Limit imposed

(a)

In general

Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 127A the following new section:

127B.

Limit on certain interchange fees.

(a)

Definitions

For purposes of this section, the following definitions shall apply: (1)

Charge card

The term charge card has the same meaning as in section 127(c)(4)(E). (2)

Debit card

The term debit card means any card or other device issued by a financial institution (as defined in section 903(8)) to a consumer for use in initiating electronic fund transfers (as defined in section 903(6)) from the account of the consumer at such financial institution for the purpose of transferring money between accounts or obtaining money, property, labor, or services. (3)

Electronic payment system network

The term electronic payment system network means a network that provides, through licensed members, processors, or agents— (A)for the issuance of payment cards (by credit card issuers in the case of a credit card, charge card issuers in the case of a charge card, or financial institutions (as defined in section 903(8)) in the case of debit cards) bearing any logo of the network; (B)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 payment cards bearing any logo of the network as payment for goods and services; and (C)for the screening and acceptance of merchants into the network in order to allow such merchants to accept payment cards bearing any logo of the network as payment for goods and services. (4)

Licensed member

The term licenced member, in connection with any electronic payment system network, includes— (A)any creditor or charge card issuer that is authorized to issue credit cards or charge cards bearing any logo of the network; (B)any financial institution (as defined in section 903(8)) that is authorized to issue debit cards to consumers who maintain accounts at such institution; and (C)any person, including any financial institution, on occasion referred to as an acquirer that is authorized— (i)to screen and accept merchants into any program under which any payment card bearing any logo of such network may be accepted by the merchant for payment for goods or services; (ii)to process transactions on behalf of any such merchant for payment; and (iii)to complete financial settlement of any such transaction on behalf of such merchant. (5)

Merchant

The term merchant means any person in the business of selling or providing any good or service for consideration. (6)

Payment card

The term payment card means a credit card , a charge card, or a debit card. (b)

Excess charges prohibited in sales of motor vehicle fuel

An electronic payment system network may not, directly or through any agent, processor, or licensed member of the network, require or permit any merchant to pay any interchange, processing, or other fee in connection with any payment card transaction involving the purchase by a consumer of any motor vehicle fuel in any amount in excess of the amount that is equal to 1 percent of the cost of each gallon of such fuel. (c)

Enforcement

Subsections (a), (b), and (h) of section 130 shall be applied for purposes of this section by substituting the term an electronic payment system network, or any agent, processor, or licensed member of any such network for creditor each place such term appears in such subsections. (d)

Sunset

This section shall not apply to the sale of any motor vehicle fuel after the end of the 6-month period beginning on the date of the enactment of the Gas Pump Fair Payment Act of 2008.

(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 127A the following new item:

127B. Limit on certain interchange fees.