Limits fees and penalties for terminating merchant processing agreements for businesses with over $2.5 million in annual transactions and 30+.

This bill establishes rules for merchant processing agreements between credit card processors and businesses. It limits fees and penalties for terminating agreements to the greater of $500 or the unreimbursed cost of any equipment or property gifted or sold under the agreement. It also mandates that credit card processors disclose specific information clearly and conspicuously on the signature page of the agreement and provide a copy of the agreement to the business at the time it is entered into. The bill applies to contracts entered on or after its effective date.

Limits fees and penalties for terminating merchant processing agreements for businesses with over $2.5 million in annual transactions and 30+.

This bill establishes rules for merchant processing agreements between credit card processors and businesses. It limits fees and penalties for terminating agreements to the greater of $500 or the unreimbursed cost of any equipment or property gifted or sold under the agreement. It also mandates that credit card processors disclose specific information clearly and conspicuously on the signature page of the agreement and provide a copy of the agreement to the business at the time it is entered into. The bill applies to contracts entered on or after its effective date.