Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.
Under HB4853, service technicians are required to notify a central financial crimes intelligence center if they discover a skimmer. Merchants are also mandated to disable affected terminals, notify law enforcement, and take protective measures against tampering. The bill establishes a civil penalty for violations, allowing the state to impose fines of up to $5,000 per day for non-compliance. This legislation is set to enhance consumer protection measures by ensuring a quicker response to potential fraud threats at electronic terminals and encouraging proactive monitoring by merchants and technicians.
House Bill 4853, introduced by Representative Perez of Harris, addresses the growing concern of electronic fraud associated with payment card skimmers. The bill proposes a new chapter in the Business and Commerce Code specifically focused on payment card skimmers found on electronic terminals such as ATMs and point-of-sale systems. It outlines definitions related to electronic terminals, financial institutions, and what constitutes a skimmer. Importantly, the bill creates a framework for governing the discovery, reporting, and handling of skimmers, aiming to provide a structured approach for both merchants and service providers to combat fraud effectively.
Notably, HB4853 generates some contention regarding enforcement and the responsibilities placed on merchants and service technicians. Critics may argue that the requirement for merchants to take immediate action places undue burdens on them, particularly smaller businesses that may lack the resources for compliance. Another point of contention is the definition and scope of penalties associated with violations, particularly how aggressively the state intends to enforce compliance and the potential for excessive fines against business operators.
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