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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5199 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5199

 To authorize the Board of Governors of the Federal Reserve System to 
 promulgate regulations regarding interchange transaction fees and to 
amend the Truth in Lending Act to prohibit certain restrictions put in 
                     place by credit card networks.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2010

  Mr. Welch introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
 To authorize the Board of Governors of the Federal Reserve System to 
 promulgate regulations regarding interchange transaction fees and to 
amend the Truth in Lending Act to prohibit certain restrictions put in 
                     place by credit card networks.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Check Parity Act of 
2010''.

SEC. 2. REGULATORY AUTHORITY OF THE BOARD OF GOVERNORS OF THE FEDERAL 
              RESERVE SYSTEM FOR ELECTRONIC DEBIT TRANSACTIONS.

    (a) Finding.--The Congress finds that electronic debit transactions 
serve as a functional replacement for check transactions.
    (b) Rulemaking.--
            (1) In general.--The Board shall have authority to 
        promulgate rules regarding any interchange transaction fee that 
        is charged with respect to an electronic debit transaction.
            (2) Considerations.--Rules promulgated by the Board 
        pursuant to paragraph (1) shall be based on--
                    (A) historic policies implemented by the Board that 
                have ensured that checks clear at par; and
                    (B) the Congressional finding under subsection (a) 
                that electronic debit transactions serve as a 
                functional replacement for check transactions.
    (c) Exemptions.--The Board may exempt financial institutions, 
including those regulated by the National Credit Union Administration, 
that, together with affiliates, have assets of less than $1,000,000,000 
from the rules promulgated by the Board pursuant to subsection (b).
    (d) Definitions.--For purposes of this section:
            (1) Board.--The term ``Board'' means the Board of Governors 
        of the Federal Reserve System.
            (2) Electronic debit transaction.--The term ``electronic 
        debit transaction'' means a transaction in which a person uses 
        a debit card or other device that has been approved for use in 
        a payment card network to debit an account for the purpose of 
        transferring money between accounts or obtaining goods or 
        services.
            (3) Interchange transaction fee.--The term ``interchange 
        transaction fee'' means any fee established, charged, or 
        received by an issuer or a payment card network on a per-
        transaction basis that has been established for the purpose of 
        compensating the issuer or payment card network for its role in 
        authorizing, clearing, settling, or otherwise processing an 
        electronic debit transaction.
            (4) Issuer.--The term ``issuer'' means a financial 
        institution that issues cards or other devices that have been 
        approved for use in a payment card network.
            (5) Payment card network.--The term ``payment card 
        network'' means an entity that directly, or through licensed 
        members, processors, or agents, provides the proprietary 
        services, infrastructure and software that route information 
        and data to conduct transaction authorization, clearance and 
        settlement, and that a person is required to access in order to 
        accept a specific brand of credit card, debit card, prepaid 
        card or similar device as a form of payment.

SEC. 3. LIMITATION ON CREDIT CARD NETWORK RESTRICTIONS.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by adding at the end the following new 
section:
``Sec. 140B. Limitation on credit card network restrictions.
    ``(a) In General.--A credit card network may not, directly or 
through any agent, processor, or licensed member of the network, by 
contract or otherwise, inhibit the ability of any person--
            ``(1) to set a minimum or maximum dollar value for such 
        person's acceptance of any form of payment; or
            ``(2) to offer a discount, benefit, or anything else of 
        value to customers in order to create an incentive for 
        customers to pay such person using a form of payment that 
        carries lower transaction fees or costs for such person.
    ``(b) Credit Card Network Defined.--For purposes of this section, 
the term `credit card network' means an entity that directly, or 
through licensed members, processors, or agents, provides the 
proprietary services, infrastructure, and software that route 
information and data to facilitate transaction authorization, 
clearance, and settlement that a person must access in order to accept 
a specific brand of general-purpose credit card as payment for goods or 
services.''.
    (b) Clerical Amendment.--The table of sections for chapter 2 of the 
Truth in Lending Act is amended by inserting after the item relating to 
section 140A the following new item:

``140B. Limitation on credit card network restrictions''.
                                 <all>
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