New Jersey Governor Phil Murphy announced Friday that he 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. The bill took effect immediately upon signing. Jonathan Razi, founder of leading surcharging compliance platform CardX, a Stax company, engaged with New Jersey legislators to advocate for a bill that will protect consumers and cap surcharges in a manner that harmonizes with industry rules and other state surcharging laws. “I am proud to assist legislators in creating laws that align with industry standards and surcharging best practices,” said Razi.
“[n]ow consumers will learn about credit card surcharges before they complete a transaction, which will help them make an informed decision about choosing their method of payment.”Tweet this
“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,” said Senator Gordon Johnson (D), one of the bill’s sponsors. As noted by another sponsor, Assemblyman Paul Moriarty (D), “[n]ow consumers will learn about credit card surcharges before they complete a transaction, which will help them make an informed decision about choosing their method of payment.” The bill was also sponsored by Assemblywoman Sadaf Jaffer (D), Assemblywoman Lisa Swain (D), and Senator Nellie Pou (D), and passed both houses of the legislature on June 30, 2023.
Razi added, “Balanced surcharging laws allow businesses to offset the rising cost of credit card acceptance and keep their prices low, while also fostering informed decision-making by consumers. As we have done in the past, CardX will continue to support fair and practical surcharging legislation.” In 2021, Razi testified in support of a Colorado bill that repealed the state’s prohibition on credit card surcharges and replaced it with a law permitting merchants to surcharge 2 percent of the transaction amount or the merchant’s actual cost. Like the New Jersey law, the Colorado bill also established disclosure requirements for surcharging. CardX also previously prevailed in a lawsuit challenging the Kansas surcharging prohibition, resulting in the prohibition being struck down as unconstitutional in 2021, in CardX, LLC v. Schmidt.
To learn more about CardX by Stax and how it supports surcharging that benefits businesses while prioritizing consumer protection, click here.v
New Jersey Governor Phil Murphy announced Friday that he 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. The bill took effect immediately upon signing. Jonathan Razi, founder of leading surcharging compliance platform CardX, a Stax company, engaged with New Jersey legislators to advocate for a bill that will protect consumers and cap surcharges in a manner that harmonizes with industry rules and other state surcharging laws. “I am proud to assist legislators in creating laws that align with industry standards and surcharging best practices,” said Razi.
“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,” said Senator Gordon Johnson (D), one of the bill’s sponsors. As noted by another sponsor, Assemblyman Paul Moriarty (D), “[n]ow consumers will learn about credit card surcharges before they complete a transaction, which will help them make an informed decision about choosing their method of payment.” The bill was also sponsored by Assemblywoman Sadaf Jaffer (D), Assemblywoman Lisa Swain (D), and Senator Nellie Pou (D), and passed both houses of the legislature on June 30, 2023.
Razi added, “Balanced surcharging laws allow businesses to offset the rising cost of credit card acceptance and keep their prices low, while also fostering informed decision-making by consumers. As we have done in the past, CardX will continue to support fair and practical surcharging legislation.” In 2021, Razi testified in support of a Colorado bill that repealed the state’s prohibition on credit card surcharges and replaced it with a law permitting merchants to surcharge 2 percent of the transaction amount or the merchant’s actual cost. Like the New Jersey law, the Colorado bill also established disclosure requirements for surcharging. CardX also previously prevailed in a lawsuit challenging the Kansas surcharging prohibition, resulting in the prohibition being struck down as unconstitutional in 2021, in CardX, LLC v. Schmidt.
To learn more about CardX by Stax and how it supports surcharging that benefits businesses while prioritizing consumer protection, click here.
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