AN ACT relating to merchant processing agreements.

Create a new section of KRS Chapter 365 to establish requirements for merchant processing agreements; prohibit credit card processors from assessing or charging a fee, fine, or penalty in certain circumstances; require credit card processors to make certain disclosures and comply with certain contracting requirements; establish penalties and exemptions; provide for construction of section; provide that Act applies to contracts entered on or after the effective date.

Introduced: February 25, 2026

Last action: March 4, 2026

To Banking & Insurance (H)

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This bill sets rules for the agreements that businesses use when they accept credit card payments. It would ban credit card processors from charging certain fees, fines, or penalties, and would require them to clearly disclose terms and follow specific contracting standards. The rules would apply to new contracts signed after the law takes effect. Who it may affect: businesses and merchants that accept credit card payments, and the credit card processing companies that serve them.

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