Card networks could not charge issuer fees on tips reported during payment

Card networks could not set, collect, or charge fees that pay card issuers on tips reported during payment processing. The rule covers voluntary tips to employees on credit cards, debit cards, and other payments handled by card networks. Businesses must send the tip amount when requesting payment approval or sending the payment for final processing. A network that breaks the rule would face a $1,000 penalty per payment and must refund the fee charged on the tip.

Card networks would credit businesses for fees charged on tips reported after payment. This option covers businesses that did not report tips during payment processing. The business must send tip data to the card network or its representative no later than 180 days after payment and submit the necessary records. Networks must issue the credit within 30 days after the business submits the necessary records.

Card networks could not raise other fees to get around the rule for tips. It covers fees on the part of a credit or debit card payment that is not a tip, and other fees charged to retailers. The restriction applies when a network raises those fees to get around the rule for tips.