Bill > S06299

This bill amends the New York General Business Law to establish clear and consumer-friendly protections for debit card holders in cases of unauthorized card use. Under the new provisions, a cardholder will only be liable for unauthorized debit card transactions under specific conditions: the card must have been requested or previously used by the cardholder, the total liability is limited to $50, the card issuer has provided adequate notice about potential liability and instructions for reporting card loss or theft, the unauthorized use occurs before the issuer is notified of potential fraud, and the card issuer has a method to verify authorized users. Importantly, the bill shifts the burden of proof to the card issuer in any legal action to enforce liability, requiring them to demonstrate either that the transaction was authorized or that all conditions for liability have been met. The law essentially protects consumers by ensuring they are not held responsible for unauthorized debit card transactions beyond very limited circumstances, with the card issuer bearing most of the risk and responsibility for proving unauthorized use.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S6299