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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022 )
HOUSE BILL 3667 By: Munson
AS INTRODUCED
An Act relating to the Consumer Credit Code ; amending
14A O.S. 2021, Section 2 -417, which relates to
surcharges; allowing surcharges in certain
transactions; limiting surcharge amount; requiring
certain disclosures; limiting application of
surcharge in single transaction ; prohibiting
surcharges in certain transactions; creating
liability for violation ; allowing surcharges under
certain agreements; defining terms; exempting certain
entities from limitations; amending 14A O.S. 2021,
Section 2-211, which relates to discounts; deleting
surcharge limitation; deleting electronic funds
transmission service exception; deleting definition;
deleting certain exception; defining terms;
prohibiting electronic payment fees; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 14 A O.S. 2021, Section 2-417, is
amended to read as follows:
Section 2-417. A. No In accordance with this section, a seller
or lessor in any sales or lease transaction may impose a surcharge
on a cardholder buyer or lessee who elects to use a credit card or
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debit charge card in lieu of payment by cash, check or similar
means.
B. A seller or lessor may impose a surcharge that is the lesser
of either:
1. An amount not to exceed two percent (2%) of the total cost
to the buyer or lessee for the sales or lease transa ction. A seller
or lessor that imposes a surcharge on credit cards or charge cards
shall post signage at the seller 's or lessor's premises in a manner
that is visible to customers or, for a sales or lease transaction
made online, display before an online customer's completion of the
sales or lease transaction in a manner that is visible to the online
customer, the following language:
"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
TRANSACTION, AND PURSUANT TO SECTION 2 -417 OF TITLE 14A OF THE
OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
SURCHARGE IN AN AMOUNT NOT TO EX CEED TWO PERCENT (2%) OF THE TOTAL
PAYMENT MADE FOR GOODS OR SERVICES PURCHASED OR LEASED BY USE OF A
CREDIT OR CHARGE CARD. A SELLER OR LESSOR MAY NOT IMPOSE A
PROCESSING SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR
DEBIT CARD OR REDEMPTION OF A GIFT CARD."; or
2. An amount not to exceed the merchant discount fee that the
seller or lessor incurs in processing the sales or lease
transaction. The seller or lessor or the seller's or lessor's
processor or service provider shall calculate the surchar ge at an
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amount not to exceed the actual amount paid to the processor or
service provider to process the transaction. A seller or lessor
shall post signage at the se ller's or lessor's premises in a manner
that is visible to customers or, for a sales or le ase transaction
made online, display before an online customer 's completion of the
sales or lease transaction in a manner that is visible to the online
customer, the following language:
"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
TRANSACTION, AND PURSUANT TO SECTION 2 -417 OF TITLE 14A OF THE
OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
SURCHARGE IN AN AMOUNT NOT TO EXCEED THE MERCHANT DIS COUNT FEE THAT
THE SELLER OR LESSOR INCURS IN PROCESSING THE SALES OR LEASE
TRANSACTION. A SELLER OR LESSOR MAY NOT IMPOSE A PROCESSING
SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR DEBIT CARD OR
REDEMPTION OF A GIFT CARD. "
The processor or service provider may provide the seller or
lessor with the means to make the disclosure required by this
paragraph.
C. For any goods or services purchased or leased through
payment by credit card or charge card, the seller, lessor,
processor, or service provider shall provide as a separate line item
on the customer's receipt the surcharge amount impo sed.
D. A seller or lessor may impose only a single credit card or
charge card surcharge per sales or lease transaction.
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E. A seller or lessor shall not impose a su rcharge if a
customer elects to pay for goods or services by:
1. Using cash or check;
2. Using a debit card, whether or not a personal identification
number is used;
3. Processing a payment as a debit payment; or
4. Redeeming a gift card.
F. A seller or lessor who violates this section violates the
Consumer Credit Code and is subject to li ability under the Code.
G. A seller or lessor may impose a surcharge under this section
regardless of any contract or agreement that the seller or lessor
enters into on or after the effective date of this act.
H. As used in this section , "debit:
1. "Debit card" means any instrument or device, whether known
as a debit card or by any other name, issued with or without fee by
an issuer for the use of the cardholder in depositing, obtaining or
transferring funds from a consumer banking electronic facility ;
2. "Charge card" includes cards on which unpaid balances are
payable on demand;
3. "Merchant discount fee " means the actual fee, expressed as a
percentage or fixed a mount of the total transaction amount, that a
seller or lessor pays its processor or servi ce provider to process
the transaction; and
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4. "Surcharge" means any additional amount imposed at the time
of the sales or lease transaction by the seller or lessor that
increases the charge to the buyer or lessee for the privilege of
using a credit or ch arge card.
