BILL NUMBER: S6299
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the general business law, in relation to limiting the
liability of a debit cardholder for unauthorized use of a debit card
 
PURPOSE:
To limit the liability of a debit cardholder in the event an unauthor-
ized use of the card occurs as a result of fraud or theft.
 
SUMMARY OF PROVISIONS:
Amends Section 512 of the general business law as amended by chapter 556
of the laws of 1987 to require that a cardholder shall be liable for the
unauthorized use of a debit card only if:
- the card is a debit card the holder has used, received, or requested,
or authorized another to use.
- the liability of the cardholder does not exceed fifty dollars
- the card issuer gives the holder adequate notice of the potential
liability
- the issuer has provided the holder with a means by which to inform the
issuer of the loss or theft of the card
- the unauthorized use occurs before the issuer is informed of the loss
or theft.
- the issuer has provided an accurate method by which to identify the
cardholder as the person authorized to use it.
 
EXISTING LAW:
Gasoline stations are not currently subject to this requirement. The
department of state is not currently required to maintain a toll free
number related to the retail sale of motor fuel.
 
JUSTIFICATION:
In recent years debit cards have been gaining popularity as a great way
of avoiding the excess spending that can be a result of credit card use,
all the while allowing for an increase in self-accountability and disci-
pline.
Like credit cards, debit cards have grown to be increasingly more
acceptable worldwide. Unfortunately, the expansion of debit card accept-
ability has not been accompanied by the same protections that apply to
credit card holders worldwide.
Currently, there are no protections for a business whose debit card has
been used fraudulently. By rounding out the law, a small business will
be extended the same protections as an individual. This will be one more
step in making New York a more business-friendly environment, which is
one of the main components in the State's road to recovery.
 
LEGISLATIVE HISTORY:
2021-22 REFERRED TO SENATE CONSUMER PROTECTION
2019-20 REFERRED TO SENATE CONSUMER PROTECTION
 
FISCAL IMPLICATIONS:
None
 
LOCAL FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect in 90 days after it shall have become a law.

Statutes affected:
S6299: 512 general business law