Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S205 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 710 FILED ON: 1/14/2025
3	3	SENATE . . . . . . . . . . . . . . No. 205
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	John J. Cronin
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to price-fixing prohibition and consumer transparency.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 8
16	16	SENATE DOCKET, NO. 710 FILED ON: 1/14/2025
17	17	SENATE . . . . . . . . . . . . . . No. 205
18	18	By Mr. Cronin, a petition (accompanied by bill, Senate, No. 205) of John J. Cronin for
19	19	legislation relative to price-fixing prohibition and consumer transparency. Consumer Protection
20	20	and Professional Licensure.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Fourth General Court
24	24	(2025-2026)
25	25	_______________
26	26	An Act relative to price-fixing prohibition and consumer transparency.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Definitions as used in this Act:
30	30	2 a. "Acquirer bank" means a member of a payment card network that contracts with a
31	31	3merchant for the settlement of electronic payment transactions. An acquirer bank may contract
32	32	4directly with merchants or indirectly through a processor to process electronic payment
33	33	5transactions.
34	34	6 b. "Authorization" means the process through which a merchant requests approval for an
35	35	7electronic payment transaction from the issuer.
36	36	8 c. "Clearance" means the process of transmitting final transaction data from a merchant to
37	37	9an issuer for posting to the cardholder's account and the calculation of fees and charges,
38	38	10including interchange fees, that apply to the issuer and the merchant. 2 of 8
39	39	11 d. “Consumer” means any person who has been issued a credit card or debit card or who
40	40	12purchases goods or services using an electronic payment transaction or another method of
41	41	13payment.
42	42	14 e. "Covered credit card issuer" means a credit card issuer that, together with any
43	43	15affiliates, had consolidated worldwide banking and nonbanking assets, including assets of
44	44	16affiliates, other than trust assets under management, of more than $85,000,000,000 at any point
45	45	17during the previous calendar year.
46	46	18 f. "Credit card" means a card, plate, coupon book, or other credit device existing for the
47	47	19purpose of obtaining money, property, labor, or services on credit.
48	48	20 g. "Debit card" means a card or other payment code or device issued or approved for use
49	49	21through a payment card network to debit an asset account, regardless of the purpose for which
50	50	22the account is established, whether authorization is based on a signature, a personal identification
51	51	23number, or other means.
52	52	24 h. "Debit card" includes a general use prepaid card, as defined in 15 U.S.C. 16931-1.
53	53	25"Debit card" does not include paper checks.
54	54	26 i. "Electronic payment transaction" means a transaction in which a person uses a debit
55	55	27card, a credit card, or other payment code or device issued or approved through a payment card
56	56	28network to debit a deposit account or use a line of credit, whether authorization is based on a
57	57	29signature, a personal identification number, or other means. 3 of 8
58	58	30 j. “Fee schedule” means any schedule, list, table, chart, or similar document or
59	59	31agreement, whether publicly disclosed or not, that sets forth or fixes the amount, or the formular
60	60	32for determining the amount, of one or more fee rates.
61	61	33 k. "Gratuity" means a voluntary monetary contribution to an employee from a guest,
62	62	34patron, or customer in connection with services rendered.
63	63	35 l. "Interchange fee" means a fee established, charged, or received by a payment card
64	64	36network for the purpose of compensating the issuer for its involvement in an electronic payment
65	65	37transaction.
66	66	38 m. "Issuer" means a person issuing a debit card or credit card or the issuer's agent.
67	67	39 n. "Merchant" means a person that accepts electronic payment transactions and collects
68	68	40and remits a tax.
69	69	41 o. "Payment card network" means an entity that:
70	70	42 1. directly or through licensed members, processors, or agents, provides the proprietary
71	71	43services, infrastructure, and software to route information and data for the purpose of conducting
72	72	44electronic payment transaction authorization, clearance, and settlement; and
73	73	45 2. a merchant uses to accept as a form of payment a brand of debit card, credit card, or
74	74	46other device that may be used to carry out electronic payment transactions.
75	75	47 p. "Person" means any individual, firm, public or private corporation, government,
76	76	48partnership, association, or any other organization or entity. 4 of 8
77	77	49 q. "Processor" means an entity that facilitates, services, processes, or manages the debit
78	78	50or credit authorization, billing, transfer, payment procedures, or settlement with respect to any
79	79	51electronic payment transaction.
80	80	52 r. "Settlement" means the process of transmitting sales information to the issuing bank for
81	81	53collection and reimbursement of funds to the merchant and calculating and reporting the net
82	82	54transaction amount to the issuer and merchant for an electronic payment transaction that is
83	83	55cleared.
84	84	56 s. "Tax" means any use and occupation tax or excise tax imposed by the State or a unit of
85	85	57local government in the State.
86	86	58 t. "Tax documentation" means documentation sufficient for the payment card network to
87	87	59determine the total amount of the electronic payment transaction and the tax or gratuity amount
88	88	60of the transaction. Tax documentation may be related to a single electronic payment transaction
89	89	61or multiple electronic payment transactions aggregated over a period of time. Examples of tax
90	90	62documentation include, but are not limited to, invoices, receipts, journals, ledgers, and tax
91	91	63returns filed with the Department of Revenue or local taxing authorities.
92	92	64 SECTION 2. Prohibition on network interchange price-fixing on behalf of covered credit
93	93	65card issuers and other unfair credit card practices.
