(23 August 2023 – United States) Rule makers in New Jersey have passed a bill that limits the surcharge applied by merchants and passed on to consumers who want to pay with a card over cash.
New Jersey Governor Phil Murphy signed Assembly Bill 4284 into law, which prohibits New Jersey merchants from imposing a credit card surcharge that exceeds the payment processing cost, and requires merchants to clearly disclose the surcharge.
“This law will ensure that sellers are only passing on the processing fees that they are charged rather than making a profit on someone using a card over cash,” says Senator Gordon Johnson, one of the bill’s sponsors.
Surcharge compliance platform CardX, a Stax company, lobbied for the new legislation after achieving similar breakthroughs in Colorado and Kansas.