Rhode Island House Bill H7607

Rhode Island 2026 Regular Session

• Introduced: 2/11/26
• Refer: 2/11/26

Caption

Prohibits the charging of swipe fees on taxes and gratuities.

Impact

If enacted, H7607 will significantly influence the way payment card fees are applied in the state. It will provide clear guidelines for payment card networks regarding the exclusion of taxes and gratuities from fee calculations. Payment networks will either need to deduct these amounts during the transaction settlement or rebate the relevant fees to merchants afterward. This bill is expected to alleviate the financial burden on both businesses and consumers, which could foster a more favorable climate for electronic transactions in Rhode Island.

Summary

House Bill 7607 seeks to amend commercial law in Rhode Island by prohibiting payment card networks from charging swipe fees on state and local taxes and gratuities. The bill aims to ensure that merchants are not penalized or charged extra fees for accepting electronic payments that include these additional costs. Specifically, the legislation mandates that any portion of a transaction attributed to taxes or gratuities should not be included in the swipe fee calculation. This measure is aimed at protecting consumers and businesses, simplifying payment processes, and enhancing fairness in payment processing costs.

Contention

While the bill has gained support due to its pro-business stance, there may be concerns regarding its implementation. Opponents could argue that this law might disrupt existing relationships between merchants and payment processors, potentially affecting service levels or leading to increased costs in other areas to compensate for lost revenues from swipe fees. Furthermore, there might be questions about how payment card networks will track and report tax and gratuity amounts accurately, especially when payments are processed electronically and in real time.