Counties and municipalities; prohibit surcharge on certain payments by credit or debit cards.
If enacted, SB2059 will significantly alter the way local governments can charge for electronic transactions. This change is intended to enhance fairness in payment processing, ensuring that the fees for the use of credit and debit cards do not become a burdensome additional cost for citizens. It also reflects a growing trend towards cashless payments while providing a clearer framework for municipalities on how to handle payment processing fees. The legislation aims to protect consumers from unexpected charges, thereby increasing confidence in using electronic payment methods for tax and fee payments.
Senate Bill 2059 aims to amend Section 17-25-1 of the Mississippi Code of 1972 by prohibiting counties and municipalities from imposing surcharges or transaction fees on payments made using credit cards, charge cards, debit cards, or other electronic payment forms in lieu of cash or check payments. This bill focuses on ensuring that users of electronic payment methods only pay the processing fee associated with such payments rather than additional costs levied by local governments. The bill is designed to streamline payment processes for residents and promote the use of electronic payment methods for government transactions.
There may be points of contention surrounding the bill, particularly in relation to how local governments will adapt to this change in their revenue models. While proponents may see this as a consumer protection effort, critics might argue that municipalities have a right to recover the costs incurred from processing electronic payments. Some local leaders could express concerns about their budgets and the potential loss of revenue that might result from this prohibition. The balance between consumer protection and local government revenue generation will likely be a focal point of discussion during the bill's consideration.