434.560 Definitions for KRS 434.550 to 434.730.
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/ky/chapter-434/434-560A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in KRS 434.550 to 434.730, unless the context otherwise requires:
(1)"Automated banking device" means any machine which when properly activated by
a credit card, debit card or personal identification code will perform any of the
following services:
(a)Dispense money as a debit to the cardholder's savings or checking account;
(b)Print the cardholder's savings or checking account balances on a statement;
(c)Transfer funds between a cardholder's savings and checking account;
(d)Accept payments on a cardholder's loan;
(e)Dispense cash advances on an open end credit or a revolving charge
agreement;
(f)Accept deposits to a customer's savings or checking account;
(g)Receive inquiries of verification of checks and dispense information which
verifies that funds are available to cover said checks; or
(h)Cause money to be transferred electronically from a cardholder's account to
an account held by any business, firm, retail merchant, corporation, or any
other organization;
(2)"Cardholder" means:
(a)For a credit or debit card, the person or organization named on the face of a
credit or debit card to whom or for whose benefit the credit or debit card is
issued by an issuer; or
(b)For a gift card, any person or organization to whom a physical or virtual gift
card is issued through a purchase, or who receives a gift card from a willing
party;
(3)"Credit card" means any instrument or device, whether known as a credit card,
credit plate, credit number or by any other name, issued by an issuer for the use of
the cardholder in obtaining money, goods, services or anything else of value on
credit;
(4)"Debit card" means any instrument or device, known by any name, issued with or
without fee by an issuer for the use of the cardholder in obtaining money, goods,
services, and anything else of value, payment of which is made against funds
previously deposited by cardholder;
(5)"E.F.T. system" means an electronic funds transfer system whereby funds are
transferred electronically from a cardholder's account to any other account;
(6)"Expired credit card" means a credit card which is no longer valid because the term
shown on it has expired;
(7)"Expired debit card" means a debit card which is no longer valid because the term
shown on it has expired;
(8)"Face value" means the highest monetary value listed on a gift card or its
packaging, or if no value is listed, two hundred fifty dollars ($250);
(9)"Gift card" means a card, code, or device, whether activated or unactivated, that:
(a)Is issued on a prepaid basis primarily for personal, family, or household
purposes in a specified amount, regardless of whether that amount may be
increased or reloaded in exchange for payment; and
(b)May be redeemable upon presentation by a cardholder at a single merchant or
group of merchants, or at multiple unaffiliated merchants within a payment
card network;
(10)"Gift card redemption information" means information unique to each gift card
which allows the cardholder to access, transfer, or spend the funds on that gift card;
(11)"Issuer" means the business organization or financial institution which issues a
credit, debit, or gift card or its duly authorized agent;
(12)"Merchant" means an owner or operator of any retail mercantile establishment or
any agent, employee, lessee, consignee, officer, director, franchisee, or independent
contractor of such owner or operator. "Merchant" also means:
(a)A person who receives from an authorized user of a payment card, or
someone the person believes to be an authorized user, a payment card or
information from a payment card, or what the person believes to be a payment
card or information from a payment card, as the instrument for obtaining,
purchasing, or receiving goods, services, money, or anything else of value
from the person; or
(b)A person engaged in the business of selling gift cards to consumers;
(13)"Participating party" means a business organization or financial institution, or any
duly authorized agent of such business organization or financial institution, which is
obligated by contract to acquire from a person, business organization, or financial
institution providing money, goods, services or anything else of value, a sales slip,
sales draft, or other instrument evidencing a credit, debit, or gift card transaction
and from whom the issuer is obligated by contract to acquire or participate in such
sales slip, sales draft or other instrument;
(14)"Payment card" means a credit card, charge card, debit card, or any other card that
is issued to an authorized card user and that allows the user to obtain, purchase, or
receive goods, services, money, or anything else of value from a merchant;
(15)"Presentation or presents" means those actions taken by a cardholder or any person
to introduce a credit or debit card into an automated banking device or merely
displaying or showing a credit, debit, or gift card to the issuer, a person or
organization providing money, goods, services, or anything else of value, or any
other entity with intent to defraud;
(16)"Receives" or "receiving" means acquiring possession or control of a credit or debit
card;
(17)"Reencoder" means an electronic device that places encoded information from the
magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a
different payment card;
(18)"Revoked credit card" means a credit card which is no longer valid because
permission to use it has been suspended or terminated by the issuer;
(19)"Revoked debit card" means a debit card which is no longer valid because
permission to use it has been suspended or terminated by the issuer; and
(20)"Scanning device" means a scanner, reader, or any other electronic device that is
used to access, read, scan, obtain, memorize, or store, temporarily or permanently,
information encoded on the magnetic strip or stripe of a payment card.