Relating to a merchant's duties with respect to the use of a credit card, debit card, stored value card, or other access device.
The bill significantly impacts the Business & Commerce Code of Texas by adding a new chapter that directly addresses the obligations of merchants related to credit and debit card transactions. These obligations include cooperating with financial institutions during investigations of fraudulent activities, thus ensuring that merchants assist in uncovering and resolving issues that arise from unauthorized transactions more effectively.
House Bill 2069 establishes new responsibilities for merchants regarding the acceptance of credit cards, debit cards, and other access devices. It introduces requirements for merchants to verify the identity of individuals conducting transactions with these devices to prevent unauthorized usage. Specifically, it mandates that merchants develop and maintain reasonable procedures to ensure they check whether a user is an authorized holder of the access device.
Notable points of contention may arise around the enforcement of these new regulations on merchants. There may be concerns regarding the burden this legislation places on smaller businesses that might struggle to implement the necessary verification procedures without incurring substantial costs. Additionally, questions may be raised about how the law would be enforced and whether the penalties for non-compliance would be fair and proportionate.