Industry experts say card networks don't carry itemized tax/tip data; technical fixes would be complex
Payments‑industry witnesses told the commission point‑of‑sale systems record tax/tip breakdowns but card networks typically transmit only a single amount and transaction ID, making state‑level carve‑outs technically complex and potentially costly to implement.
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Several speakers explained a fundamental technical constraint: consumer card network transmissions generally carry only the total amount and authorization data, not invoice‑level tax or tip fields. Deb Peters of the Electronic Payments Coalition said the sales‑tax amount is stored at the merchant software level for state compliance but "does not travel through the card networks," and that there is "no switch to turn on" to make a consumer card carry additional enhanced data today.
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