(a) Except as otherwise provided in subsection (b), any person that contracts with a merchant to lease a device that enables credit card, debit card, or other payment card processing shall ensure that the written contract between the payment processor and merchant clearly and conspicuously includes the following information:

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Terms Used In Tennessee Code 47-22-404

  • Agreement: means a contract to provide payment services. See Tennessee Code 47-22-401
  • Contract: A legal written agreement that becomes binding when signed.
  • Credit card: means any card, plate, coupon book, or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. See Tennessee Code 47-22-401
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lease: means a transfer of the right to possession and use of a device for a term in return for consideration. See Tennessee Code 47-22-401
  • Merchant: means a person, located in this state, that is in the business of selling property or services and that accepts credit cards, debit cards, or other payment cards as payment for property or services sold. See Tennessee Code 47-22-401
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1) The cost to lease the device on a monthly basis;
(2) A reasonable approximation of the total cost to lease the device over the term of the lease calculated by multiplying the monthly lease cost by the term; provided, however, the total cost shall not include:

(A) Any obligation due a governmental body; or
(B) Any fees or charges incurred by the merchant due to the merchant’s noncompliance with the terms of the contract;
(3) The minimum time period for which the device may be leased; and
(4) If an option to purchase the device is available:

(A) The total cost to purchase the device outright if the merchant were to purchase the device at the time the contract is entered into; or
(B) A toll-free telephone number that the merchant may use in order to learn the total cost to purchase the device outright or to buy out the lease agreement.
(b) The information required in subdivisions (a)(1)-(4) shall be either:

(1) Printed clearly and conspicuously on the written contract in at least fourteen-point bold font; or
(2) Handwritten clearly and conspicuously in an appropriately designated blank space on a preprinted form contract.
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