Bill Text: MI SB0699 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Trade: business practices; disclosure of certain items in a credit card processing service agreement; require. Creates new act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-10-21 - Referred To Committee On Finance [SB0699 Detail]
Download: Michigan-2021-SB0699-Introduced.html
SENATE BILL NO. 699
A bill to regulate certain agreements involving credit card processing services.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "credit card processing service act".
(a) "Agreement" means a written contractual agreement between a person that offers a credit card processing service and a merchant.
(b) "Financial institution" means a state or nationally chartered bank, state or federally chartered savings bank, or state or federally chartered credit union.
(c) "Merchant" means a person that utilizes a credit card processing service in the operation of their business.
(d) "Person" means an individual, partnership, limited liability company, corporation, association, or other legal entity.
Sec. 3. (1) A person that offers a credit card processing service in this state shall disclose in an agreement to provide a credit card processing service all of the following:
(a) The effective date of the agreement.
(b) The term of the agreement.
(c) The amount of any monthly minimum fee or charge for the credit card processing service.
(d) The amount of a fee for terminating the agreement.
(2) A person that offers a credit card processing service in this state shall not charge a fee of more than $50.00 for terminating an agreement for a credit card processing service.
(3) Equipment rental or lease purchase payments charged by a person that offers a credit card processing service are not considered fees.
(4) The disclosures required under subsection (1) and any other terms and conditions pertaining to the use of the credit card processing service must be printed in not less than 8-point type.
Sec. 5. (1) An agreement that violates a provision of this act is void and unenforceable. This subsection applies only to an agreement that takes effect or is extended, renewed, or modified after the effective date of this act.
(2) This act does not apply to a financial institution that offers a credit card processing service or the parent, affiliate, or subsidiary of a financial institution that offers a credit card processing service.
