2022 -- S 2738 | |
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LC005575 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
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A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS-- | |
SURCHARGES ON CREDIT CARD TRANSACTIONS | |
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Introduced By: Senator Maryellen Goodwin | |
Date Introduced: March 24, 2022 | |
Referred To: Senate Commerce | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL |
2 | REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 26.2 |
4 | SURCHARGES ON CREDIT CARD TRANSACTIONS |
5 | 6-26.2-1. Legislative intent. |
6 | It is the intent of the general assembly to promote the effective operation of the free market |
7 | and protect consumers from deceptive price increases for goods and services by prohibiting credit |
8 | card surcharges and encouraging the availability of discounts by those retailers who wish to offer |
9 | a lower price for goods and services purchased by some form of payment other than credit card. |
10 | 6-26.2-2. Definitions. |
11 | As used in this chapter: |
12 | (l) "Consumer" means the person named on the face of a credit card to whom or for whose |
13 | benefit the credit card is issued by an issuer and shall include any employee or other agent or |
14 | authorized user of the card; |
15 | (2) "Credit card" means any instrument or device, whether known as a credit card, credit |
16 | plate, charge card, charge plate, or by any other name, issued with or without fee by an issuer for |
17 | the use of the cardholder in obtaining money, goods, services, or anything else of value on credit |
18 | or payable in full when due, including revolving or non-revolving credit or charge account; |
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1 | (3) "Person" means an individual or corporation, partnership, trust, association, joint |
2 | venture pool, syndicate, sole proprietorship, unincorporated organization, or any other legal entity; |
3 | and |
4 | (4) "Retailer" means any person who furnishes money, goods, services, or anything else of |
5 | value upon presentation, whether physically, in writing, verbally, electronically or otherwise, of a |
6 | credit card by the cardholder, or any agent or employee of such person. |
7 | 6-26.2-3. Surcharges on credit card transactions prohibited. |
8 | (a) No person or retailer doing business in Rhode Island in any sales, service, or lease |
9 | transaction with a consumer may impose a surcharge on a consumer who elects to use a credit card |
10 | as payment unless such person or retailer complies with the following requirements: |
11 | (1) Displayed prices, including, but not limited to, advertisements, shall display the total |
12 | price charged to consumers using a credit card, or if the person or retailer elects, two (2) prices, one |
13 | of which is the price charged to consumers using a credit card and the other is the price charged to |
14 | consumers using an accepted form of payment other than a credit card. |
15 | (2) A notice shall be posted that explains the impositions of the surcharge, the amount of |
16 | the surcharge and which credit cards are subject to the surcharge. Such notice shall be clearly and |
17 | conspicuously posted at the point of entry and the point of sale. If the sale of goods, services or |
18 | lease transaction is processed through a website or mobile device, the person or retailer must post |
19 | such notice on the home page and the point of sale webpage. If the sale of goods, services, or lease |
20 | transaction is processed over the phone, such notice including all required information shall be |
21 | verbally disclosed to the customer. The notice required by this section shall be prominently and |
22 | conspicuously posted at the required locations in a minimum size 16 pt font. |
23 | (3) No surcharge shall exceed one percent (1%) of the total transaction or the actual amount |
24 | to be charged to the person or retailer to process the credit card transaction, whichever is less. |
25 | (b) A person or retailer may offer discounts for the purpose of inducing payment by cash, |
26 | check, or other means not involving the use of a credit card; provided that, the discount is offered |
27 | to all prospective buyers and its availability is disclosed to all prospective buyers clearly and |
28 | conspicuously. |
29 | (c) A consumer shall not be deemed to have elected to use a credit card in lieu of another |
30 | means of payment for purposes of this section in a transaction with a person or retailer if only credit |
31 | cards are accepted by that person or retailer in payment for an order made by a consumer over a |
32 | telephone, and only cash is accepted at a public store or other facility of the same person or retailer. |
33 | (d) Charges for third-party credit card guarantee services when added to the price charged |
34 | by the person or retailer if cash were to be paid, shall be deemed surcharges for purposes of this |
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1 | section even if they are payable directly to the third party or are charged separately. |
2 | 6-26.2-4. Penalties. |
3 | Any person or retailer who violates the provision of this chapter shall be guilty of a |
4 | misdemeanor punishable by a fine not to exceed five hundred dollars ($500) or a term of |
5 | imprisonment up to one year, or both. Moreover, a violation of this section shall be deemed an |
6 | unfair or deceptive trade practice under chapter 13.1 of title 6. |
7 | 6-26.2-5. Exemptions. |
8 | Nothing in this chapter shall prohibit any person or retailer from conditioning acceptance |
9 | of a credit card on a consumer's minimum purchase. Each person or retailer shall disclose any such |
10 | minimum purchase policy orally or in writing at the point of purchase. For the purposes of this |
11 | section "at the point of purchase" includes, but is not limited to, at or on a cash register, in an |
12 | advertisement or menu. |
13 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS-- | |
SURCHARGES ON CREDIT CARD TRANSACTIONS | |
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1 | This act would provide that surcharges on credit card transactions may only be permitted |
2 | when certain notice requirements are adhered to and would provide for a misdemeanor penalty of |
3 | five hundred dollars ($500) and/or one year in jail for any violations. |
4 | This act would take effect upon passage. |
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