Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.
Summary
This bill would amend New York’s General Business Law to limit enforcement of the state’s credit card surcharge notice requirement. It defines “payment card network” and then bars any such network, or a subdivision of it, from assessing penalties against a small business or financial intermediary for failing to comply with the notice requirement in section 518. Any contract term, agreement, or arrangement that imposes such a penalty would be automatically void.
In practical terms, the bill shifts the risk of noncompliance away from small businesses and financial intermediaries and onto payment card networks, at least with respect to contractual penalties tied to surcharge notice violations. The bill takes effect immediately and would apply statewide, while preserving the underlying surcharge notice rule itself.
Impact
The bill would amend General Business Law section 518 by adding a new subdivision that restricts the ability of payment card networks to enforce penalty provisions against small businesses and financial intermediaries for violations of the credit card surcharge notice requirement. It also adds a statutory definition of “payment card network” to section 511. The measure would not eliminate the notice requirement, but it would invalidate any contractual clause that imposes penalties on the covered entities for noncompliance.
Sentiment
There is no recorded committee transcript or vote history provided, so the bill’s sentiment cannot be measured from debate or roll call. Based on the text and caption, the measure appears to be framed as a small-business protection bill, suggesting a pro-business, consumer-protection-oriented rationale rather than a punitive enforcement approach.
Contention
The main point of contention is likely the allocation of enforcement power and liability between payment card networks and small businesses or financial intermediaries. Supporters would likely argue that networks should not be able to impose private contractual penalties for a notice violation, especially on smaller entities. Opponents may argue that limiting penalties could weaken compliance incentives for surcharge disclosure rules and reduce the ability of networks to enforce uniform standards across merchants and intermediaries.
Same As
Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.
Same As
Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement
Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.
Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.
Requires certain stores that accept credit or debit card payment to accept flexible benefit cards as a form of payment for eligible items; defines terms; establishes penalties for violations of such requirement to accept payment by flexible benefit card; requires the superintendent of financial services to provide education and outreach to covered stored to inform them of the such requirement.
To Create The Second Amendment Financial Privacy Act; To Prohibit Financial Institutions And Payment Networks From Using Certain Discriminatory Practices; And To Provide For Enforcement Of Violations.
Prohibits certain surcharges on certain credit or debit card transactions in the city of New York; provides that no agency or department of the city of New York, or any tribunal located therein, shall be authorized to impose a surcharge on a holder who elects to use a credit or debit card in lieu of payment by cash, check, or similar means to pay any fine, civil penalty, or fee owed.
Enacts the "New York small contractor relief act"; defines terms; authorizes a small contractor captive insurance company to purchase, and the New York state insurance fund shall be authorized and directed to provide, reinsurance and retrocession reinsurance for such captive insurance company, on either a quota share arrangement or facultative arrangement at a rate to be determined by the board of the fund; provides that a small contractor captive insurance company organized pursuant to this article shall not refuse to issue, renew or cancel a policy of any qualified small construction contractor based upon geographic location or line of business engaged in by such contractor; makes related provisions.