SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 104
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
SB 104, as amended, would repeal the prohibition on
imposing a surcharge on payments made by credit or debit
cards. The bill would also establish notification requirements
on persons and retailers who opt to impose a surcharge on
credit card payments.

Surcharge Prohibition Repeal
The bill would repeal the statute within the Uniform
Consumer Credit Code (KSA 16a-2-403) that prohibits the
imposition of this surcharge and amend other sections of law
to remove references to the statute.

Notification Requirements
The bill would prohibit persons or retailers doing
business in Kansas in any sales, service, or lease transaction
with a consumer from imposing a surcharge unless the entity
complies with these requirements:
● A notice must be posted that explains the
imposition of the surcharge, the amount of the
surcharge, and which credit cards are subject to
the surcharge;

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 ● The notice must be clearly and conspicuously
posted at the point of entry and the point of sale;
● If the transaction is processed through a website or
mobile device, the person or retailer must post the
notice on the home page and the point of sale
webpage; and
● The notice must be prominently and conspicuously
posted at the required locations in a minimum size
of 16-point font.
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Kansas Chamber. [Note: A companion bill, HB 2133, has
been introduced in the House.]

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Kansas Chamber,
Kansas Association of Beverage Retailers, Kansas Funeral
Directors Association, Kansas Restaurant & Hospitality
Association, and National Federation of Independent
Business–Kansas and business representatives for Meineke
Car Care Centers and Tech Incorporated. Written-only
proponent testimony was submitted by representatives of
Fuel True Independent Energy and Convenience; the Kansas
Association of Counties; Kansas Cooperative Council;
Kansas Grain and Feed Association and the Kansas
Agribusiness Retailers Association; Overland Park Chamber
of Commerce; and Wichita Regional Chamber of Commerce.
The proponents generally indicated the bill would allow
retailers the flexibility to collect a surcharge to help cover
credit and debit card fee expenses, which have increased
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over time as consumers have shifted from the use of cash to
credit and debit cards. Conferees also noted Kansas is one of
four states with the prohibition on credit card surcharges. The
Kansas Chamber representative also noted a 2017 U.S.
Supreme Court decision (Expressions Hair Design v.
Schneiderman), in which the Court ruled to vacate a
surcharge prohibition similar to the one in Kansas law.
Neutral testimony provided by a representative of
American Express requested consideration of two
amendments to establish clear criteria to address risks
associated with surcharging, capping surcharges at a
reasonable level, and requiring clear and conspicuous
disclosure of any surcharge. A representative of the Office of
the State Bank Commissioner (OSBC) submitted written-only
neutral testimony noting the 2021 CardX LLC v. Schmidt
decision, a case which ruled KSA 16a-2-403 as an
unconstitutional violation of CardX’s freedom of speech. The
representative noted there has been confusion from the
public and merchants regarding CardX’s modification to the
applicability of the surcharge prohibition statute.
The Senate Committee amended the bill to add
notification requirements to consumers about the imposition
of a surcharge on those who elect to use a credit card for
payment.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Departments of
Education, Labor, and Revenue and the OSBC indicate the
bill would have no fiscal effect. The Kansas Association of
Counties states the bill would allow counties to offset fees
charged for credit and debit card processing.
Uniform Consumer Credit Code; surcharge prohibition repeal; credit and debit card
transactions; notification to consumers


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Statutes affected:
As introduced: 75-30, 2-403, 12-16, 19-122, 72-1176
As Amended by Senate Committee: 12-16, 2-403, 19-122, 72-1176, 75-30