A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "CHARGEBACK FAIRNESS AND TRANSPARENCY ACT" BY ADDING SECTION 37-1-320 SO AS TO PROVIDE THAT FINANCIAL INSTITUTIONS MAY NOT CHARGE FEES DURING A CHARGEBACK DISPUTE.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "Chargeback Fairness and Transparency Act."

 

SECTION 2.  Chapter 1, Title 37 of the S.C. Code is amended by adding:

 

    Section 37-1-320.  (A) In the event of a chargeback dispute, a financial institution may not charge fees on merchants or consumers until the chargeback dispute is resolved and written notice is provided. The written notice must include reasoning, evidence, and the applicable appeals procedure. The Department of Consumer Affairs shall oversee the implementation of this section and enforce compliance.

    (B) For purposes of this section, "chargeback dispute" means a dispute over a debit or credit card transaction.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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