18 States Considering Bans on Credit Card Surcharges
Eighteen U.S. states are mulling legislation that would ban retailers from imposing surcharges on credit card transactions, following approval of new rules allowing merchant surcharges on MasterCard and Visa purchases. Ten states had already instituted prohibitions on credit card surcharges before the rule change, and few retailers have added surcharges out of concern that such a practice would outrage customers and negatively impact their business. Nevertheless, retailers are against the ban legislation because its passage would limit their options for recouping income lost to swipe fees paid to card networks. Of the 18 states, Utah is where the proposal to bar surcharging has proceeded the furthest, as the bill is currently being reviewed by Gov. Gary Herbert’s office. Meanwhile, Mississippi recently put a limited ban on credit card surcharges into effect, with the law applicable only to transactions made with cards issued by the state government. There also are indications of moves in a few states to loosen or not impose bans on such surcharges, including the introduction of a bill to relax an existing ban in Maine.
From “18 States Considering Bans on Credit Card Surcharges”
American Banker (04/01/13) Wack, Kevin