Relating to a merchant's duties with respect to the use of a credit card, debit card, stored value card, or other access device.
Impact
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.
Summary
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.
Contention
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.
Relating to prohibiting a person or entity from surveilling, reporting, or tracking the purchase of firearms, ammunition, and accessories through the use of certain merchant category codes; imposing a civil penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the protection of minors from harmful, deceptive, or unfair trade practices in connection with the use of certain digital services and electronic devices, including the use and transfer of electronic devices to students by a public school.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Enacting the consumer inflation reduction and tax fairness act and exempting the portion of a credit card transaction constituting a tax or gratuity from assessment of the fee charged by the card issuer.