Actions

No actions available.

Full Text of this Amendment

SA 1100. Mr. DURBIN (for himself and Mr. BOND) submitted an amendment intended to be proposed to amendment SA 1058 proposed by Mr. DODD (for himself and Mr. SHELBY) to the bill H.R. 627, to amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes; which was ordered to lie on the table; as follows:

At the end of title I, add the following:
SEC. 109. CONSUMER DISCOUNTS; TRANSPARENCY IN MERCHANT FEE INFORMATION.
(a) In General.--Section 167 of the Truth in Lending Act (15 U.S.C. 1666f) is amended to read as follows:
``SEC. 167. INDUCEMENTS TO CARD HOLDERS BY SELLERS OF DISCOUNTS FOR PAYMENTS BY CASH, CHECK, OR DEBIT CARDS; FINANCE CHARGE FOR SALES TRANSACTIONS INVOLVING DISCOUNTS.
``(a) Cash, Check, and Debit Discounts.--With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer and any other covered person may not, by contract, rule, or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check, debit card, or similar payment device, rather than by use of a credit card.
``(b) Finance Charge.--With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by a means not involving the use of a particular open end credit plan or credit card shall not constitute a finance charge, as determined under section 106, if the seller--
``(1) offers the discount to all prospective buyers; and
``(2) discloses the availability of the discount to consumers clearly and conspicuously.
``(c) Discount Display Restrictions.--With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer or any other covered person may not, by contract, rule, or otherwise, restrict the discretion of the seller as to how to display or advertise the discounts offered by the seller.
``(d) Preferred Form of Payment.--A card issuer and any other covered person may not, by contract, rule, or otherwise, inhibit the ability of any seller to inform consumers regarding the preference of the seller for payment in the form of--
``(1) cash or similar means;
``(2) check or similar means;
``(3) debit card or similar device; or
``(4) credit card or similar device.
``(e) Violations.--It shall be a violation of this chapter, enforceable as provided in section 108, for a card issuer or any other covered person to promulgate, impose, or enforce any fine, condition, or penalty on a seller or a cardholder, or use any other means to prevent or limit any seller from offering a discount pursuant to subsection (a), from setting or displaying discounts pursuant to subsection (c), or from informing consumers regarding a preferred form of payment pursuant
to subsection (d).
``(f) Definitions.--For purposes of this section--
``(1) the term `covered person' means--
``(A) an electronic payment system network;
``(B) a licensed member of an electronic payment system network; and
``(C) any other person that sets or implements the rules for the use of an electronic payment system network; and
``(2) the term `processing fee' means any fee that is--
``(A) charged by an electronic payment system network or a licensed member of such network in connection with any aspect of a transaction conducted between a consumer and a seller, using a particular payment card bearing the logo of such electronic payment system network; and
``(B) incurred by the seller.''.
(b) Definitions.--Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended--
(1) in subsection (x), by striking ``or similar means'' and inserting ``debit card or similar payment device''; and
(2) by adding at the end the following:
``(cc) Debit Card.--The term `debit card' means any general-purpose card or other device issued or approved for use by a financial institution (as that term is defined in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a)) for use in debiting the account of a cardholder for the purpose of that cardholder obtaining goods or services, whether authorization is signature-based, PIN-based, or otherwise.
``(dd) Electronic Payment System Network.--The term `electronic payment system network' means a network that provides, through licensed members, processors, or agents--
``(1) for the issuance of credit cards, debit cards, or other payment cards or similar devices bearing any logo of the network;
``(2) the proprietary services and infrastructure that route information and data to facilitate transaction authorization, clearance, and settlement that merchants must access in order to accept credit cards, debit cards, or other payment cards or similar devices bearing any logo of the network as payment for goods and services; and
``(3) for the screening and acceptance of merchants into the network in order to allow such merchants to accept credit cards, debit cards, or other payment cards or similar devices bearing any logo of the network as payment for goods and services.
``(ee) Licensed Member.--The term `licensed member', in connection with any electronic payment system network, includes--
``(1) any creditor or credit card issuer that is authorized to issue credit cards or charge cards bearing any logo of the network;
``(2) any financial institution (as that term is defined in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a)) that is authorized to issue debit cards to consumers who maintain accounts at such financial institution; and
``(3) any person, including any financial institution, that is authorized--
``(A) to screen and accept merchants into any program under which any credit card, debit card, or other payment card or similar device bearing any logo of such network may be accepted by the merchant for payment for goods or services;
``(B) to process transactions on behalf of any such merchant for payment; and
``(C) to complete financial settlement of any such transaction on behalf of such merchant.''.
(c) Transparency in Merchant Fee Information.--Chapter 1 of the Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by adding at the end the following:
``SEC. 115. TRANSPARENCY IN MERCHANT FEE INFORMATION.
``(a) Fee Information.--The Board shall collect, and shall publish at least once every 2 years, in a form that is provided to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, and is made available to the public--
``(1) information on the processing fees, as such term is defined in section 167, charged by electronic payment system networks and licensed members of such networks in connection with payment cards bearing any logo of such electronic payment system networks; and
``(2) information on the rules, terms, and conditions to which a merchant is subject under an agreement with an electronic payment system network or a licensed member of such network, directly or indirectly, by contract or through a licensing arrangement for transactions initiated by consumers using payment cards bearing any logo of such electronic payment system network.
``(b) Purpose.--The purpose of the publication required under subsection (a) is to regularly inform Congress, businesses, and consumers regarding the types and amounts of processing fees charged in connection with payment cards, and the ways in which those types and amounts of fees change over time.
``(c) Regulations.--For purposes of this section, the Board may prescribe regulations and issue orders requiring any electronic payment system network or licensed member of such network to submit any information, including transaction and fee data, rules, agreements, and contracts, that the Board determines to be necessary or appropriate for the Board to meet the requirements of subsection (a).
``(d) Confidential Information.--The Board shall exclude from the publication required by subsection (a) any information collected from an electronic payment system network or a licensed member of such network which the Board deems to be confidential, proprietary, or a trade secret, such that public disclosure of the information would harm competition and consumers.''.


(As printed in the Congressional Record for the Senate on May 13, 2009.)