Bill > S182

This bill, titled "Relative to credit and debit cards," aims to enhance consumer protection and professional licensure by amending Chapter 140D of the General Laws. It introduces new 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 access devices and stored value cards), "financial institution," "interchange fee" (the fee an acquiring bank pays to an issuing bank for card transactions), "issuing bank" (a financial institution that provides credit cards), and "merchant account" (a bank account for accepting card payments). The bill mandates that financial institutions must provide merchants with access to a complete paper copy of their rules, notify them of any rule changes before they take effect, and provide copies of new or modified rules. Furthermore, contracts authorizing merchants to accept credit or debit cards must include the financial institution's full schedule of interchange fees, transaction rates, and any other fees charged to merchants, along with an explanation of which rates apply 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 any chargebacks or associated fees from the time the contract was signed until the information is provided, and the issuing bank or credit card company could face a civil penalty of $10,000 per charge levied before providing the rules. Merchants whose rights under this act are violated can pursue civil action for damages or equitable relief.