H. B. 2636
(By Delegates Evans, Schadler, Rowan and Leggett)
[Introduced February 24, 2005; referred to the
Committee on Banking and Insurance the the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §31A-4-46, relating
to limiting the liability of a West Virginia merchant for
credit card fraud over the internet; limiting rates charged;
and requiring credit card companies to report annually to the
Attorney General on prosecutions of credit card fraud cases
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
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.
§31A-4-46. Limiting charges to state merchants for fraudulent
credit card transactions over the internet;
requiring annual reports to Attorney General.
(a) A banking institution, that issues credit cards that are
fraudulently presented to any person or entity licensed to do
business in West Virginia and engaged in any business activity over
the internet, may not charge the West Virginia merchant more than
two hundred fifty dollars for each fraudulent internet
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 issues credit cards that are
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 internet 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 internet in other states.
(c) A banking institution, that issues credit cards that are
presented to any person or entity licensed to do business in West
Virginia and engaged in any business activity over the internet,
and an internet transaction results in a fraudulent use of the
credit card, must provide the Attorney General of West Virginia
with an annual report of credit card fraud cases involving state
businesses and internet sales.
NOTE: The purpose of this bill is to protect West Virginia
merchants from unreasonable charges by banking institutions that issue credit cards, when the banking institutions do not cooperate
in the investigation and prosecution of credit card frauds on sales
over the internet.
This section is new; therefore, strike-throughs and
underscoring have been omitted.