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KY HB736

Bill

Status

Introduced

2/25/2026

Primary Sponsor

Nicolas Wilson

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Caps early termination fees for merchant processing agreements at the greater of $500 or the unreimbursed cost of equipment provided under the agreement
  • Prohibits credit card processors from charging fees or penalties for declining to renew or enter into subsequent agreements
  • Requires processors to disclose termination fees, expiration dates, renewal dates, and customer service contact information in bold 12-point font on the signature page, with business signatory initials required next to this information
  • Exempts agreements that allow termination without fees, and businesses with more than $2,500,000 in annual card transactions and more than 30 employees
  • Violations render termination fee provisions void and unenforceable; applies to contracts entered on or after the effective date

Legislative Description

AN ACT relating to merchant processing agreements.

Small Business

Last Action

to Banking & Insurance (H)

3/4/2026

Committee Referrals

Banking and Insurance3/4/2026
Committee On Committees2/25/2026

Full Bill Text

No bill text available