[Second Reprint]

ASSEMBLY, No. 4284

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED JUNE 16, 2022

 

 

Sponsored by:

Assemblyman  PAUL D. MORIARTY

District 4 (Camden and Gloucester)

Assemblywoman  SADAF F. JAFFER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman  LISA SWAIN

District 38 (Bergen and Passaic)

 

Co-Sponsored by:

Assemblywomen Chaparro, Quijano and Assemblyman Calabrese

 

 

 

 

SYNOPSIS

     Prohibits seller from imposing certain surcharge for credit card transactions; establishes certain notice requirements regarding surcharge.

 

CURRENT VERSION OF TEXT

     As amended by the General Assembly on November 21, 2022.

  

An Act concerning credit card surcharges and supplementing P.L.1960, c.39 (C.56:8-1 et seq.). 

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    As used in this act:

     ¹["Consumer" shall have the same meaning as provided in section 1 of P.L.1974, c.146 (C.56:11-1).]¹

     "Credit card" means a card, plate, ¹charge card, charge plate,¹ or other single credit device that may be used from time to time to obtain credit. 

     "Goods" means any beverage, chattels, foodstuffs, products, or wares of any type or description but shall not include "motor fuel."

     "Motor fuel" means any combustible liquid or gaseous substance used, or suitable, for the generation of power to propel motor vehicles. 

     "Restaurant" means an establishment in which the principal business is the sale of food or beverages for consumption on or off the premises. 

     "Seller" means a person who sells ¹, leases,¹ or rents goods or services to a ¹[consumer] customer¹.

     "Surcharge" means any additional amount imposed by a seller at the time of a credit card transaction that increases a charge to a ¹[consumer] customer¹ for the use of a credit card. 

 

     2.    a.  A seller shall not impose on a ¹[consumer] customer¹ who uses a credit card for a transaction ¹occurring in New Jersey¹ a surcharge that is greater than ¹[the actual cost to the seller to process the credit card payment] ²[2.5 percent of the total amount being paid by the customer¹] the actual cost to the seller to process the credit card payment².

     b.    A seller that imposes a surcharge on a ¹[consumer] customer¹ to process a credit card payment shall disclose the amount of the surcharge to a ¹[consumer] customer^{1 2}, prior to the customer incurring any charge for goods or services, by providing verbal notice to the customer and² by posting clear and conspicuous notice on a sign at the point of ¹entry and point of¹ sale, ¹[or] and¹, for any restaurant, on a sign in the customer service area ¹[or] and¹ on ²[a printed ¹or online¹] the² menu, except:

     (1)   if the seller is processing a credit card payment for a transaction that will occur through an Internet website or mobile application, the seller shall provide clear and conspicuous electronic notice ¹on the homepage and checkout page of the Internet website or mobile application¹ prior to processing the transaction; or

     (2)   if the seller is processing a credit card payment for a transaction that will occur over the telephone, the seller shall provide verbal notice prior to processing the transaction.

     c.     A violation of this section is an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.). 

 

     3.    This act shall take effect immediately.