Texas Senate Bill SB1648

Texas 2019 - 86th Regular

Caption

Relating to payment card skimmers on motor fuel dispensers; imposing a civil penalty; creating criminal offenses.

Impact

The bill includes provisions for the establishment of a Payment Card Fraud Center, which will serve as a collaborative hub for state agencies involved in detecting and responding to payment card fraud. This center’s purpose includes coordinating law enforcement efforts and providing assistance to merchants in developing effective strategies against fraud. In doing so, SB1648 emphasizes a coordinated approach to tackling payment card fraud at the state level, potentially reducing incidents of such crime and increasing consumer trust in payment systems.

Summary

SB1648 aims to address the growing issue of payment card fraud related to motor fuel dispensers. Specifically, the bill introduces measures to combat the installation of skimmers—devices used to unlawfully intercept payment card information—on unattended payment terminals at fuel stations. The legislation outlines the definitions of key terms such as 'merchant', 'skimmer', and 'payment card', and establishes specific duties for merchants to prevent and respond to skimmer incidents. Merchants will be required to implement procedures to detect and remove skimmers and to report any discoveries to the Texas Department of Agriculture.

Contention

Notable points of contention may arise from the civil penalties imposed on merchants for violations of the bill’s regulations. SB1648 stipulates penalties of up to $5,000 for willful violations, as well as lesser penalties for negligent reporting of skimmer incidents. Opponents may argue that these penalties could disproportionately impact smaller merchants or those struggling with compliance. Additionally, discussions might focus on the balance between necessary consumer protections and the regulatory burdens placed on businesses, especially concerning compliance costs and operational adjustments needed to prevent fraud.