Bill > S2113

This bill aims to increase competition and consumer protection in the credit card industry by addressing credit card interchange fees, which are fees charged by credit card companies and their member banks to merchants for processing transactions. The bill acknowledges that major credit card companies like Visa and MasterCard, along with their member banks, hold significant market power, leading to limited competition and little negotiating power for merchants regarding these fees. Unlike federal law, which regulates debit card interchange fees through the Dodd-Frank Act, this bill seeks to regulate credit card interchange fees. Specifically, it prohibits electronic payment systems (entities that facilitate credit card transactions, excluding national banks) from imposing certain contract terms on merchants. These prohibitions include restricting how merchants display pricing, preventing them from offering discounts for cash or other payment methods, limiting their ability to accept or reject specific electronic payment systems at different locations, setting minimum or maximum transaction values for credit card acceptance (with a minimum of $10), restricting the choice of processing systems, or preventing merchants from selecting which electronic payment system processes a credit card transaction. Violations of these provisions are considered unlawful practices and, in addition to penalties, will require the offending electronic payment system to reimburse affected merchants for any chargebacks, fees, and fines incurred during the period of violation. The act is set to take effect four months after its enactment.