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Can you summarize MDCM Com. Law, Title 12, Subtitle 14?
Short Summary
The provided legal document content pertains to merchant processing agreements between business entities and credit card processors. It defines the term ‘credit card processor’ as a person who processes credit card or electronic commerce transactions on behalf of a business entity for a fee. The definition includes merchant services providers, financial institutions, independent sales organizations, and subsidiaries or affiliates of these entities. The document states that a merchant processing agreement is a contract between a credit card processor and a business entity, where the business entity agrees to pay the credit card processor for processing credit card or electronic commerce transactions on its behalf. The document specifies that this subtitle does not apply to merchant processing agreements that can be terminated without assessment of fees, fines, penalties, or liquidated damages. It also does not apply to agreements entered into by business entities with 50 or more employees or those estimated to generate more than $2,000,000 in credit card or electronic commerce transactions annually. The document further outlines requirements for the merchant processing agreement, such as disclosure of early termination fees, expiration and renewal dates, and customer service contact information. These details must be provided on the signature page of the agreement and initialed separately by the business entity. Additionally, the credit card processor is obligated to provide a copy of the agreement to the business entity in electronic or paper form at the time of signing. The document mentions that if a complaint about a violation of a specific section of this subtitle is filed with the Commissioner of Financial Regulation, the Commissioner may investigate the complaint and utilize investigative and enforcement powers provided under Title 2, Subtitle 1 of the Financial Institutions Article.
Whom does it apply to?
Business entities and credit card processors
What does it govern?
Merchant processing agreements between business entities and credit card processors
What are exemptions?
1. Merchant processing agreements that may be terminated without assessment of fees, fines, penalties, or liquidated damages. 2. Merchant processing agreements entered into by business entities with 50 or more employees or reasonably estimated to generate more than $2,000,000 in credit card or electronic commerce transactions each year.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Maryland