Senate · Introduced · 2025-2026 Regular Session

SB512: SB512 "Consumer Inflation Reduction and Tax Fairness Act"; enact

Last action February 17, 2026 · Senate Read and Referred

A Georgia Senate bill would stop credit and debit card networks from charging retailers interchange fees on the sales tax portion of a purchase, not just on the price of goods or services.

In plain language

When a customer pays with a credit or debit card, the retailer's bank and the card network charge an interchange fee, a cut of the transaction that is often calculated on the total amount charged, including sales tax. This bill would change that by amending Georgia's Fair Business Practices Act of 1975 (O.C.G.A. § 10-1-393.22) to bar payment card networks from basing that fee on anything more than the actual price of the goods or services, excluding state and local sales, use, and excise taxes. Card networks would have to either strip taxes out of the fee calculation at the time of each sale or refund the tax-related portion of the fee to the retailer at least quarterly. If a retailer cannot report the tax amount at checkout, the network can charge the full fee up front but must refund the tax portion later once given proof of the taxes collected. Networks that willfully break the rule face a civil penalty equal to the tax-based fees collected in a year plus 10 percent, and the bill also bans efforts to raise fee rates elsewhere to get around the law.

What the bill does

Bars payment card networks from charging retailers an interchange fee based on more than the actual goods and services price, excluding sales, use, and excise taxes.
Requires card networks to either exclude taxes from the fee calculation at the time of sale or refund the tax-related fee amount at least every quarter.
Allows networks to charge the full fee up front if a retailer cannot report taxes at checkout, but requires a later refund once proof of taxes collected is provided.
Creates a civil penalty for willful violations equal to the interchange fees charged on taxes in a calendar year plus 10 percent.
Makes it illegal to raise interchange fee rates elsewhere in a transaction to get around the new tax exclusion requirement.

Who it affects

Retailers in Georgia that accept credit or debit card payments, payment card networks and card issuers such as major card brands and banks, and indirectly consumers who pay with cards, since fee costs can affect prices retailers charge.

Why it matters

Retailers currently pay interchange fees calculated on the full purchase amount, including sales tax collected on the government's behalf. This bill would reduce that cost for retailers by excluding tax dollars from the fee base, potentially lowering a cost that businesses often pass on to customers.

Key provisions

Section 1 names the bill the 'Consumer Inflation Reduction and Tax Fairness Act.'
Section 2 adds new Code section 10-1-393.22 to the Fair Business Practices Act, defining terms like 'interchange fee,' 'payment card network,' and 'goods and services consumer purchase price.'
Subsection (b) prohibits interchange fees based on more than the goods and services price, excluding taxes.
Subsections (c) and (d) require networks to exclude taxes from fee calculations or refund the tax portion quarterly, including when retailers cannot report taxes at time of sale.
Subsection (e) sets a civil penalty for willful violations equal to the tax-based fees collected in a year plus 10 percent.
Subsection (f) bans manipulating interchange fee rates elsewhere in a transaction to circumvent the law.
Section 3 repeals conflicting laws.

Status timeline

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

Topics

interchange fees
credit card fees
retail businesses
consumer protection
sales tax