Oklahoma SB 1940: Credit card transactions; prohibiting certain interchange fees; requiring certain payment card network to deduct certain amount; requiring certain rebate at certain time. Effective date.

Bill Text

Req. No. 3746 Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA

2nd Session of the 60th Legislature (2026)

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1940 By: Thompson of the Senate

and

Hilbert of the House

COMMITTEE SUBSTITUTE

An Act relating to credit card transactions; defining
terms; excluding certain amounts from total amount
from which certain interchange fees are charged;
requiring certain payment card network to deduct
certain amounts from certain calculations; requiring
certain payment card network to rebate certain
merchant; requiring certain deduction or rebate to
occur at certain time; requiring payment card network
to accept certain proof and provide rebate in certain
time frame; construing provisions; authorizing
promulgation of rules by Attorney General; providing
for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2-711 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:

Req. No. 3746 Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1. “Assessment fee” means a fee paid to the payment card
network for allowing a merchant to use a payment card or other
payment code or device in an electronic payment transaction;
2. “Electronic payment transaction” means a transaction in
which a person uses a payment card or other payment code or device
issued or approved through a payment card network to debit a deposit
account or use a line of credit, whether authorization is based on a
signature, personal identification number, or other means;
3. “Exempted payment card issuer” means a payment card issuer
that has not held consolidated worldwide banking and nonbanking
assets including assets under management of more than Fifty Billion
Dollars ($50,000,000,000.00) in the preceding calendar year;
4. “Gratuity” means a voluntary monetary contribution to an
employee from a guest, patron, or customer in connection with
services rendered;
5. “Interchange fee” means a fee established, charged, put
forward, or received by a payment card network for the purpose of
compensating the payment card issuer for such issuer’s involvement
in an electronic payment transaction;
6. “Merchant” means a person or entity that accepts electronic
payment transactions and collects and remits a state or local tax;
7. “Payment card” means a credit card, debit card, check card,
or other card, code, or device that is issued to an authorized user

Req. No. 3746 Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
to purchase or obtain goods, services, money, or any other thing of
value;
8. “Payment card issuer” means a person issuing a payment card
or the person’s agent;
9. “Payment card network” means an entity that directly, or
through a licensed member, processor, or agent, provides the
proprietary services, infrastructure, and software that route
information and data to conduct payment card transaction
authorization, clearance, and settlement, and that an entity uses in
order to accept as a form of payment a brand of payment card that
may be used to carry out debit or credit transactions;
10. “State or local tax” includes a tax imposed by this state
or a unit of local government of this state; or
11. “Swipe fee” means the interchange fee and, if applicable,
the assessment fee.
B. A payment card network shall not establish, charge, put
forward, or receive an interchange fee, whether directly or through
an agent, licensed member, processor, contract, requirement,
condition, penalty, technological specification, inducement, or
otherwise, if:
1. The interchange fee is or includes a percentage multiplied
by the gross dollar amount of a transaction conducted with a payment
card; and

Req. No. 3746 Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. The interchange fee does not exclude from the gross dollar
amount of the transaction any amount attributable to a state or
local tax or gratuity.
C. A payment card network shall with respect to each form or
type of electronic payment transaction:
1. Deduct the amount of state or local tax imposed and gratuity
from the calculation of interchange fees attributable to the
transaction at the time of settlement; or
2. Rebate the merchant an amount equal to the amount of
interchange fees attributable to the state or local tax imposed and
gratuity on the transaction.
D. A deduction or rebate under this section shall occur at the
time of settlement when the merchant is able to capture and transmit
state or local tax amounts and gratuity relevant to the sale at the
time of sale as part of the transaction finalization. If a merchant
does not capture and transmit state or local tax or gratuity amounts
relevant to the sale at the time of sale, then the merchant may
submit to the payment card network documentat