Bill > H1259

This bill addresses practices in electronic payment transactions, particularly focusing on credit card networks, issuers, and merchants. The bill introduces comprehensive definitions for terms like "electronic payment transaction," "interchange fee," and "covered credit card issuer," and establishes several key prohibitions. It makes it unlawful for payment card networks and covered credit card issuers to fix interchange fees, require merchants to accept specific credit cards, or charge consumers or merchants fees for disputed transactions without a factual finding. The bill mandates transparency by requiring credit card issuers to disclose interchange fees on monthly statements and prohibits charging interchange fees on tax and gratuity amounts if merchants properly document these amounts during transaction processing. Additionally, the bill restricts how transaction data can be used, limiting distribution to specific purposes like fraud prevention and customer service. The legislation empowers the state's attorney general to seek injunctive relief and impose civil penalties for violations, with potential penalties of $1,000 per transaction. The bill aims to promote fairness, transparency, and consumer protection in electronic payment systems by preventing anti-competitive practices and ensuring merchants and consumers have clear information about transaction fees.

Business and Industry

https://malegislature.gov/Bills/194/H1259