State lawmakers could crack down on retailers who charge a fee for using credit cards instead of cash.
Many shops and restaurants pass along credit card transaction fees to their customers, allowing them to avoid the surcharge if they pay with cash.
A bill approved by a House committee Tuesday would require businesses to clearly disclose the fees anywhere they advertise that they accept credit cards. And they’d be banned from charging customers a larger amount than the fees set by credit card companies. Businesses that violate the law could face fines of up to $5,000.
Rep. Harry Warren, R-Rowan, is sponsoring the bill, which he says would be less stringent than other states that have recently banned the credit card payment surcharges.
“I think the consumer needs the relief of knowing that they’re not being penalized for using a card when society has pushed us that way,” Warren said. “You haven’t got much choice but to use a card.”
But Warren’s fellow Republican, Rep. Jennifer Balkcom, R-Henderson, worries it could unfairly penalize small businesses.
“I think we need to look at the banking side of it, more than the merchant, because they’re just trying to cover the cost of doing business,” she said.
The bill now goes to the House Finance Committee. Warren said he’s open to working on changes to the bill as it makes its way through the legislative process.
