Consumer Protection - Credit or Debit Card Surcharges - Limitation
Impact
The enactment of SB520 will amend the Commercial Law of Maryland, adding new provisions that classify violations of these surcharge limits as unfair, abusive, or deceptive trade practices. This designation means that any breaches of this bill will be subject to enforcement actions and penalties under the Maryland Consumer Protection Act. Retail businesses will need to adjust their payment processing practices to ensure compliance with this new legislation by limiting surcharges on credit and debit transactions.
Summary
Senate Bill 520, titled 'Consumer Protection – Credit or Debit Card Surcharges – Limitation', aims to establish safeguards against excessive surcharges that retail businesses may impose on consumers who use credit or debit cards for transactions. This bill specifically prohibits retailers from charging surcharges beyond the actual processing costs they incur for such transactions. The intent is to prevent businesses from exploiting consumers through excessive fees that exceed the necessary reimbursement for payment processing.
Contention
While there is broad support for consumer protection measures, some concerns may arise regarding the implications for retail businesses. Critics may argue that imposing limits on surcharges could hinder the ability of retailers to cover their costs, especially those that face higher processing fee rates. Retailers might express concerns that compliance could lead to reduced revenue or enforced changes that complicate their pricing structures. Conversely, advocates for consumer rights praise the proactive steps towards protecting customers from unfair financial practices.