KRS § 434.560 — KY Code / Title XL / Chapter 434 / Section 434.560
434.560 Definitions for KRS 434.550 to 434.730
Status: in_force

434.560 Definitions for KRS 434.550 to 434.730.

As used in KRS 434.550 to 434.730, unless the context otherwise requires:

(1) "Automated banking device" means any machine which when properly activated by

a credit card, debit card or personal identification code will perform any of the

following services:

(a) Dispense money as a debit to the cardholder's savings or checking account;

(b) Print the cardholder's savings or checking account balances on a statement;

(c) Transfer funds between a cardholder's savings and checking account;

(d) Accept payments on a cardholder's loan;

(e) Dispense cash advances on an open end credit or a revolving charge

agreement;

(f) Accept deposits to a customer's savings or checking account;

(g) Receive inquiries of verification of checks and dispense information which

verifies that funds are available to cover said checks; or

(h) Cause money to be transferred electronically from a cardholder's account to

an account held by any business, firm, retail merchant, corporation, or any

other organization;

(2) "Cardholder" means:

(a) For a credit or debit card, the person or organization named on the face of a

credit or debit card to whom or for whose benefit the credit or debit card is

issued by an issuer; or

(b) For a gift card, any person or organization to whom a physical or virtual gift

card is issued through a purchase, or who receives a gift card from a willing

party;

(3) "Credit card" means any instrument or device, whether known as a credit card,

credit plate, credit number or by any other name, issued by an issuer for the use of

the cardholder in obtaining money, goods, services or anything else of value on

credit;

(4) "Debit card" means any instrument or device, known by any name, issued with or

without fee by an issuer for the use of the cardholder in obtaining money, goods,

services, and anything else of value, payment of which is made against funds

previously deposited by cardholder;

(5) "E.F.T. system" means an electronic funds transfer system whereby funds are

transferred electronically from a cardholder's account to any other account;

(6) "Expired credit card" means a credit card which is no longer valid because the term

shown on it has expired;

(7) "Expired debit card" means a debit card which is no longer valid because the term

shown on it has expired;

(8) "Face value" means the highest monetary value listed on a gift card or its

packaging, or if no value is listed, two hundred fifty dollars ($250);

(9) "Gift card" means a card, code, or device, whether activated or unactivated, that:

(a) Is issued on a prepaid basis primarily for personal, family, or household

purposes in a specified amount, regardless of whether that amount may be

increased or reloaded in exchange for payment; and

(b) May be redeemable upon presentation by a cardholder at a single merchant or

group of merchants, or at multiple unaffiliated merchants within a payment

card network;

(10) "Gift card redemption information" means information unique to each gift card

which allows the cardholder to access, transfer, or spend the funds on that gift card;

(11) "Issuer" means the business organization or financial institution which issues a

credit, debit, or gift card or its duly authorized agent;

(12) "Merchant" means an owner or operator of any retail mercantile establishment or

any agent, employee, lessee, consignee, officer, director, franchisee, or independent

contractor of such owner or operator. "Merchant" also means:

(a) A person who receives from an authorized user of a payment card, or

someone the person believes to be an authorized user, a payment card or

information from a payment card, or what the person believes to be a payment

card or information from a payment card, as the instrument for obtaining,

purchasing, or receiving goods, services, money, or anything else of value

from the person; or

(b) A person engaged in the business of selling gift cards to consumers;

(13) "Participating party" means a business organization or financial institution, or any

duly authorized agent of such business organization or financial institution, which is

obligated by contract to acquire from a person, business organization, or financial

institution providing money, goods, services or anything else of value, a sales slip,

sales draft, or other instrument evidencing a credit, debit, or gift card transaction

and from whom the issuer is obligated by contract to acquire or participate in such

sales slip, sales draft or other instrument;

(14) "Payment card" means a credit card, charge card, debit card, or any other card that

is issued to an authorized card user and that allows the user to obtain, purchase, or

receive goods, services, money, or anything else of value from a merchant;

(15) "Presentation or presents" means those actions taken by a cardholder or any person

to introduce a credit or debit card into an automated banking device or merely

displaying or showing a credit, debit, or gift card to the issuer, a person or

organization providing money, goods, services, or anything else of value, or any

other entity with intent to defraud;

(16) "Receives" or "receiving" means acquiring possession or control of a credit or debit

card;

(17) "Reencoder" means an electronic device that places encoded information from the

magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a

different payment card;

(18) "Revoked credit card" means a credit card which is no longer valid because

permission to use it has been suspended or terminated by the issuer;

(19) "Revoked debit card" means a debit card which is no longer valid because

permission to use it has been suspended or terminated by the issuer; and

(20) "Scanning device" means a scanner, reader, or any other electronic device that is

used to access, read, scan, obtain, memorize, or store, temporarily or permanently,

information encoded on the magnetic strip or stripe of a payment card.