In this subtitle the following words have the meanings indicated. “Credit card processor” means a person that processes credit card or electronic commerce transactions on behalf of a business entity for a fee. “Credit card processor” includes: A merchant services provider; A financial institution; An independent sales organization; and Any subsidiary or affiliate of an entity listed in items (i) through (iii) of this paragraph. “Merchant processing agreement” means a contract between a credit card processor and a business entity under which the business entity agrees to pay the credit card processor for processing credit card or electronic commerce transactions on behalf of the business entity.

This subtitle does not apply to a merchant processing agreement between a credit card processor and a business entity: That may be terminated without assessment of fees, fines, penalties, or liquidated damages; or If at the time of entry into the merchant processing agreement, the business entity employs 50 or more employees or reasonably estimates that it will generate more than $2,000,000 in credit card or electronic commerce transactions each year.

If a business entity cancels a merchant processing agreement before the expiration of the initial term agreed on by the credit card processor and the business entity, the credit card processor may not assess or charge a fee, fine, or penalty that exceeds $500. If a business entity terminates the merchant processing agreement after the expiration of the initial term agreed on by a credit card processor and a business entity, the credit card processor may not assess a fee, fine, or penalty, unless a credit card processor and a business entity have entered into a separate renewal merchant processing agreement. Subject to subsection (d) of this section, a merchant processing agreement shall disclose clearly and conspicuously in bold, 12 point font the following information: The amount of any early termination fee, fine, penalty, or liquidated damages that may be assessed by the credit card processor for termination of a merchant processing agreement before the expiration of the initial term; The expiration date of the merchant processing agreement; The renewal date of the merchant processing agreement; and The customer service contact information of the credit card processor, including telephone number, mailing address, and e–mail address. The information required under subsection (c) of this section shall be: Provided on the signature page of a merchant processing agreement; and Initialed separately by the business entity. The credit card processor shall provide a copy of the merchant processing agreement in electronic or paper form to the business entity at the time the business entity signs the merchant processing agreement.

If a complaint about a violation of § 12–1403 of this subtitle is filed with the Commissioner of Financial Regulation, the Commissioner may investigate the complaint and use any of the investigative and enforcement powers provided under Title 2, Subtitle 1 of the Financial Institutions Article.