0001| SENATE BILL 412
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| ROMAN M. MAES III
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0006|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO FINANCIAL INSTITUTIONS; ACCOUNTING FOR PUBLIC
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0012| ASSISTANCE BENEFIT CARDS IN THE REMOTE FINANCIAL SERVICE UNIT
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0013| ACT; AMENDING A SECTION OF THE NMSA 1978.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 58-16-3 NMSA 1978 (being Laws 1990,
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0017| Chapter 123, Section 3, as amended) is amended to read:
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0018| "58-16-3. DEFINITIONS.--
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0019| A. As used in the Remote Financial Service Unit
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0020| Act:
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0021| (1) "account" means an account maintained by a
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0022| cardholder or merchant with a financial institution, or with
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0023| an agency or department of the state, which term shall include
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0024| demand deposit, checking, negotiable order of withdrawal (NOW)
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0025| share, share draft, public assistance benefit or other
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0001| consumer or asset accounts or pre-authorized credit card
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0002| accounts;
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0003| (2) "account transfer" means a transaction
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0004| that enables movement of funds by a cardholder from one account
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0005| to another account within the same financial institution;
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0006| (3) "acquirer" means the intercept processor
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0007| that acquires financial data relating to a transaction from a
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0008| card acceptor or a merchant and puts the data into a network
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0009| system and means "agent acquirer" unless specifically indicated
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0010| otherwise;
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0011| (4) "agent acquirer" means any financial
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0012| institution acting as an authorized agent of the acquirer in
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0013| enabling financial data relating to a POS transaction to be
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0014| acquired by the acquirer from a card acceptor or merchant and
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0015| means "acquirer" unless specifically indicated otherwise;
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0016| (5) "ATM transaction" means any one or more of
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0017| the following transactions undertaken at an automated teller
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0018| machine (ATM):
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0019| (a) a cash advance from an account;
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0020| (b) a cash advance from an authorized
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0021| line of credit;
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0022| (c) a deposit to an account;
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0023| (d) a balance inquiry;
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0024| (e) an account transfer; and
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0025| (f) a normal financial transaction for a
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0001| cardholder involving the issuance of non-cash or
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0002| cash-equivalent items; provided, however, that normal financial
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0003| transactions at an ATM will expressly exclude any POS
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0004| transaction;
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0005| (6) "authorization" means the issuance of
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0006| approval, by or on behalf of the financial institution holding
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0007| the cardholder's account, to complete a transaction initiated
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0008| or authorized by the cardholder;
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0009| (7) "automated teller machine" or "ATM" means
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0010| an unmanned device that is activated by the cardholder through
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0011| a specially prepared card or by the transmission of a code via
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0012| a keyboard or keyset or both and is capable of one or more of
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0013| the following transactions:
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0014| (a) dispensing cash to any cardholder
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0015| from an account or against a preauthorized line of credit;
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0016| (b) accepting deposits;
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0017| (c) account transfers;
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0018| (d) satisfying a balance inquiry in the
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0019| cardholder's account or accounts; and
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0020| (e) conducting normal financial
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0021| transactions involving the issuance of non-cash or
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0022| cash-equivalent items; provided, however, that normal financial
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0023| transactions at an ATM will expressly exclude a transaction
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0024| that can only be initiated and completed at a POS terminal;
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0025| (8) "balance inquiry" means a transaction that
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0001| permits a cardholder to obtain the current balance of the
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0002| cardholder's account or accounts;
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0003| (9) "card" means a plastic card or other
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0004| instrument or any other access device issued by a financial
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0005| institution or by an agency or department of the state to a
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0006| cardholder that enables the cardholder to have access to and
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0007| that processes transactions against one or more accounts, and
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0008| the term shall be used when referring either to an ATM access
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0009| card, an EBT card, a debit card or a credit card identifying
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0010| a cardholder who has established a pre-approved credit line or
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0011| public assistance benefit with the issuer of the credit card
