Sponsored by:
Assemblywoman JESSICA RAMIREZ
District 32 (Hudson)
SYNOPSIS
Prohibits seller from charging credit card surcharges; establishes notice requirements for credit card minimums and cash discounts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit card surcharges and amending and supplementing P.L.2023, c.146.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2023, c.146 (C.56:8-156.1) is amended to read as follows:
1. As used in this act:
"Credit card" means a card, plate, charge card, charge plate, or other single credit device that may be used from time to time to obtain credit.
"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.
"Restaurant" means an establishment in which the principal business is the sale of food or beverages for consumption on or off the premises.
"Seller" means a person who sells, leases, or rents goods or services to a customer.
"Surcharge" means any additional amount imposed by a seller at the time of a credit card transaction that increases a charge to a customer for the use of a credit card.
Transaction means the sale of goods, services, or anything of value to a consumer, but excludes the payment of any: (1) fees, costs, fines, or other charges to a State agency; (2) taxes, penalties, interest, and fees; (3) taxes, penalties, interest, and fees, or other charges, to a municipality; (4) fees, costs, fines, or other charges to the judiciary; or (5) sum pursuant to any other provision of State law or regulation.
(cf: P.L.2023, c.146, s.1)
2. Section 2 of P.L.2023, c.146 (C.56:8-156.2) is amended to read as follows:
2. a. A seller shall not impose a surcharge 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.)].
b. [A seller that imposes a surcharge on a customer to process a credit card payment shall disclose the amount of the surcharge to a customer, 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 entry and point of sale or, in the case of a restaurant, on a sign in the customer service area and on the menu, except:
(1) 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; or
(2) 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.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
c. A violation of this section is an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
(cf: P.L.2023, c.146, s.2)
3. (New section) A seller that conditions acceptance of a credit card for a transaction on a requirement that the transaction be in a minimum amount shall disclose the requirement and the minimum amount by, in the case of a seller other than a restaurant, posting clear and conspicuous notice on a sign at the point of entry and point of sale or, in the case of a restaurant, on a sign in the customer service area and on the menu, except:
a. 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; or
b. 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.
4. (New section) a. A seller that offers a discount on a transaction to induce payment by cash, check, debit card, or similar means rather than by a credit card shall post a notice disclosing the discount by, in the case of a seller other than a restaurant, posting clear and conspicuous notice on a sign at the point of entry and point of sale or, in the case of a restaurant, on a sign in the customer service area and on the menu, except:
(1) 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; or
(2) 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.
b. This section shall not apply to a motor fuel retail dealer.
5. This act shall take effect immediately.
STATEMENT
This bill prohibits a seller from imposing a credit card surcharge on a customer using a credit card for a transaction occurring in the State. Under current law, a seller may impose a credit card surcharge that is no greater than the actual cost to the seller to process the credit card payment. The bill also establishes certain notice requirements for sellers that condition the acceptance of a credit card on a minimum transaction amount and for sellers that offer a discount on transactions to induce payment by cash, check, or debit card rather than by credit card. The bill does not apply to the existing notice requirements for motor fuel retail dealers that sell similar fuels at different prices to customers that use cash and customers that use credit cards.