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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | January 25, 2013 12:20 PM |
|---|---|
| From: | Representative Adam Ravenstahl |
| To: | All House members |
| Subject: | Co-sponsorship: Prohibiting Credit Card Transaction Surcharges |
| In the near future, I will be introducing legislation that would prohibit merchants from imposing credit card transaction fees or surcharges on consumers. As you may know, on January 27th, 2013, merchants will be able to impose credit card transaction surcharges on people paying with a credit card. This is because of a July 2012 settlement agreement between Visa, MasterCard, JPMorgan Chase, and Bank of America and retailers large and small nationwide. In the preliminary settlement agreement, the credit card companies have agreed to pay more than $7 billion to business owners who have accused the financial companies of price-fixing credit card transaction fees. In addition, the merchants have the right, starting January 27th, to impose credit card transaction fees on consumers using credit cards when purchasing items. These types of surcharges usually range from 1.5% to 3%; however, the fee cannot exceed 4%. While retailers still have the option of imposing or not imposing the fee, I feel the General Assembly needs to stand with the consumer and protect their bottom line in this difficult economy. So far, 10 states have enacted laws that would prohibit the surcharges from being imposed. Those states are California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Under my legislation, retailers will be prohibited from imposing credit card transaction surcharges. However, retailers will also be guaranteed the right to offer discounts if consumers wish to pay with cash, check, or similar means other than a credit card. I hope you will join me in co-sponsoring this important consumer protection legislation. |
Introduced as HB750
Memo Updated: January 25, 2013 12:21 PM