{"data":{"id":"us-ky/krs-434.560","jurisdiction":"us-ky","citation":"KRS 434.560","heading":"Definitions for KRS 434.550 to 434.730.","body":"As used in KRS 434.550 to 434.730, unless the context otherwise requires:\n(1) \"Automated banking device\" means any machine which when properly activated by\na credit card, debit card or personal identification code will perform any of the\nfollowing services:\n(a) Dispense money as a debit to the cardholder's savings or checking account;\n(b) Print the cardholder's savings or checking account balances on a statement;\n(c) Transfer funds between a cardholder's savings and checking account;\n(d) Accept payments on a cardholder's loan;\n(e) Dispense cash advances on an open end credit or a revolving charge\nagreement;\n(f) Accept deposits to a customer's savings or checking account;\n(g) Receive inquiries of verification of checks and dispense information which\nverifies that funds are available to cover said checks; or\n(h) Cause money to be transferred electronically from a cardholder's account to\nan account held by any b usiness, firm, retail merchant, corporation, or any\nother organization;\n(2) \"Cardholder\" means:\n(a) For a credit or debit card, the person or organization named on the face of a\ncredit or debit card to whom or for whose benefit the credit or debit card is\nissued by an issuer; or\n(b) For a gift card, any person or organization to whom a physical or virtual gift\ncard is issued through a purchase, or who receives a gift card from a willing\nparty;\n(3) \"Credit card\" means any instrument or device, whether known as a credit card,\ncredit plate, credit number or by any other name, issued by an issuer for the use of\nthe cardholder in obtaining money, goods, services or anything else of value on\ncredit;\n(4) \"Debit card\" means any instrument or device, known by any nam e, issued with or\nwithout fee by an issuer for the use of the cardholder in obtaining money, goods,\nservices, and anything else of value, payment of which is made against funds\npreviously deposited by cardholder;\n(5) \"E.F.T. system\" means an electronic fun ds transfer system whereby funds are\ntransferred electronically from a cardholder's account to any other account;\n(6) \"Expired credit card\" means a credit card which is no longer valid because the term\nshown on it has expired;\n(7) \"Expired debit card\" mean s a debit card which is no longer valid because the term\nshown on it has expired;\n(8) \"Face value\" means the highest monetary value listed on a gift card or its\npackaging, or if no value is listed, two hundred fifty dollars ($250);\n(9) \"Gift card\" means a card, code, or device, whether activated or unactivated, that:\n(a) Is issued on a prepaid basis primarily for personal, family, or household\npurposes in a specified amount, regardless of whether that amount may be\nincreased or reloaded in exchange for payment; and\n(b) May be redeemable upon presentation by a cardholder at a single merchant or\ngroup of merchants, or at multiple unaffiliated merchants within a payment\ncard network;\n(10) \"Gift card redemption information\" means information unique to each gift card\nwhich allows the cardholder to access, transfer, or spend the funds on that gift card;\n(11) \"Issuer\" means the business organization or financial institution which issues a\ncredit, debit, or gift card or its duly authorized agent;\n(12) \"Merchant\" means an owner or operator of any retail mercantile establishment or\nany agent, employee, lessee, consignee, officer, director, franchisee, or independent\ncontractor of such owner or operator. \"Merchant\" also means:\n(a) A person who receives from an authorized  user of a payment card, or\nsomeone the person believes to be an authorized user, a payment card or\ninformation from a payment card, or what the person believes to be a payment\ncard or information from a payment card, as the instrument for obtaining,\npurchasing, or receiving goods, services, money, or anything else of value\nfrom the person; or\n(b) A person engaged in the business of selling gift cards to consumers;\n(13) \"Participating party\" means a business organization or financial institution, or any\nduly authorized agent of such business organization or financial institution, which is\nobligated by contract to acquire from a person, business organization, or financial\ninstitution providing money, goods, services or anything else of value, a sales slip,\nsales draft, or other instrument evidencing a credit, debit, or gift card transaction\nand from whom the issuer is obligated by contract to acquire or participate in such\nsales slip, sales draft or other instrument;\n(14) \"Payment card\" means a credit card, ch arge card, debit card, or any other card that\nis issued to an authorized card user and that allows the user to obtain, purchase, or\nreceive goods, services, money, or anything else of value from a merchant;\n(15) \"Presentation or presents\" means those actio ns taken by a cardholder or any person\nto introduce a credit or debit card into an automated banking device or merely\ndisplaying or showing a credit, debit, or gift card to the issuer, a person or\norganization providing money, goods, services, or anything else of value, or any\nother entity with intent to defraud;\n(16) \"Receives\" or \"receiving\" means acquiring possession or control of a credit or debit\ncard;\n(17) \"Reencoder\" means an electronic device that places encoded information from the\nmagnetic strip o r stripe of a payment card onto the magnetic strip or stripe of a\ndifferent payment card;\n(18) \"Revoked credit card\" means a credit card which is no longer valid because\npermission to use it has been suspended or terminated by the issuer;\n(19) \"Revoked deb it card\" means a debit card which is no longer valid because\npermission to use it has been suspended or terminated by the issuer; and\n(20) \"Scanning device\" means a scanner, reader, or any other electronic device that is\nused to access, read, scan, obtain,  memorize, or store, temporarily or permanently,\ninformation encoded on the magnetic strip or stripe of a payment card.","path":["KRS Chapter 434"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56136","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:49Z","sha256":"e73d8ad2a5a4c3497e9758015465c8d45fef71fb2ce61c94a4d1e44e4d8c74d2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-434.550","next":"us-ky/krs-434.570"},"notice":"GroundRules: Original legal text. Not legal advice."}