Check cashers and MS Credit Availability licensees; authorize to pass credit/debit card fees to customers.
The proposed bill alters existing financial transactional practices concerning the fees charged for check cashing services. Previously, check cashing businesses could not charge excessive fees. With this bill, these businesses can incorporate additional fees from third-party processors, potentially increasing the overall transaction costs for customers. Therefore, customers may need to be more cautious regarding the payment methods they select, as using a debit or credit card could result in higher fees than anticipated.
House Bill 260 aims to amend the Mississippi Code of 1972 by allowing check cashing businesses and credit availability licensees to pass on third-party processing fees associated with debit and credit card transactions to their customers. The legislation specifically amends Sections 75-67-517 and 75-67-619. This change permits these businesses to impose fees collected from third-party processors for credit and debit card usage, as long as they provide clear notice to customers before completing their transactions. This notice must detail the fee amount, its purpose, and specify the affected payment methods.
While supporters argue that the bill will allow businesses to recover legitimate operational costs associated with card processing, critics may view it as an additional economic burden on consumers, particularly those who might rely on such services. By permitting businesses to add third-party fees to customer bills, some lawmakers and consumer advocates are concerned about the potential for these additional costs to disproportionately affect low-income individuals who may use check cashing services more frequently. The bill's passage may lead to debates regarding the fairness of imposing such fees and its broader implications on financial accessibility.