Massachusetts is considering legislation that will make it legal for merchants to surcharge payments made with credit cards. Currently, Massachusetts is one of only a few states where surcharging is illegal.
The bill includes restrictions and requirements merchants must adhere to if they wish to surcharge. Key requirements include disclosure of the surcharge fee before payment and printing the surcharge amount on the receipt. Additionally, surcharge fees cannot exceed the cost to process the card payment. Discounts to induce customers to pay by cash or check are allowed provided the merchant posts a notice disclosing the discount.
Some supporters promote the bill as a way to make Massachusetts more affordable for small businesses who have seen their credit card processing fees grow as consumers shift away from cash to digital payments. However, passing these costs on to consumers will make purchases less affordable for consumers.
The bill (S.2819), which is sponsored by the Senate Joint Committee on Consumer Protection and Professional Licensure, passed out of committee on January 7th and was referred to the Senate Committee on Rules.
