Existing law, the Financial Code, provides for the licensure and regulation of various types of financial institutions and transactions. Existing law, the Song-Beverly Credit Card Act of 1971, regulates the issuance, use, and processing of credit cards and credit card transactions.

This bill would enact the Consumer Inflation Reduction and Tax Fairness Act, within the Financial Code, to require that the calculation of interchange fees charged by an issuer, a payment card network, an acquirer bank, or a processor not take into account certain state and local taxes and fees, as specified. The bill would define various terms for these purposes. The bill would prohibit a payment card network, an acquirer bank, or a processor from altering the computation of interchange fees, either by increasing the rate or the amount of fees applicable, to circumvent the effects of the act.

Existing law, the Unfair Competition Law, makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.

This bill would provide a violation of its provisions is enforceable pursuant to the Unfair Competition Law, as provided.