Bill Text: NJ A5008 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits credit and debit card interchange fees in certain circumstances.
Sponsorship: Moderate Partisan Bill (Democrat 6-1)
Status: (Introduced) 2026-05-07 - Introduced, Referred to Assembly Consumer Affairs Committee [A5008 Detail]
Download: New_Jersey-2026-A5008-Introduced.html
Sponsored by:
Assemblyman WILLIAM W. SPEARMAN
District 5 (Camden and Gloucester)
Assemblywoman HEATHER SIMMONS
District 3 (Cumberland, Gloucester and Salem)
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Co-Sponsored by:
Assemblymen Kearney, Sampson and Assemblywoman Quijano
SYNOPSIS
Prohibits credit card interchange fees in certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain credit and debit card interchange fee practices 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:
"Acquirer bank" means a member of a payment card network that contracts with a merchant for the settlement of electronic payment transactions. An acquirer bank may contract directly with merchants or indirectly through a processor to process electronic payment transactions.
"Credit card" means any instrument or device linked to an established line of credit, whether known as a credit card, charge card, credit plate, or by any other name, issued with or without fee by an issuer for the use of the cardholder in satisfying outstanding financial obligations, obtaining money, goods, services, or anything else of value on credit.
"Debit card" means any instrument or device, whether known as a debit card, automated teller machine card, or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value through the electronic authorization of a financial institution to debit the cardholder's account. The term shall include a general-use prepaid card, as defined in 15 U.S.C. s.1693l-1. The term does not include a paper check.
"Electronic payment transaction" means a transaction in which a person uses a debit card, credit card or other payment code or device, issued or approved through a payment card network to debit a deposit account or use a line of credit, whether authorization is based on a signature, personal identification number or other means.
"Eligible contribution" means:
(1) a charitable contribution, as that term is defined in 26 U.S.C. s.170(c); or
(2) a contribution, as defined in section 28 of P.L. 2023, c.30 (C.19:44A-3), that is a transfer of money.
"Fee schedule" means a schedule, list, table, chart, or similar document or agreement, whether publicly disclosed or not, that sets forth or fixes the amount, or the formula for determining the amount, of one or more fee rates.
"Gratuity" means money voluntarily given to an employee from a guest, patron, or customer in connection with services rendered.
"Interchange fee" means a fee established, charged or received by a payment card network for the purpose of compensating the issuer for its involvement in an electronic payment transaction.
"Issuer" means the business organization or financial institution which issues a credit card or its duly authorized agent.
"Merchant" means a person that accepts electronic payment transactions and collects and remits a tax.
"Payment card network" means an entity that directly, or through licensed members, processors or agents, provides proprietary services, infrastructure and software that routes information and data to conduct debit card or credit card transaction authorization, clearance and settlement, and that a merchant or seller uses to accept as a form of payment a brand of credit or debit card.
"Processor" means an entity that facilitates, services, processes, or manages the debit or credit authorization, billing, transfer, payment procedures, or settlement with respect to any electronic payment transaction.
"Tax" means any tax imposed under P.L.1966, c.30 (C.54:32B-1 et. seq.), or P.L.2010, c.22 (C.54:39-101 et seq.), or P.L.1990, c.42, (C.54:15B-1 et. seq.) and any tax imposed by 26 U.S.C. s. 4081 et. seq.
2. a. A payment card network, whether directly or through an agent, acquirer bank, processor, contract, requirement, condition, penalty, technological specification, or inducement, shall not:
(1) establish, charge, or put forward on a fee schedule an interchange fee if:
(a) the fee is or includes a percentage multiplied by the gross dollar amount of a transaction conducted with a debit card or credit card; and
(b) the fee does not exclude from the gross dollar amount of the transaction any amount attributable to a tax or a gratuity on the transaction;
(2) increase the rate or amount of an interchange fee or other fee that applies to the portion of an electronic payment transaction other than the portion attributable to a tax or a gratuity on the transaction in an attempt to, or in a manner that would, circumvent the prohibition set forth in paragraph (1) of this subsection; or
(3) establish, charge, or put forward on a fee schedule an interchange fee that the payment card network knows or reasonably should know has been used in the current or previous calendar year by one or more issuers other than the payment card network to determine the amount of an interchange fee received or charged with respect to an eligible contribution made by debit card or credit card, unless the interchange fee does not exceed:
(b) three-tenths of one percent of the amount of eligible contribution made by means of a credit card.
b. (1) To comply with paragraph (1) of subsection a. of this section, a payment card network may:
(a) exclude the amount of any tax or gratuity from the calculation of interchange fees specific to each electronic payment transaction at the time of settlement; or
(b) within 30 days after the date of settlement of an electronic payment transaction, rebate to the merchant's settlement account an amount of an interchange fee equal to the reduction in the interchange fee that would have occurred had the calculation of the interchange fee at the time of settlement excluded the amount attributable to any tax or gratuity on the transaction.
(2) If a merchant is unable to capture and transmit tax information relevant to the electronic payment transaction at the time of settlement, the merchant may, within 180 days of the date of the transaction, submit documentation to the payment card network or its agent identifying any tax or gratuity on the transaction to the payment card network and, within 30 days of the submission of that documentation, the payment card network shall ensure that the merchant's account is credited an amount equal to the reduction in the interchange fee that would have occurred had the calculation of the interchange fee at the time of settlement excluded the amount attributable to any tax or gratuity on the transaction.
3. a. A payment card network that violates the provisions of this act shall:
(2) refund the portion of any fee that was collected in violation of this act.
b. The Attorney General may file suit to seek injunctive relief and, if appropriate, order restitution from any payment card network that violates the provisions of this act.
4. This act shall take effect on the 180th day after the date of enactment, except that the Attorney General may take any anticipatory action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill establishes limitations on a payment card network's ability to implement interchange fees.
The bill prohibits payment card networks from implementing an interchange fee when the fee: (1) includes a percentage multiplied by the gross dollar amount of a debit or credit card transaction, or (2) does not exclude any attributable tax or gratuity from the gross dollar amount. The bill prohibits payment card networks from increasing the rate of an interchange fee or other similar fee that applies to the portion of an electronic payment transaction other than the portion attributable to a tax or gratuity on a transaction to circumvent any prohibitions in the bill. It also prohibits payment card networks from establishing a fee schedule for an interchange fee that it knows has been used by another issuer within the calendar year unless the fee does not exceed two-tenths of one percent of the amount of an eligible contribution made by a debit card or three-tenths of one percent of the amount of an eligible contribution made by a credit card.
Under the bill, payment card networks are required to either exclude the amount of any tax or gratuity from the calculation of interchange fees for each electronic payment transaction at the time of settlement or rebate an amount of an interchange fee equal to the reduction in the interchange fee that would have occurred had the calculation of the interchange fee at the time of settlement had tax or gratuity been excluded within 30 days.
A payment card network in violation of the bill will be subject to a civil penalty of up to $1000 per violation, payable to the plaintiff, and required to refund the portion of fees collected when acting in violation of the bill. The Attorney General may file suit to seek injunctive relief and order restitution from a payment card network that violates the provisions of this bill.
