[Third Reprint]

SENATE, No. 3508

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED JANUARY 26, 2023

 

 

Sponsored by:

Senator  GORDON M. JOHNSON

District 37 (Bergen)

Senator  SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

 

Co-Sponsored by:

Senators Singer, Pou and Ruiz

 

 

 

 

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 Senate on June 26, 2023.

  

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:

     "Credit card" means a card, plate, charge card, charge plate, 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, leases, or rents goods or services to a customer.

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

 

      2.   a.  A seller shall not impose on a customer who uses a credit card for a transaction occurring in New Jersey a surcharge that is greater than the actual cost to the seller to process the credit card payment. ³A seller subject to the provisions of P.L.     , c.     (C.     ) (pending before the Legislature as this bill) shall make available to the Director of the Division of Consumer Affairs in the Department of Law and Public Safety for inspection any account books, papers, documents, and other records necessary to enable the director to determine reasonable compliance with the provisions of P.L.     , c.     (C.     ) (pending before the Legislature as this bill).³

      b.   A seller that imposes a surcharge on a customer to process a credit card payment shall disclose the amount of the surcharge to a customer, prior to the customer incurring any charge for goods or services, ²[by providing verbal notice to the customer and]² by ², in the case of a seller other than a restaurant,² posting clear and conspicuous notice on a sign at the point of entry and point of sale²[, and for any] or, in the case of a² restaurant, on a sign in the customer service area and on the menu, except:

      (1)  if the seller is processing a credit card payment for a transaction that will occur through an Internet website ³[or] , a³  mobile application, ³or an electronic kiosk,³ the seller shall provide clear and conspicuous electronic notice on the ¹[homepage and]¹ checkout page of the Internet website ³[or] ,³ mobile application ³, or electronic kiosk³ 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.