S2819 — An Act relative to credit card surcharges and transparency in credit card fees

Summary

An Act relative to credit card surcharges and transparency in credit card fees

Bill Text

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The bill modifies the regulations surrounding credit card payment surcharges and discounts offered by sellers.

• Chapter 140D, Section 28A

  (a) (1) With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay cash, check or similar means rather than use a credit card. No seller may offer any such discount unless such seller posts a notice disclosing such discount. Such seller shall clearly and conspicuously post such notice on the seller’s premises for in-person transactions, shall post such notice on the Internet website or digital payment application before completing any online transaction or transaction that is processed by way of digital payment application, and that if the seller is processing a credit card payment for a transaction that will occur over the telephone, the seller shall provide verbal notice of any such discount prior to processing the transaction.

  This addition allows sellers to offer discounts for cash payments, provided they notify customers properly.

• Chapter 140D, Section 28A

  (2) A seller shall not impose on a customer who uses a credit card for a transaction occurring in the commonwealth a surcharge that is greater than the actual cost to the seller to process the credit card payment.

  This establishes a limit on credit card surcharges to ensure they do not exceed processing costs.

• Chapter 140D, Section 28A

  (3) A seller that imposes a surcharge on a customer to process a credit card payment shall disclose the amount of the surcharge, prior to the customer incurring any charge for goods or services, by, in the case of a seller other than a restaurant, posting clear and conspicuous notice on a sign at the point of sale or, in the case of a restaurant, on a sign in the customer service area and on the menu; provided, however, that if the seller is processing a credit card payment for a transaction that will occur through an internet website, a mobile application or an electronic kiosk, the seller shall provide clear and conspicuous electronic notice on the checkout page of the internet website, mobile application or electronic kiosk prior to processing the transaction; provided further, that if the seller is processing a credit card payment for a transaction that will occur over the telephone, the seller shall provide verbal notice prior to processing the transaction; and provided further, that the amount of such surcharge be printed on every receipt.

  This requires sellers to clearly disclose any surcharges to customers before completing transactions.

Sponsors

• Joint Committee on Consumer Protection and Professional Licensure · Primary

Subjects