Payment cards.

Existing law generally provides for the regulation of credit and debit cards, including, but not limited to, limitations on the methods for offering and denying a credit card, requirements for listing the name appearing on a credit card, and restrictions on a person's liability for an unauthorized use of his or her credit or debit card. This bill would require retailers, starting April 1, 2016, except as specified, that accept a payment card, as defined, to provide a means of processing card-present payment card transactions involving payment cards equipped with embedded microchips or any other technology that is more secure than static magnetic stripe technology for card-present fraud prevention. The bill would also require specified contracts entered into between a financial institution and a payment card network, as those terms are defined, to include a provision requiring that 75% of new or replacement payment cards issued to a cardholder with a California mailing address have an embedded microchip or any other technology that is more secure than microchip technology for card-present fraud prevention. The bill would make legislative findings and declarations in this regard and would repeal these requirements on or before January 1, 2020, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.