New Jersey Assembly Bill A4923

New Jersey 2024-2025 Regular Session

• Introduced: 10/21/24
• Refer: 10/21/24

Caption

Prohibits seller from charging credit card surcharges; establishes notice requirements for credit card minimums and cash discounts.

Impact

The law requires that sellers do not charge more than the actual cost incurred to process a credit card payment, thereby eliminating potential hidden fees that often accompany credit card transactions. Furthermore, A4923 introduces specific notice requirements for sellers regarding minimum transaction amounts and discounts offered for alternate payment methods, such as cash or debit cards. This aims to empower consumers with clear information, ensuring they are well-informed about transaction conditions before proceeding with their purchases.

Summary

Assembly Bill A4923 aims to enhance consumer protection by prohibiting sellers in New Jersey from imposing surcharges on customers who use credit cards for transactions. This bill amends existing laws to prevent additional costs from being passed onto consumers, which can often deter them from using credit cards for purchases. The primary goal of this legislation is to foster a fairer and more transparent transaction environment for consumers by ensuring that they are not penalized for their choice of payment method.

Contention

While supporters of A4923 emphasize the bill's consumer protection focus, there may be contention surrounding the balance between protecting consumers and enabling merchants to cover their transaction costs. Some sellers argue that allowing surcharges helps them manage credit card processing fees, which can be significant, particularly for small businesses. Additionally, opponents might raise concerns regarding how these regulations could impact pricing strategies and the overall business environment, potentially leading to increased costs being absorbed elsewhere.