H.R. 8720: Campaign Finance Transparency Act

The proposed bill, known as the Campaign Finance Transparency Act, aims to modify various aspects of campaign finance laws in the United States. Here’s a summary of its main provisions:

1. Disclosure Requirements for Online Contributions

The bill would require political committees to obtain specific information from donors when accepting contributions via credit or debit cards over the internet. This information includes:

• The card verification value or code and the ZIP code associated with the billing address of the donor.
• For U.S. citizens, a mailing address used for voter registration, a copy of their U.S. passport, or another approved identification.
• For permanent residents, a copy of their permanent resident card or another acceptable form of identification.

Details would also specify that contributors who set up recurring donations would not have to provide this information again after the initial contribution.

2. Name Requirement for Credit Card Contributions

The Act stipulates that any political committee accepting credit or debit card contributions must ensure that the name on the card matches the name of the individual making the contribution.

3. Prohibition on Gift Card Contributions

Political committees would be prohibited from accepting contributions made through gift cards or gift certificates. This provision aims to prevent contributions that could mask the true source of funds.

4. Removal of Contribution Reporting Thresholds

Currently, contributions below a certain amount (e.g., $200) do not need to be reported in detail. The bill proposes to eliminate this threshold, requiring all contributions to be reported, regardless of the amount.

5. Prohibition on Contributions in Another's Name

The Act will clarify that it is illegal to assist or direct someone in making a contribution in the name of another person. If a recipient suspects such an occurrence, they are required to report it to the Federal Election Commission (FEC).

6. Regulatory Changes

The bill mandates that the FEC create regulations to enforce these new requirements within 90 days of enactment. This process involves consultation with credit card payment networks and other stakeholders.

7. Implementation Date

The amendments introduced by this bill would take effect 90 days following the FEC's issuance of the necessary regulations.

Relevant Companies

• $V - Visa Inc.: As a major payment processing network, Visa would need to adapt its systems to comply with the new requirements for online contributions.
• $MA - Mastercard Incorporated: Similar to Visa, Mastercard would be affected as it processes credit card donations for political committees and would need to ensure compliance with the new disclosures.