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Introduced Version Senate Bill 102 History

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Senate Bill No. 102

(By Senator Hunter)

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[Introduced February 9, 2005; referred to the Committee

on Banking and Insurance; and the to the Committee on the Judiciary.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §31A-4-46, relating to credit card fraud; limiting liability of a West Virginia merchant for credit card fraud for card-not-present transactions; limiting rates charged; and requiring certain entities to report annually to the Attorney General concerning credit card fraud committed against businesses in this state.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §31A-4-46, to read as follows:
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-46. Fraudulent credit card transactions; annual reports to Attorney General.

(a) A banking institution that acts as an intermediary between a merchant bank and a bank issuing a credit card that is presented to a person or entity licensed to do business in West Virginia and engaged in card-not-present business activity may not charge the West Virginia merchant more than two hundred fifty dollars for each fraudulent card-not-present transaction, unless the banking institution issuing the credit card cooperates in investigation of the fraudulent credit card transaction and prosecutes criminal charges against the person or persons involved in the credit card fraud.
(b) A banking institution that acts as an intermediary between a merchant bank and a bank issuing a credit card that is presented to a person or other entity licensed to do business in West Virginia may not charge rates for businesses engaged in credit card sales by card-not-present service charges that are more than one tenth of a percent greater than similar charges to merchants who are engaged in credit card sales by card-not-present transactions in other states.
(c) Any banking institution that acts as an intermediary between a merchant bank and a bank issuing a credit card that is presented to a person or entity that is licensed to do business in West Virginia and is engaged in card-not-present business activity must provide the Attorney General of West Virginia with an annual report prior to the next regular session of the Legislature relating to transactions involving fraudulent card-not-present credit card sales by state businesses.



NOTE: The purpose of this bill is to limit the liability of in-state merchants for credit card fraud committed during card-not- present transactions. The bill also contains a provision that prohibits rates charged to in-state merchants for card-not-present transactions that exceed more than one tenth of a percent greater than similar charges made in other states. Finally the bill requires the annual reporting of fraudulent credit card transactions by certain banking concerns to the State Attorney General.

This section is new; therefore, strike-throughs and underscoring have been omitted.
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