Bill > S135

This bill amends Massachusetts General Laws Chapter 140D, which governs credit and debit cards, by adding definitions for key terms such as "acquiring bank" (a financial institution providing merchant accounts), "chargeback" (a transaction billed back to a merchant), "debit card" (including various electronic payment devices and their associated numbers), "financial institution" (broadly defined to include banks and credit unions), "interchange fee" (a fee paid by an acquiring bank to an issuing bank for card transactions), "issuing bank" (a bank that provides credit cards), and "merchant account" (an account allowing merchants to accept card payments). It also defines "merchant" as a licensed business in Massachusetts selling goods or services. The bill further stipulates that if a merchant contract references the rules of a financial institution, that institution must provide merchants with a complete paper copy of these rules, notify them of any changes before they take effect, and provide copies of new or revised rules. Additionally, contracts authorizing merchants to accept credit cards must include the financial institution's full schedule of interchange fees, transaction rates, and other charges, along with an explanation of which rates apply to the merchant and under what circumstances. Crucially, merchants cannot be required to agree to keep these rules or rates confidential. If an issuing bank or credit card company fails to provide merchants with access to their rules or rates as required, the merchant will not be liable for chargebacks or associated fees from the time the contract was signed until the information is provided, and the issuing bank or credit card company will face a $10,000 civil penalty per charge levied before compliance. Merchants whose rights under this act are violated can pursue civil action for damages or other relief.