Kentucky legislation · 2026 Regular Session
Kentucky HB736: AN ACT relating to merchant processing agreements.
Status: In committee, March 4, 2026
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.
What the bill says
An act relating to merchant processing agreements.
From the introduced text:
AN ACT relating to merchant processing agreements. Be it enacted by the General Assembly of the Commonwealth of Kentucky: SECTION 1. A NEW SECTION OF KRS CHAPTER 365 IS CREATED TO READ AS FOLLOWS: (1) As used in this section: (a) "Credit card processor" or "processor": 1. Means a person that processes credit card or electronic commerce transactions on behalf of a business for a fee; and 2. b. A financial institution; c. An independent sales organization; and d. Any subsidiary or affiliate of a person listed in this subparagraph; and (b) "Merchant processing agreement" or "agreement": 1. Means a contract between a credit card processor and a business under which the business agrees to pay the credit card processor for processing credit card or electronic commerce transactions on behalf of the business; and 2. Includes any gift or sale of equipment or personal property that is made to a business from a credit card processor in connection with an agreement by the credit card processor to process credit card or electronic commerce transactions on behalf of the business. (2) Except as provided in subsection (5) of this section, a credit card processor shall not assess or charge a business a fee, fine, or penalty, including liquidated damages, under a merchant processing agreement: (a) That exceeds the greater of the …
Sponsors
- Nick Wilson (R, HD-082) · primary sponsor
- Gordon, Deanna (R, HD-081)
- Steven Rudy (R, HD-001)
Latest actions
- : to Banking & Insurance (H)
- : adopted by voice vote
- : to Committee on Committees (H)
- : introduced in House
Subjects: Commerce, Loans, Credit, Interest, And Usury, Trade Practices And Retailing, Small Business, Sales, Contracts, Banks And Financial Institutions
Common questions
- What is HB736?
- HB736 is a bill in the Kentucky Legislature (2026 Regular Session): AN ACT relating to merchant processing agreements.
- What does HB736 do?
- In its own words: An act relating to merchant processing agreements.
- What is the status of HB736?
- In committee as of March 4, 2026. Latest action: to Banking & Insurance (H) (March 4, 2026).
- Who sponsored HB736?
- Nick Wilson (R, HD-082), with 2 co-sponsors.
- Where is the official record for HB736?
- On the Kentucky Legislature website: https://apps.legislature.ky.gov/record/26rs/hb736.html
Source: official Kentucky record. Tracked by Delilah, AI for legislation across all 50 states and Congress.