TRENTON, NJ – State inspectors have reportedly been out during the holiday shopping season to find out which business owners are naughty and which ones are nice.
New Jersey Governor Phil Murphy’s recent enactment of P.L. 2023, c.146, marks a significant step in credit card transaction transparency. This law restricts sellers from applying a credit card surcharge exceeding their processing costs. Aimed at protecting consumer rights, the legislation necessitates clear disclosure of any surcharges to consumers before transactions.
The Division of Consumer Affairs released guidelines to aid both consumers and merchants in understanding and complying with the new law. Key requirements include explicit pre-transaction disclosure of surcharge amounts. For instance, general statements like “We impose a credit card surcharge that does not exceed our processing costs” fall short of the law’s stipulations.
In physical stores, the law requires conspicuous signage about surcharges at both entry points and sales counters. Restaurants must display these details in customer service areas and on all menu forms, including digital versions. The law doesn’t demand a specific signage format, allowing flexibility for businesses.
For online or phone-based transactions, distinct rules apply. Online platforms must display clear surcharge notifications on checkout pages. Telephone transactions necessitate verbal disclosure before processing the payment.
Importantly, the law doesn’t mandate surcharges; it simply regulates them if applied. Surcharges must correlate with the actual processing costs and vary depending on the credit card used. The legislation covers only credit card transactions, and any other fees must also be clearly communicated before the sale.
This regulatory move by New Jersey aims to foster transparency in credit card transactions, safeguarding consumer interests and guiding merchants in fair pricing practices.