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0012| or EBT card;
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0013| (10) "card acceptor" means the party accepting
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0014| the card and presenting transaction data to an acquirer;
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0015| (11) "cardholder" means a person to whom a
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0016| card has been issued by a financial institution or who is
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0017| authorized to use the card;
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0018| (12) "cash advance" means any transaction
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0019| resulting in a cardholder receiving cash, whether initiated
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0020| through an ATM or a POS terminal;
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0021| (13) "chargeback" means the credit of all or a
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0022| portion of an amount previously posted to a cardholder's
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0023| account;
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0024| (14) "clearing account" means an account or
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0025| several accounts maintained for the purpose of settlement and
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0001| payment of fees to the network manager;
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0002| (15) "credit" means a claim for funds by the
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0003| cardholder for the credit of the cardholder's account and
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0004| provides details of funds acknowledged as payable by the
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0005| acquirer or card acceptor to the issuer for credit to the
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0006| cardholder's account;
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0007| (16) "credit card cash advance" means a cash
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0008| loan obtained by a cardholder against a pre-authorized line of
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0009| credit through presentation of a card;
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0010| (17) "data interchange" means the exchange of
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0011| transaction data, authorization requests, transaction records
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0012| or other data between intercept processors and acquirers and
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0013| issuers through a shared system or network;
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0014| (18) "debit" means a transaction initiated by
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0015| a cardholder that results in the debit to the cardholder's
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0016| account, through use of a card or otherwise, and results in a
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0017| claim for funds made by the acquirer or card acceptor against
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0018| the issuer;
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0019| (19) "director" means the director of the
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0020| financial institutions division of the regulation and licensing
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0021| department;
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0022| (20) "electronic benefit transfer" or "EBT"
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0023| means a system administered by an agency or department of the
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0024| state designed to provide a public assistance or other benefit
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0025| of monetary value provided by any department or agency of the
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0001| state through POS terminals;
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0002| (21) "electronic benefit transfer card" or
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0003| "EBT card" means a plastic card or other instrument or any
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0004| other access device issued by an agency or department of the
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0005| state to a cardholder that enables the cardholder to have
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0006| access to and that processes transactions against one or more
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0007| public assistance or other benefits accounts;
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0008| [(20)] (22) "electronic funds transfer" or
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0009| "EFT" means a system designed to facilitate the exchange of
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0010| monetary value via electronic media utilizing electronic or
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0011| mechanical signals or impulses or a combination of electronic
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0012| or mechanical impulses and audio, radio or microwave
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0013| transmissions;
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0014| [(21)] (23) "financial institution" means
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0015| an insured state or national bank, a state or federal savings
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0016| and loan association or savings bank, a state or federal credit
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0017| union or authorized branches of each of the foregoing;
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0018| [(22)] (24) "in-state financial
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0019| [institutions] institution" means a financial institution
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0020| authorized to engage in and engaged in business in New Mexico
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0021| and having its main office or a staffed branch within the
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0022| state;
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0023| [(23)] (25) "intercept processor" means
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0024| any electronic data processor operating for a financial
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0025| institution that passes transactions;
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0001| [(24)] (26) "issuer" means a financial
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0002| institution that issues cards or accepts transactions for a
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0003| card, is the acceptor of a transaction and is typically, but
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0004| not always, the entity that maintains the account relationship
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0005| with the cardholder;
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0006| [(25)] (27) "lobby or teller-line ATM"
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0007| means any ATM located within the lobby of a financial
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0008| institution or in its teller line, access to which is available
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0009| only during regular banking hours;
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0010| [(26)] (28) "merchant" means a seller of
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0011| goods or services, retailer or other person who, pursuant to an
