The recent definition isn't vague (no punishment beatings), but it is situational. So a massive number in a standard contract will be seen as punitive to anyone

The recent definition isn't vague (no punishment beatings), but it is situational. So a massive number in a standard contract will be seen as punitive to anyone but a mega merchant. Particularly as it also precedes cancellation of the contract which seems like the right restitution for a merchant who is persistently miscalculating or misdeclaring transaction risk (rather than causing specific losses to the card network).