A 5110 — Prohibits seller providing service or selling goods from charging surcharge to customer using debit card or gift card.*

A5110 1R [First Reprint] ASSEMBLY, No.

Assemblyman Karabinchak         SYNOPSIS      Prohibits seller providing service or selling goods from charging surcharge to customer using debit card or gift card.

  CURRENT VERSION OF TEXT      As introduced.reported by the Assembly Consumer Affairs Committee on June 4, 2026, with amendments.

   An Act concerning the use of debit cards 1or gift cards1 to pay for 1goods or1 services and amending P.L.2023, c.146.

     “Debit card” means any instrument or device, whether known as a debit card, automated teller machine card, 1electronic benefit transfer card,1 or by any other name, issued with or without fee by an issuer for the use of the debit card holder in obtaining money, goods, services or anything else of value through the electronic authorization of a financial institution to debit the debit card holder's account.

     1“Gift card” means gift card as that term is defined in section 1 of P.L.2021, c.431 (C.56:8-110.1).1      "Goods" means any beverage, chattels, foodstuffs, products, or wares of any type or description but shall not include "motor fuel."      "Motor fuel" means any combustible liquid or gaseous substance used, or suitable, for the generation of power to propel motor vehicles.

A seller shall not impose on a customer who uses a credit card for a transaction occurring in New Jersey a surcharge that is greater than the actual cost to the seller to process the credit card payment.  A seller subject to the provisions of P.L.2023, c.146 (C.56:8-156.1 et seq.) shall make available to the Director of the Division of Consumer Affairs in the Department of Law and Public Safety for inspection any account books, papers, documents, and other records necessary to enable the director to determine reasonable compliance with the provisions of P.L.2023, c.146 (C.56:8-156.1 et seq.).  A seller that imposes a surcharge on credit card transactions shall clearly and conspicuously disclose, prior to payment, that the seller is prohibited from applying a surcharge to payments made by cash1[cash oror]1 debit card.card 1or gift card1.

     c.     A seller providing a service 1or selling goods1 shall not impose 1a surcharge1 on a customer who uses a debit card 1or gift card1 for a transaction occurring in New Jersey a1[a surcharge.surcharge]1.

    STATEMENT        This bill prohibits a seller providing a service from charging a surcharge when a customer uses a debit card to pay for the service.       The bill further provides that if a seller imposes a surcharge on credit card transactions, the seller is required to clearly and conspicuously disclose, prior to payment, that the seller is prohibited from applying a surcharge to payments made by cash or debit card.

     A violation of the bill is an unlawful practice under the consumer fraud act.

An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.  In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.