Bill Text: NJ A4284 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits seller from imposing certain surcharge for credit card transactions; establishes certain notice requirements regarding surcharge.
Spectrum: Strong Partisan Bill (Democrat 13-1)
Status: (Passed) 2023-08-18 - Approved P.L.2023, c.146. [A4284 Detail]
Download: New_Jersey-2022-A4284-Introduced.html
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Prohibits seller from imposing surcharge on consumer for credit card transaction greater than cost to seller to process payment; establishes certain notice requirements regarding surcharge.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit card surcharges and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Consumer" shall have the same meaning as provided in section 1 of P.L.1974, c.146 (C.56:11-1).
"Credit card" means a card, 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 or rents goods or services to a consumer.
"Surcharge" means any additional amount imposed by a seller at the time of a credit card transaction that increases a charge to a consumer for the use of a credit card.
2. a. A seller shall not impose on a consumer who uses a credit card for a transaction a surcharge that is greater than the actual cost to the seller to process the credit card payment.
b. A seller that imposes a surcharge on a consumer to process a credit card payment shall disclose the amount of the surcharge to a consumer by posting clear and conspicuous notice on a sign at the point of sale, or, for any restaurant, on a sign in the customer service area or on a printed menu, except:
(1) if the seller is processing a credit card payment for a transaction that will occur through an Internet website or mobile application, the seller shall provide clear and conspicuous electronic notice 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.
c. A violation of this section is an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
3. This act shall take
effect immediately.
STATEMENT
This bill prohibits a seller from imposing on a consumer who uses a credit card for a transaction a surcharge that is greater than the actual cost to the seller to process the credit card payment.
Under the bill, a seller that imposes a surcharge on a consumer to process a credit card payment is to disclose the existence of the surcharge to a consumer by posting clear and conspicuous notice regarding the surcharge on a sign at the point of sale, or, for any restaurant, in the customer entry area or on a printed menu. However, if the seller is processing a credit card payment for a transaction that will occur through an Internet website or mobile application, the seller is to provide clear and conspicuous electronic notice prior to processing the transaction. Or, if the seller is processing a credit card payment for a transaction that will occur over the telephone, the seller is to provide verbal notice prior to processing the transaction.
The bill defines "surcharge" to mean any additional amount imposed by a seller at the time of a sales transaction that increases a charge to a consumer for the use of a credit card. In addition, the bill defines "goods" to exclude motor fuel.
A violation of the bill's provisions is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
