The "Chargeback Fairness and Transparency Act" aims to protect merchants and consumers during chargeback disputes by prohibiting financial institutions from charging fees until the dispute is resolved. The bill introduces a new section, 37-1-320, to the South Carolina Code of Laws, which stipulates that financial institutions must provide written notice detailing the reasoning, evidence, and applicable appeals procedure related to the chargeback dispute. The Department of Consumer Affairs is designated to oversee the implementation and ensure compliance with this new regulation.

This legislation is designed to enhance transparency and fairness in the chargeback process, ensuring that both merchants and consumers are not unfairly burdened by fees while disputes are ongoing. The act will take effect upon approval by the Governor, reinforcing the commitment to consumer protection and fair business practices in South Carolina.

Statutes affected:
12/17/2025: 37-1-320
Latest Version: 37-1-320