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0012| agreement with a financial institution, agrees to accept or
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0013| causes its outlets to accept cards for EFT transactions when
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0014| properly presented, is usually a card acceptor and is a seller
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0015| of goods and services who is regularly and principally engaged
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0016| in the business of selling, leasing or renting goods, selling
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0017| or leasing services for any purpose or selling insurance,
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0018| whether the business is a wholesale or retail business and
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0019| whether the goods or services are for business, agricultural,
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0020| personal, family or household purposes. "Merchant" includes a
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0021| professional licensed by the state of New Mexico, but does not
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0022| include financial institutions;
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0023| [(27)] (29) "modem" is a contraction of
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0024| "modulator-demodulator" and means a functional unit that
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0025| enables digital data to be transmitted over analog transmission
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0001| facilities such as telephone lines, radio or microwave
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0002| transmissions;
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0003| [(28)] (30) "network" means a
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0004| computer-operated system of transmitting items and messages
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0005| between ATM or POS terminals, intercept processor and financial
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0006| institutions, and settling transactions between financial
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0007| institutions, and includes without limitation, ATMs, POS
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0008| terminals, all related computer hardware and software, modems,
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0009| logos and service marks;
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0010| [(29)] (31) "network manager" means the
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0011| person managing the business of a network;
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0012| [(30)] (32) "off-line" means not on-line;
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0013| [(31)] (33) "off-premise ATM" means ATMs
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0014| installed away from the building or lobby of a financial
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0015| institution by a distance of not less than five hundred feet;
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0016| [(32)] (34) "on-line" means a system in
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0017| which all input data enters the computer at a financial
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0018| institution, an intercept processor or the network from its
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0019| point of origin and that is capable of transmitting information
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0020| back to the point of origin after all input data is processed;
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0021| [(33)] (35) "on-premise ATM" means an ATM
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0022| that stands in or immediately adjacent to the financial
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0023| institution's building, such as in the financial institution's
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0024| lobby, through the wall or a drive-up ATM within five hundred
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0025| feet of the financial institution's building;
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0001| [(34)] (36) "person" means an individual,
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0002| partnership, joint venture, corporation or other legal entity
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0003| however organized;
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0004| [(35)] (37) "personal identification
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0005| number" or "PIN" means a series of numbers or letters selected
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0006| for or by the cardholder and used by the cardholder as a code
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0007| or password in conjunction with a card to perform a
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0008| transaction;
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0009| [(36)] (38) "point-of-sale terminal" or
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0010| "POS terminal" means an information processing device or
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0011| machine, located upon the premises occupied by one or more
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0012| merchants, through which transaction messages are initiated and
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0013| electronically transmitted to an acquirer to effectuate a POS
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0014| transaction and that accepts debit cards, [and] credit cards
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0015| and EBT cards;
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0016| [(37)] (39) "POS transaction" means any of
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0017| the following transactions undertaken at a POS terminal:
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0018| (a) purchases;
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0019| (b) purchases that include cash back to
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0020| the cardholder;
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0021| (c) cash advances at POS terminals;
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0022| (d) receipt of a public assistance
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0023| benefit at POS terminals;
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0024| [(d)] (e) returned item transaction
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0025| message resulting in a credit to the cardholder's account;
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0001| [(e)] (f) a credit;
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0002| [(f)] (g) an authorization;
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0003| [(g)] (h) chargebacks at POS
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0004| terminals;
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0005| [(h)] (i) card verification whereby
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0006| the validity of a card is determined at POS terminals;
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0007| [(i)] (j) balance inquiries at POS
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0008| terminals; and
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0009| [(j)] (k) force post financial
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0010| advice at POS terminals whereby any other transaction
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0011| authorized by an issuer-approved stand-in processor requires
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0012| settlement resulting in a debit to the cardholder's account.
