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SB21-091

Credit Transaction Charge Limitations

Concerning limitations on credit transaction charges.
Session:
2021 Regular Session
Subject:
Financial Services & Commerce
Bill Summary

Under current law, a seller, lessor, or company issuing a credit or charge card is prohibited from imposing a surcharge against a person who elects to pay for a sales or lease transaction by using a credit or charge card. The bill:

  • Repeals the prohibition; and
  • Limits the maximum surcharge amount per transaction to 2% of the total cost to the buyer for the sales or lease transaction or the merchant discount fee , which is defined as the actual fee that a seller or lessor (merchant) pays its processor or service provider to process the transaction .

A merchant is required to display notice regarding the surcharge on the merchant's premises or, for online purchases, before an online customer's completion of the sales or lease transaction.The bill clarifies that a merchant is prohibited from applying the surcharge on debit card payments or payments made by redemption of a gift card.If a merchant imposes a surcharge in violation of the bill, an individual consumer aggrieved by the violation may seek enforcement of the violation as an excess charge under the "Uniform Consumer Credit Code - Remedies and Penalties".

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Passed

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