A BILL TO BE ENTITLED
AN ACT to prohibit the automatic renewal of merchant credit card processing contracts.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 1 of Chapter 22B of the General Statutes is amended by adding a new section to read:
"§ 22B‑4. Automatic renewal of merchant credit card processing contracts.
Any provision in a contract to provide credit card or other payment system processing for merchants that provides for the automatic renewal of the contract is against public policy and is void and unenforceable. Nothing in this section shall be construed to prohibit the renewal of contracts following a 60-day notice of an upcoming expiration from the processing company and an acceptance of the renewal signed by the merchant."
SECTION 2.  This act becomes effective October 1, 2011, and applies to contracts entered into on or after that date and to contracts currently scheduled to renew automatically on or after that date.