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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022 )
HOUSE BILL 4351 By: Hill
AS INTRODUCED
An Act relating to the Uniform Consumer Credit Code ;
defining terms; allowing surcharges in certain
transactions; limiting surcharge amount; requiring
certain disclosures; limiting application of
surcharge in a single transaction; prohibiting
surcharges in certain transactions; creating
liability for violation ; allowing surcharges under
certain agreements; repealing 14A O.S. 2021, Section
2-417, which prohibits surcharges; amending 14A O.S.
2021, Section 2-211, which relates to discounts;
deleting surcharge prohibition; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sect ion 2-418 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
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;
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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 amount of the total transaction amount, that a
seller or lessor pays its processor or service provider to process
the transaction; and
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 charge card.
B. In accordance with this section, a seller or lessor in any
sales or lease transaction may impose a surcharge on a buyer or
lessee who elects to use a credit card or charge card in lieu of
payment by cash, check , or similar means.
C. A seller or lessor may impose a surcharge 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 transaction. A seller
or lessor that imposes a surcharge on credit cards or charge cards
shall post signage at t he 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:
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"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
TRANSACTION, AND PURSUANT TO S ECTION 2-418 OF TITLE 14A OF THE
OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
SURCHARGE IN AN AMOUNT NOT TO EXCEED 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 surcharge at an
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 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 2-418 OF TITLE 14A OF THE
OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
SURCHARGE IN AN AMOUNT NOT TO EXCEED THE MERCHANT DISCOUNT FEE THAT
THE SELLER OR LESSOR INCURS IN PROCESSING THE SALES OR LEASE
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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.
D. For any goods or services purchased or leased through
payment by credit card or charge card, the seller, l essor,
processor, or service provider shall provide the surcharge amount
imposed as a separate line item on the customer 's receipt.
E. A seller or lessor may impose only a single credit card or
charge card surcharge per sales or lease transaction.
F. A seller or lessor shall not impose a surcharge if a
customer elects to pay for goods or services by:
1. Using cash or check;
2. Using a debit ca rd, whether or not a personal identification
number is used;
3. Processing a payment as a debit payment; or
4. Redeeming a gift card.
G. A seller or lessor who violates this section violates the
Uniform Consumer Credit Code and is subject to liability u nder the
Code.
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H. A seller or lessor may impose a surcharge under this section
regardless of any contract or ag reement that the seller or lessor
enters into on or after the effective date of this act.
SECTION 2. REPEALER 14A O.S. 2 021, Section 2-417, is
hereby repealed.
SECTION 3. 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 oth erwise 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
constitute a credit service charge 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. No seller in any sales
transaction may impose a surcharge on a cardholder who elects an
open-end credit card or debit car d 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 than in accordance with the regulations of the
Administrator must make the discl osures required by those
regulations.
B. A seller who is registered with the United States Treasury
Department as a money transmitter pursuant to 31 CFR, Section
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103.41, and who provides an electronic funds transmission service,
including service by telep hone and the Internet, may charge a
different price for a funds transmission service based 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
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, obtaining 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 beneficiary may charge a
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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 a n
online transaction.
SECTION 4. This act shall become effective November 1, 2022.
58-2-8663 AQH 01/04/22