# Title 12.5 — Bank of North Dakota

## Article 12.5-03 — State Credit Card Administration

## Chapter 12.5-03-01 — Service Fees

### § 12.5-03-01-01. Statutory authority.

North Dakota Century Code section 54-06-08.2 requires the Bank of North Dakota to adopt rules
establishing the terms under which executive branch agencies may charge a service fee for the
acceptance of a payment made by a credit card or debit card or an electronic fund transfer in
compliance with a credit card company's rules and to approve the amount that may be charged by an
executive agency.
History: Effective April 1, 2013.
General Authority: NDCC 54-06-08.2
Law Implemented: NDCC 54-06-08.2
### § 12.5-03-01-02. Definitions.

As used in this chapter, unless the context requires otherwise:
1. "Bank" means the state doing business as the Bank of North Dakota and also includes the
executive committee of the Bank acting on behalf of the Bank. The Bank is the state credit
card administrator for credit card transactions of state agencies, boards, and commissions.
2. "Discover acquirer operating regulations" means regulations adopted by the Discover network
as they pertain to merchant acceptance of a card issued under license from the Discover
network.
3. "MasterCard merchant rules" means rules adopted by MasterCard international incorporated
as they pertain to merchant acceptance of a card issued under license from MasterCard
international.
4. "Merchant agreement" means an agreement entered between the Bank and merchants to
govern the acceptance of credit cards by the merchant.
5. "Network regulations" means the rules and regulations adopted by MasterCard, Visa, and
Discover.
6. "Rules" means this chapter, as amended and supplemented from time to time.
7. "Service fee" means a fee to be added to a payment as a service charge for the acceptance of
a payment made by a credit or debit card or an electronic fund transfer and is referred to by
credit card companies as a "convenience fee" or "surcharge".

8. "State" means the state of North Dakota, acting through its executive, legislative, and judicial
branches.
9. "Visa international operating regulations or card acceptance guidelines" means regulations
adopted by Visa U.S.A. as they pertain to merchant acceptance of a card issued under license
from Visa.
History: Effective April 1, 2013.
General Authority: NDCC 54-06-08.2
Law Implemented: NDCC 54-06-08.2
### § 12.5-03-01-03. Implementation and administration.

1. The Bank is authorized to execute all necessary or desirable documents with an executive
branch agency, including a merchant agreement.
2. An executive branch agency that accepts any payment by credit or debit card or by electronic
fund transfer must enter a merchant agreement with the Bank that creates and governs the
relationship between the executive branch agency and the Bank.
3. An executive branch agency must adhere to and comply strictly with all network regulations
that govern service fees, including the amount that may be charged as a convenience fee or
surcharge.
4. The Bank and state's designated processor are not able to charge a service fee to
cardholders on behalf of the executive branch agency.
5. In order to charge a service fee, an executive branch agency's approved payment application
must process the service fee on behalf of the executive branch agency.
History: Effective April 1, 2013.
General Authority: NDCC 54-06-08.2
Law Implemented: NDCC 54-06-08.2
### § 12.5-03-01-04. Network regulations.

The network regulations may be obtained by executive branch agencies as follows:
1. MasterCard rules at www.mastercard.com.
2. Visa operating regulations at www.visa.com.
3. Discover merchant operating regulations at www.discovernetwork.com.
History: Effective April 1, 2013.
General Authority: NDCC 54-06-08.2
Law Implemented: NDCC 54-06-08.2
### § 12.5-03-01-05. Rules amendment procedure.

These rules may be amended at any time and from time to time by the industrial commission.
History: Effective April 1, 2013.
General Authority: NDCC 54-06-08.2
Law Implemented: NDCC 54-06-08.2
