 'payment card network,' 'retailer,' and 'taxes' to clarify how the law applies.

Retailers of all kinds operating physical or online locations in Georgia, payment card networks such as Visa and Mastercard, payment card issuers (typically banks), and indirectly consumers who pay with credit or debit cards for purchases that include state and local sales, use, or excise taxes.

Retailers currently pay interchange fees calculated on the full transaction amount, including sales tax, which some argue inflates costs. If enacted, retailers would keep more money on card transactions since fees would no longer apply to the tax portion, potentially affecting pricing decisions and the cost of accepting card payments in Georgia.

• Section 1 names the law the 'Consumer Inflation Reduction and Tax Fairness Act.'
• Section 2 adds new Code Section 10-1-393.22 defining key terms including 'interchange fee,' 'payment card network,' 'retailer,' and 'taxes.'
• Subsection (b) prohibits payment card networks from basing interchange fees on any amount greater than the actual goods and services price, excluding taxes.
• Subsection (c) requires networks to exclude taxes from fee calculations or refund the tax-related fee amount at least quarterly.
• Subsection (d) addresses cases where retailers cannot provide tax data at the time of sale, requiring refunds later once proof is submitted.
• Subsection (e) sets a civil penalty for willful violations equal to the tax-related fees charged in a year plus 10 percent.
• Subsection (f) bans altering or manipulating interchange fees to circumvent the law's effect.
• Section 3 repeals any conflicting laws.

1. 2026-02-17Senate Read and Referred (Senate)
2. 2026-02-12Senate Hopper (Senate)

• Drew Echols (R, SD-049)Primary sponsor
• Clint Dixon (R, SD-045)
• Blake Tillery (R, SD-019)
• Russ Goodman (R, SD-008)
• Sam Watson (R, SD-011)
• Timothy Bearden (R, SD-030)
• Shawn Still (R, SD-048)
• Josh McLaurin (D, SD-014)
• Chuck Hufstetler (R, SD-052)
• Bo Hatchett (R, SD-050)
• John Albers (R, SD-056)
• Lee Anderson (R, SD-024)

• interchange fees
• credit card fees
• sales tax
• consumer protection
• retail regulation