25 LC 44 3072S/AP
House Bill 241 (AS PASSED HOUSE AND SENATE)
By: Representatives Rhodes of the 124
th
, Williams of the 148
th
, Douglas of the 78
th
, Chastain
of the 7
th
, Barrett of the 24
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to
1
general provisions regarding contracts, so as to revise provisions regarding convenience fees2
for payment by electronic means; to provide for related matters; to repeal conflicting laws;3
and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to general7
provisions regarding contracts, is amended by revising Code Section 13-1-15, relating to8
convenience fee and when appropriate, as follows:9
"13-1-15.10
(a) As used in this Code section, the term:11
(1) 'Actual cost' means the amount paid by a lender to a third party or the amount
12
incurred by a third party for the processing of a payment made by electronic means. If13
a lender or merchant is a subsidiary of an entity that processes payments made by14
electronic means, the parent entity shall be considered a third party.15
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(2) 'Payment by electronic means' means the remittance of an amount owed through the
16
use of a credit card, debit card, electronic funds transfer, electronic check, or other17
electronic method.18
(b) In addition to any other charges, interest, and fees permitted by law and subject to the19
terms and conditions of the debit card or credit card acceptance agreement, a lender or20
merchant may collect a nonrefundable convenience fee from any person electing to utilize21
an option of payment by electronic means. Such convenience fee shall be in an amount22
that represents the actual cost to a lender or merchant; provided, however, that in lieu of23
the actual cost, a lender or merchant is authorized to collect a convenience fee which does24
not exceed the average of the actual cost incurred for a specific type of payment made by25
electronic means for which such lender or merchant imposes a convenience fee, or a fee
26
of up to $5.00, whichever is greater.27
(c) No convenience fee shall be charged unless a lender or merchant also provides a direct28
payment option by check, cash, or money order or payment by electronic means in which29
no convenience fee is imposed.30
(d) Any lender or merchant imposing a convenience fee as provided for in this Code31
section shall provide clear disclosure of such fee prior to imposition. Such notice shall32
include the dollar amount of such fee, a statement that such fee is nonrefundable, and a33
statement that such fee is charged for payment by electronic means.34
(e) This Code section shall apply only to loans made pursuant to Chapter 1 of Title 7,35
installment loans made pursuant to Chapter 3 of Title 7, retail installment and home36
solicitation sales contracts entered into pursuant to Article 1 of Chapter 1 of Title 10, motor37
vehicle sales financing contracts entered into pursuant to Article 2 of Chapter 1 of Title 10,38
and insurance premium finance agreements entered into pursuant to Chapter 22 of Title 33;39
provided, however, that a convenience fee authorized under this Code section shall not40
constitute interest, an additional charge, a time price differential, a finance charge, or a41
service charge within the meaning of Code Section 7-3-12, 10-1-4, 10-1-33, or 33-22-9.42
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(f) Nothing contained in Code Section 7-4-18 shall be construed to amend or modify the
43
provisions of this Code section."44
SECTION 2.45
All laws and parts of laws in conflict with this Act are repealed.46
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