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0013| Nothing in this paragraph shall be construed to include
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0014| credit card transactions;
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0015| (40) "public assistance benefit" means a
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0016| benefit of monetary value available from various state and
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0017| federal public benefit programs administered through or
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0018| enforced by an agency or department of the state;
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0019| [(38)] (41) "purchase" means a transaction
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0020| that, if approved, results in a debit transaction for the
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0021| payment of goods and services or may include cash paid to the
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0022| cardholder of some part of the amount of the transaction;
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0023| [(39)] (42) "receipt" means a hard-copy
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0024| description of a transaction:
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0025| (a) for the purposes of the Remote
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0001| Financial Service Unit Act, if the transaction is an ATM
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0002| transaction, the receipt shall contain, at a minimum: 1) the
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0003| date of the ATM transaction; 2) the amount of the ATM
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0004| transaction, if any; 3) the account number; 4) the type of
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0005| account accessed; 5) the location of the ATM used in the ATM
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0006| transaction; 6) the identity of any party or account to which
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0007| funds are transferred; and 7) the type of ATM transaction
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0008| completed; and
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0009| (b) for the purposes of the Remote
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0010| Financial Service Unit Act, if the transaction is a POS
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0011| transaction, the receipt shall contain, at a minimum: 1) the
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0012| date of the POS transaction; 2) the amount of the POS
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0013| transaction, if any; 3) the account number; 4) the type of
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0014| account accessed; 5) the merchant's name and location; and
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0015| 6) the type of POS transaction completed;
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0016| [(40)] (43) "remote financial service
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0017| unit" means a POS terminal or an ATM;
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0018| [(41)] (44) "returned item transaction
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0019| message" means a credit message generated by the acquirer or by
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0020| the merchant that returns the value of the returned item to the
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0021| cardholder's account;
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0022| [(42)] (45) "settlement" means the process
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0023| by which funds are transferred between financial institutions,
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0024| intercept processors or networks in the flow of a transaction
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0025| or in the payment of fees associated with the transaction;
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0001| [(43)] (46) "shared ATM or POS terminals"
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0002| means ATM or POS terminals that are shared among financial
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0003| institutions by formal agreement for the purposes of cardholder
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0004| convenience, reduction of capital investment and marketing
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0005| advantage;
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0006| [(44)] (47) "single subscriber terminal"
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0007| means any terminal or set of terminals used to connect a single
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0008| customer of a financial institution to [its] his financial
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0009| institution through which EFT messages are sent and completed,
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0010| other than transactions;
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0011| [(45)] (48) "switch" means a routing
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0012| mechanism and any device attached thereto that is necessary for
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0013| the processing of a transaction used to communicate information
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0014| and transactions among participating financial institutions or
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0015| their intercept processors in a shared system or network;
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0016| [(46)] (49) "transaction" means a
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0017| collection of electronic messages concluded by:
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0018| (a) a debit to or a credit from an
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0019| account;
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0020| (b) a balance inquiry;
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0021| (c) the consummation of a normal
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0022| financial transaction; or
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0023| (d) a rejected attempt of any one of
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0024| those matters provided in Subparagraphs (a) through (c) of this
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0025| paragraph;
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0001| [(47)] (50) "unauthorized use of the card
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0002| of another" means the utilization of the card in or through a
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0003| remote financial service unit to affect the balance of or
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0004| obtain information concerning the account of the cardholder by
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0005| a person other than the cardholder, which person does not have
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0006| the permission of the cardholder for such use; and
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0007| [(48)] (51) "unauthorized withdrawal from
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0008| the account of another" means the debiting of or removal of
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0009| funds from a cardholder's account, accomplished by means of the
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0010| utilization of a remote financial service unit by a person
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0011| other than the cardholder, which person does not have actual,
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0012| implied or apparent authority for the debiting or removal and
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0013| from which debiting or removal the cardholder receives no
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0014| benefit.
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0015| B. [(1)] Any of the information provided pursuant
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0016| to Subparagraphs (a) and (b) of Paragraph [(39)] (42) of
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0017| Subsection A of this section may be provided using codes,
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0018| numbers or other uniform explanations so long as they are
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0019| explained elsewhere on the receipt.
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0020| [(2)] C. No receipt shall be required in any
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0021| transaction involving a negotiable instrument that will itself
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0022| become a receipt.
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0023| [C.] D. Any term used in the Remote Financial
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0024| Service Unit Act but not specifically defined shall have the
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0025| meaning given to that term by the Uniform Commercial Code."
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0001|
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