,,ii #aaith ,,congress #b;d ,session ,s4 #cfbc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ac1 #bjbf,mr4 ,marshall 7for himself1 ,mr4 ,durbin1 and ,mr4 ,welch7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,electronic ,fund ,transfer ,act to require the ,board of ,governors of the ,federal ,reserve system to prescribe regulations relating to network competition in credit card transactions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,credit ,card ,competition ,act of #bjbf4 #b4 ,competition in credit card transactions 7a7 ,in general ,section #iba of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afico-#b7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by redesignating paragraphs 7#b71 7#c71 and 7#d7 as paragraphs 7#c71 7#d71 and 7#e71 respectively2 and 7,b7 by inserting after paragraph 7#a7 the following3 7#b7 ,competition in credit card transactions 7,a7 ,no exclusive network 7i7 ,in general ,not later than #a year after the date of enactment of the ,credit ,card ,competition ,act of #bjbf1 the ,board shall prescribe regulations providing that a covered card issuer or payment card network shall not directly or through any agent1 processor1 or licensed member of a payment card network1 by contract1 requirement1 condition1 penalty1 technological specification1 or otherwise1 restrict1 on any credit card issued by a covered card issuer1 the number of payment card networks on which an electronic credit transaction may be processed to-- 7,i7 #a such network2 7,,ii7 #b or more such networks1 if-- 7aa7 each such network is owned1 controlled1 or otherwise operated by-- 7,,aa7 affiliated persons2 or 7,,bb7 networks affiliated with such issuer2 or 7bb7 any such network is identified on the list established and updated under subparagraph 7,d72 or 7,,iii7 subject to clause 7ii71 the #b such networks that hold the #b largest market shares with respect to the number of credit cards issued in the ,united ,states by licensed members of such networks 7and enabled to be processed through such networks71 as determined by the ,board on the date on which the ,board prescribes the regulations4 7ii7 ,determinations by ,board 7,i7 ,in general ,the ,board1 not later than #c years after the date on which the regulations prescribed under clause 7i7 take effect1 and not less frequently than once every #c years thereafter1 shall determine whether the #b networks identified under clause 7i77,,iii7 have changed1 as compared with the most recent such determination by the ,board4 7,,ii7 ,effect of determination ,if the ,board1 under subclause 7,i71 determines that the #b networks described in clause 7i77,,iii7 have changed 7as compared with the most recent such determination by the ,board71 clause 7i77,,iii7 shall no longer have any force or effect4 7,b7 ,no routing restrictions ,not later than #a year after the date of enactment of the ,credit ,card ,competition ,act of #bjbf1 the ,board shall prescribe regulations providing that a covered card issuer or payment card network shall not-- 7i7 directly or through any agent1 processor1 or licensed member of the network1 by contract1 requirement1 condition1 penalty1 or otherwise-- 7,i7 inhibit the ability of any person who accepts credit cards for payments to direct the routing of electronic credit transactions for processing over any payment card network that-- 7aa7 may process such transactions2 and 7bb7 is not on the list established and updated by the ,board under subparagraph 7,d72 7,,ii7 require any person who accepts credit cards for payments to exclusively use1 for transactions associated with a particular credit card1 an authentication1 tokenization1 or other security technology that cannot be used by all of the payment card networks that may process electronic credit transactions for that particular credit card2 or 7,,iii7 inhibit the ability of another payment card network to handle or process electronic credit transactions using an authentication1 tokenization1 or other security technology for the processing of those electronic credit transactions2 or 7ii7 impose any penalty or disadvantage1 financial or otherwise1 on any person for-- 7,i7 choosing to direct the routing of an electronic credit transaction over any payment card network on which the electronic credit transaction may be processed2 or 7,,ii7 failing to ensure that a certain number1 or aggregate dollar amount1 of electronic credit transactions are handled by a particular payment card network4 7,c7 ,applicability ,the regulations prescribed under subparagraphs 7,a7 and 7,b7 shall not apply to a credit card issued in a #c-party payment system model4 7,d7 ,designation of national security risks 7i7 ,in general ,not later than #a year after the date of enactment of the ,credit ,card ,competition ,act of #bjbf1 the ,board1 in consultation with the ,secretary of the ,treasury1 shall prescribe regulations to establish a public list of any payment card network-- 7,i7 the processing of electronic credit transactions by which is determined by the ,board to pose a risk to the national security of the ,united ,states2 or 7,,ii7 that is owned1 operated1 or sponsored by a foreign state entity4 7ii7 ,updating of list ,not less frequently than once every #b years after the date on which the ,board establishes the public list required under clause 7i71 the ,board1 in consultation with the ,secretary of the ,treasury1 shall update that list4 7,e7 ,definitions ,in this paragraph-- 7i7 the terms card issuer and creditor have the meanings given the terms in section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb72 7ii7 the term covered card issuer means a card issuer that1 together with the affiliates of the card issuer1 has assets of more than #ajj1jjj1jjj1jjj2 7iii7 the term credit card issued in a #c-party payment system model means a credit card issued by a card issuer that is-- 7,i7 the payment card network with respect to the credit card2 or 7,,ii7 under common ownership with the payment card network with respect to the credit card2 7iv7 the term electronic credit transaction-- 7,i7 means a transaction in which a person uses a credit card2 and 7,,ii7 includes a transaction in which a person does not physically present a credit card for payment1 including a transaction involving the entry of credit card information onto1 or use of credit card information in conjunction with1 a website interface or a mobile telephone application2 and 7v7 the term licensed member includes1 with respect to a payment card network-- 7,i7 a creditor or card issuer that is authorized to issue credit cards bearing any logo of the payment card network2 and 7,,ii7 any person1 including any financial institution and any person that may be referred to as an acquirer1 that is authorized to-- 7aa7 screen and accept any person into any program under which that person may accept1 for payment for goods or services1 a credit card bearing any logo of the payment card network2 7bb7 process transactions on behalf of any person who accepts credit cards for payments2 and 7cc7 complete financial settlement of any transaction on behalf of a person who accepts credit cards for payments4 2 and 7#b7 in subsection 7d77#a71 by inserting 1 except that the ,bureau shall not have authority to enforce the requirements of this section or any regulations prescribed by the ,board under this section after section #iah4 7b7 ,effective date ,each set of regulations prescribed by the ,board of ,governors of the ,federal ,reserve ,system under paragraph 7#b7 of section #iba7;b7 of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afico-#b7;b771 as amended by subsection 7a7 of this section1 shall take effect on the date that is #ahj days after the date on which the ,board prescribes the final version of that set of regulations4