C. For purposes of this section, I. The limitations provided
for in this section shall not apply to a private educational
institution as defined in parag raph (e) of Section 3102 of Title 70
of the Oklahoma Statutes, a private school defined as a nonpublic
entity conducting an educational program for at least one grade
between prekindergarten through twelve, a municipality as defined in
paragraph 5 of Secti on 1-102 of Title 11 of the Oklahoma Statutes or
a public trust with a municipality as its beneficiary. Such
entities may charge a service fee. The service fee may be applied
to online or in-person transactions and shall be used to offset bank
processing fees, financial transaction fees, the cost of providing
for secure transaction, portal fe es, and fees necessary to
compensate for increased bandwidth incurred as a result of providing
the transaction.
SECTION 2. AMENDATORY 14 A O.S. 2021, Section 2-211, is
amended to read as follows:
Section 2-211. A. With respect to all sales transactions, a
discount which a seller offers, allows or otherwise makes available
for the purpose of inducing payment by cash, check or similar means
rather than by use of an open -end credit card account shall not
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constitute a credit service c harge as determined under Section 2 -109
of this title if the discount is offered to all prospective buyers
clearly and conspicuously in accordance with regulations of the
Administrator of Consumer Affairs Credit. No seller in any sales
transaction may impose a surcharge on a cardholder who elects an
open-end credit card or debit card account instead of paying by
cash, check or similar means. There is no limit on the discount
which may be offered by the seller. A seller who provides a
discount otherwise t han in accordance with the regulations of the
Administrator must make the disclosures required by those
regulations.
B. A seller who is registered with the United St ates Treasury
Department as a money transmitter pursuant to 31 CFR, Section
103.41, and who provides an electronic funds transmission service,
including service by telephone and the Internet, may charge a
different price for a funds transmission service ba sed on the mode
of transmission used in the transaction without violating this
section so long as the price charged for a service paid for with an
open-end credit card or debit card account is not greater than the
price charged for such service if paid for with currency or other
similar means accepted within the same mode of transmission.
C. Any seller subject to the provisions of subsection B of this
section shall either conduct business at a location in this state or
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comply with the provisions of Section 1022 of Title 18 of the
Oklahoma Statutes.
D. As used in this section, "debit card" means any instrument
or device, whether known as a debit card or by any other name,
issued with or without fee by an issuer for the use of the
cardholder in depositing, o btaining or transferring funds from a
consumer banking electronic facility .
E. For purposes of this section, a private educational
institution as defined in paragraph (e) of Section 3102 of Title 70
of the Oklahoma Statutes, a private school defined as a nonpublic
entity conducting an educational program for at least one grade
between prekindergarten through twelve, a municipality as defined in
paragraph 5 of Section 1 -102 of Title 11 of the Oklahoma Statutes or
a public trust with a municipality as its be neficiary may charge a
service fee. The service fee shall be limited to bank processing
fees and financial transaction fees, the cost of providing for
secure transaction, portal fees, and fees necessary to compensate
for increased bandwidth incurred as a result of providing for an
online transaction.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2-418 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
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1. "Electronic payment fee " means any additional amount, in
excess of a surcharge authorized pursuant to Section 2 -417 of this
title and taxes, imposed at the time of the sales or lease
electronic transaction by the seller or less or that increases the
charge to the buyer or lessee;
2. "Electronic transaction " means a transaction which is
initiated and processed using electronic means. "Electronic
transaction" does not include paper -based transactions such as paper
checks or cash; and
3. "Ordinary and necessary expenses " include, but are not
limited to, rent payments, mortgage payments, utility payments,
maintenance expenses, food expenses, clothing expenses, life, health
and accident insurance, taxes, installment payments, medica l
expenses, support expenses when the individual is legally
responsible, higher education tuition, and expenses for state
government issued documents and licenses.
B. Unless specifically authorized by law, no seller or lessor
shall impose an electronic pa yment fee on a buyer or lessee in any
sales or lease electronic transaction for ordinary and necessary
expenses.
SECTION 4. This act shall become effective November 1, 2022.
58-2-10252 AQH 01/19/22