Texas House Bill HB4007

Texas 2019 - 86th Regular

Caption

Relating to payment card skimmers and the creation of a payment card fraud center; imposing a civil penalty; creating criminal offenses.

Impact

The establishment of the Payment Card Fraud Center is expected to create a centralized authority to combat payment card fraud across the state. This center will enhance collaboration between local law enforcement, merchants, and state agencies in addressing and preventing fraudulent activities. The bill's requirements for merchant compliance could lead to increased vigilance in monitoring payment terminals, ultimately aiming to protect consumers from fraud. However, these regulations also place significant responsibilities on merchants who may face financial penalties for noncompliance.

Summary

House Bill 4007 aims to tackle the issue of payment card fraud by establishing a dedicated Payment Card Fraud Center in Texas and outlining specific duties and penalties for merchants regarding unattended payment terminals. The bill mandates that merchants implement procedures to prevent, identify, and report the installation of skimmers on payment terminals. Failure to do so may result in civil penalties and criminal charges for negligence or misconduct related to skimmer devices. The Attorney General is tasked with creating rules to support this enforcement and ensuring compliance among merchants.

Contention

The bill reflects a growing concern about the increasing incidents of payment card fraud facilitated by skimmers placed on unattended terminals, particularly in locations like gas stations and convenience stores. While supporters argue that the bill is a necessary step to safeguard consumers and enhance fraud prevention mechanisms, concerns may arise regarding the financial burden on smaller businesses that may struggle to comply with the stringent requirements outlined in the bill. Some opponents might question the effectiveness of civil penalties and call for more robust criminal penalties against repeat offenders to act as a stronger deterrent.