Trenton – In an effort to improve transparency around credit card fees, the Senate approved legislation today sponsored by Senator Gordon Johnson which would cap fees and establish notice requirements.
“It seems in recent months credit card surcharges have been popping up all over the place with no consistency of what to expect from business to business. This legislation will ensure that sellers are only passing on the processing fees that they are charged rather than making a profit on someone using a card over cash,” said Senator Johnson (D-Bergen). “So few people carry cash anymore, and we understand these processing fees can be burdensome for businesses but we also don’t want them taking advantage of the situation.”
The bill, S-3508, would prohibit a seller from imposing a credit card surcharge greater than the actual cost to the seller to process the credit card payment.
Under the bill, sellers that do impose surcharges would be required to inform customers of the fee through written notice at the point of entry and the point of sale, or, in the case of a restaurant, on a sign in the customer service area and on the menu.
A violation of the bill’s provisions would carry the penalties associated with any unlawful practice under the consumer fraud act, including fines and the potential for action by the Attorney General.
The bill was released from the Senate by a vote 34-0.