TRENTON – In a move aimed at enhancing transparency and fairness for consumers, Governor Phil Murphy has signed A4284/S3508 into law, a legislation that prohibits certain surcharges for credit card transactions and establishes notice requirements regarding such surcharges.
This legislation builds on the Murphy Administration’s commitment to protecting consumers in New Jersey, particularly those in low- and moderate-income brackets. It aims to eliminate unfair practices that have become more prevalent in the post-pandemic economy.
Governor Murphy emphasized the importance of adapting to the evolving economy to safeguard consumers against unjust practices. He asserted that today’s legislation signifies New Jersey’s ongoing efforts to ease financial pressures on families and enhance financial transparency in transactions.
The newly enacted law is welcomed by Cari Fais, Acting Director of the Division of Consumer Affairs, who sees it as a tool that provides consumers with greater price transparency and empowers the Division to take action against merchants profiting from credit card surcharges.
Several lawmakers expressed support for the legislation, underscoring the need to eliminate surprise credit card fees and create uniformity in what consumers can expect from businesses. The law ensures that sellers pass on only the processing fees they are charged, rather than profiting from customers using cards over cash.
Senator Gordon Johnson emphasized that as cash usage diminishes, the law’s provisions become vital in preventing businesses from taking advantage of the situation. Senator Nellie Pou added that the law would shield residents from a practice that disproportionately affects low-income individuals.
Dana Lancellotti, CEO of the NJ Restaurant and Hospitality Association, expressed appreciation for the law and noted that surcharge fees, while not new, have become widespread in many industries. She reiterated the association’s support for federal legislation that would promote competition among credit card processing companies, thereby benefiting both businesses and consumers.
The new legislation marks a significant step toward maintaining fairness and transparency in credit card transactions, aligning with New Jersey’s broader commitment to consumer protection and financial integrity.