Payment card network fees for merchants and providing a penalty

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

This bill prohibits a depository institution, such as a bank, savings and loan association, or credit union, or another processor of payment cards, which include credit cards and certain debit cards and gift cards, from entering into an agreement with a merchant related to acquiring or processing payment card transactions unless the depository institution or other processor provides the merchant with a complete schedule of all service and transaction fees and rates applicable to the merchant's transactions and a copy of all payment card association rules, regulations, and bylaws applicable to the merchant's transactions. A similar prohibition is imposed on payment card issuers that own or operate their own payment card processing network. A depository institution, other payment card processor, or payment card issuer that violates this prohibition may not charge back to the merchant any reversed transaction of the merchant. A depository institution, other payment card processor, or payment card issuer that willfully and knowingly violates either of these prohibitions may be fined not more than $2,000.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.

Who's behind it

6 senators are its authors⁠. 5 are Democrats and 1 is a Republican.

7 more lawmakers signed on in support⁠.

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.

• Amendment SA1-SB105