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Full Text of this Amendment
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 an 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) 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.''.
(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 an account for the purpose of the 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.''.
(As printed in the Congressional Record for the Senate on May 14, 2009.)