New Jersey Governor Phil Murphy signed a bill on Friday which prohibits sellers from imposing certain surcharges for credit card transactions and establishes certain notice requirements regarding surcharges.
The law prohibits sellers from imposing a credit card surcharge greater than the actual cost to the seller to process the credit card payment.
In a statement, Murphy said the legislation builds upon his administration’s efforts to protect New Jersey consumers by improving transparency and curtailing unfair practices that disproportionately burden low- and moderate-income New Jerseyans.
“As our post-pandemic economy continues to grow and evolve, we too must adapt to best safeguard New Jersey consumers against unfair practices,” Murphy said in a statement.
Under the law, sellers that do impose surcharges are required to inform customers of the fee through written notice at the point of entry and the point of sale, or, in the case of a restaurant, on a sign in the customer service area and on the menu.
A violation of the bill’s provisions would carry the penalties associated with any unlawful practice under the consumer fraud act, including fines and the potential for action by the Attorney General.
They are other costs associated that are being excluded from this law.
For example, many credit card processors will charge vendors a $50 fee any time a charge is disputed regardless of the outcome. Even if the disputed amount is only $1.
The state could have used this law to protect vendors from these predatory practices but chose to listen to the lobbyists…
As an owner of a small business. This the biggest nightmare. Keep in mind there are processors like square that don’t charge charge back fees
Great, thanks Gov. Murphy!
I have see stores around Lakewood charging $5 fee!!
Basically the outcome is increased pricing on absolutely everything, good job by Murphy the clown
More government interference to prevent poor business owners making more money (the American way!).
Government is never the solution its always the problem.
Is the store forcing customers to pay with a credit card?
If a customer wants to pay witha credit card let him leave that store and go to another one until he finds the store that does not charge a fee and he can then regularly patronise that store….
Or the customer can simply carry cash so in the event of such a “horrendous” situation he can avoud the surcharge…..
Seems like the store owners feel entitled. Bad enough Jewish inflation in more than double the national inflation. We have to also cover the fees associated with making purchases. Don’t forget it’s a deduction on your taxes. Don’t double dip
Anyone is welcome to open their own stores to help bring down costs.
As a (side) note, there are serious Ribbis concerns when vendors charge more than the actual processing fee. Ask your LOR.