Allowing a surcharge when purchases are made with a credit or debit card.
Impact
If enacted, SB104 would have a significant impact on how local governments in Kansas handle payment processing for taxes, utility fees, tuition, and other charges. Mandating that municipalities, counties, and school districts can charge a surcharge would help them recover the costs associated with card payments. The bill seeks to amend several Kansas statutes, repealing certain sections that currently limit the imposition of fees on card transactions, thereby simplifying the payment process for both residents and local governments.
Summary
Senate Bill 104 proposes amendments to existing Kansas laws concerning financial institutions, specifically regarding the acceptance of credit and debit cards for payments made to cities, counties, and school districts. The bill allows these entities to impose a surcharge on transactions made using credit and debit cards, equating the additional fee to the actual cost incurred by the government for processing the card transaction. This legislative change aims to alleviate the financial burden on local governments while maintaining their ability to offer modern payment options to constituents.
Contention
While the bill's proponents argue that it empowers local governments to cover the costs of credit card processing, there are concerns regarding its implications for residents. Some stakeholders might view the imposition of surcharges as an unnecessary burden on taxpayers, particularly those who rely on credit and debit cards for payments. Additionally, the repeal of existing regulations raises questions about consumer protections and the potential for increased fees if local governments decide to escalate costs without proper oversight.
Providing that fiduciary financial institutions shall be overseen, supervised and examined by the office of the state bank commissioner as a chartered trust company, allowing a fiduciary financial institution to refer to itself as a trust company in legal or regulatory filings or disclosures to existing or prospective customers or investors and authorizing a fiduciary financial institution to exercise fiduciary powers and full trust powers and to engage as a trust company under state and federal law.
Sales transactions; discounts inducing payment by cash, check, or similar means; options; disclosure; surcharges; repealing provision prohibiting surcharge on use of credit and debit card. Effective date.