94	94	66 a. It is unlawful for any payment card network to, directly or indirectly through any
95	95	67agent, processor, contract, requirement, condition, penalty, technological specification,
96	96	68inducement, or otherwise 5 of 8
97	97	69 (1) fix or conspire to fix an interchange fee with, or on behalf of, another covered credit
98	98	70card issuer or payment card network;
99	99	71 (2) require any person to accept as payment any credit card issued by a covered credit
100	100	72card issuer if such person accepts as payment other credit cards that are enabled for processing
101	101	73over such payment card network;
102	102	74 (3) charge a consumer or a merchant a fee or assessment due to a disputed credit card
103	103	75transaction unless and until a finding of fact concludes that the consumer or merchant is
104	104	76responsible for the disputed transaction and the consumer or merchant is provided written
105	105	77notification of the finding of fact; or
106	106	78 (4) impose a penalty on a merchant based upon the way that merchant lawfully sets prices
107	107	79for goods or services.
108	108	80 b. It is unlawful for any covered credit card issuer to, directly or indirectly through any
109	109	81agent, processor, contract, requirement, condition, penalty, inducement, technological
110	110	82specification, or otherwise,
111	111	83 1. fix or conspire to fix an interchange fee with, or on behalf of, another covered credit
112	112	84card issuer or payment card network;
113	113	85 2. receive or charge any interchange fee with respect to a credit card transaction in an
114	114	86amount that is included on or determined by a fee schedule that:
115	115	87 (i) has been fixed, established, or put forward by a payment card network; or
116	116	88 (ii) the covered credit card issuer knows, or reasonably should know, is being used in the
117	117	89same calendar year by any other covered card issuer to determine the amount any interchange fee 6 of 8
118	118	90with respect to a credit card transaction that such other covered credit card issuer receives or
119	119	91charges;
120	120	92 3. On or after the date that is 180 days after the enactment of this Act, issue a monthly
121	121	93statement to a consumer who has been issued a credit card by the covered credit card issuer
122	122	94without disclosing in a clear and conspicuous manner for each credit card transaction listed in the
123	123	95monthly statement,
124	124	96 (i) whether any interchange fees were charged on the credit card transaction; and
125	125	97 (ii) the amount charged for each such interchange fee charged on each credit card
126	126	98transaction.
127	127	99 (4) charge a consumer or a merchant any fee or assessment due to a disputed credit card
128	128	100transaction unless and until a finding of fact concludes that the consumer or merchant is
129	129	101responsible for the disputed transaction and the consumer or merchant is provided written
130	130	102notification of the finding of fact; or
131	131	103 (5) prohibit or penalize a merchant based upon the way the merchant lawfully sets prices
132	132	104for goods or services.
133	133	105 SECTION 3. Interchange fees on taxes and gratuities prohibited.
134	134	106 a. An issuer, a payment card network, an acquirer bank, or a processor may not receive or
135	135	107charge a merchant any interchange fee on the tax amount or gratuity of an electronic payment
136	136	108transaction if the merchant informs the acquirer bank or its designee of the tax or gratuity amount
137	137	109as part of the authorization or settlement process for the electronic payment transaction. The
138	138	110merchant must transmit the tax or gratuity amount data as part of the authorization or settlement 7 of 8
139	139	111process to avoid being charged interchange fees on the tax or gratuity amount of an electronic
140	140	112payment transaction.
141	141	113 b. A merchant that does not transmit the tax or gratuity amount data in accordance with
142	142	114this Section may submit documentation for the electronic payment transaction to the acquirer
143	143	115bank or its designee no later than 180 days after the date of the electronic payment transaction,
144	144	116and, within 30 days after the merchant submits the necessary documentation, the issuer must
145	145	117credit to the merchant the amount of interchange fees charged on the tax or gratuity amount of
146	146	118the electronic payment transaction.
147	147	119 c. This Section does not create liability for a payment card network regarding the
148	148	120accuracy of the tax or gratuity data reported by the merchant.
149	149	121 d. It shall be unlawful for an issuer, a payment card network, an acquirer bank, or a
150	150	122processor to alter or manipulate the computation and imposition of interchange fees by
151	151	123increasing the rate or amount of the fees applicable to or imposed upon the portion of a credit or
152	152	124debit card transaction not attributable to taxes or gratuities to circumvent the effect of this
153	153	125Section.
154	154	126 SECTION 4. Penalties.
155	155	127 a. The attorney general of the Commonwealth may file suit to seek injunctive relief and,
156	156	128if appropriate, to collect a civil penalty from any covered credit card issuer or payment card
157	157	129network whom the attorney general believes has violated any of the prohibitions in Section 3 of
158	158	130this Act. 8 of 8
159	159	131 b. An issuer, a payment card network, an acquirer bank, a processor, or other designated
160	160	132entity that has received the tax or gratuity amount data and violates Section 4 is subject to a civil
161	161	133penalty of $1,000 per electronic payment transaction conducted in violation of this Act, and the
162	162	134issuer must refund the merchant the interchange fee calculated on the tax or gratuity amount
163	163	135relative to the electronic payment transaction.
164	164	136 c. An entity, other than the merchant, involved in facilitating or processing an electronic
165	165	137payment transaction, including, but not limited to, an issuer, a payment card network, an acquirer
166	166	138bank, a processor, or other designated entity, may not distribute, exchange, transfer, disseminate,
167	167	139or use the electronic payment transaction data except to facilitate or process the electronic
168	168	140payment transaction; to monitor for, detect, or prevent fraud; to support loyalty, rewards or
169	169	141promotional offerings; to tailor products and services to serve customer needs; or as required by
170	170	142law. A violation of this subsection constitutes a violation of chapter 93A of the general laws.
171	171	143 SECTION 5. Severability.
172	172	144 If any of the provisions of this Act are held invalid, the remainder shall not be affected as
173	173	145a result; nor shall the application of the provision held invalid to persons or circumstances other
174	174	146than those as to which it is held invalid be affected as a result.