2013 -- H 5213

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LC00787

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS --

SURCHARGES ON CREDIT CARD TRANSACTIONS

     Introduced By: Representatives Lombardi, Almeida, Shekarchi, Craven, and Williams

     Date Introduced: January 31, 2013

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

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REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

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     CHAPTER 26.2

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SURCHARGES ON CREDIT CARD TRANSACTIONS

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     6-26.2-1. Legislative intent. -- It is the intent of the general assembly to promote the

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effective operation of the free market and protect consumers from deceptive price increases for

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goods and services by prohibiting credit card surcharges and encouraging the availability of

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discounts by those retailers who wish to offer a lower price for goods and services purchased by

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some form of payment other than credit card.

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     6-26.2-2. Definitions. -- As used in this chapter:

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     (1) "Consumer" means the person named on the face of a credit card to whom or for

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whose benefit the credit card is issued by an issuer and shall include any employee or other agent

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or authorized user of the card;

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     (2) "Credit card" means any instrument or device, whether known as a credit card, credit

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plate, or by any other name, issued with or without fee by an issuer for the use of the cardholder

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in obtaining money, goods, services, or anything else of value on credit; and

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     (3) "Person" means an individual or corporation, partnership, trust, association, joint

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venture pool, syndicate, sole proprietorship, unincorporated organization, or any other legal

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entity; and

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      (4) "Retailer" means a person who furnishes money, goods, services, or anything else of

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value upon presentation, whether physically, in writing, verbally, electronically or otherwise, of a

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credit card by the cardholder, or any agent or employee of such person.

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     6-26.2-3. Surcharges on credit card transactions prohibited. -- (a) No retailer in any

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sales, service, or lease transaction with a consumer may impose a surcharge on a cardholder who

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elects to use a credit card in lieu of payment by cash, check, or similar means. A retailer may,

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however, offer discounts for the purpose of inducing payment by cash, check, or other means not

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involving the use of a credit card, provided that the discount is offered to all prospective buyers

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and its availability is disclosed to all prospective buyers clearly and conspicuously.

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     (b) A consumer shall not be deemed to have elected to use a credit card in lieu of another

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means of payment for purposes of this section in a transaction with a retailer if only credit cards

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are accepted by that retailer in payment for an order made by a consumer over a telephone, and

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only cash is accepted at a public store or other facility of the same retailer.

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     (c) Charges for third-party credit card guarantee services, when added to the price

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charged by the retailer if cash were to be paid, shall be deemed surcharges for purposes of this

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section even it they are payable directly to the third party or are charged separately.

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     6-26.2-4. Penalties. -- Any retailer who violates the provision of this chapter shall be

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guilty of a misdemeanor punishable by a fine not to exceed five hundred dollars ($500) or a term

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of imprisonment up to one year, or both.

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     6-26.2-5. Exemptions. -- Nothing in this chapter shall prohibit any retailer from

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conditioning acceptance of a credit card on a consumer's minimum purchase. Each retailer shall

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disclose any such minimum purchase policy orally or in writing at the point of purchase. For the

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purposes of this section "at the point of purchase" includes, but is not limited to, at or on a cash

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register, in an advertisement or menu.

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     SECTION 2. This act shall take effect upon passage.

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LC00787

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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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     This act would prohibit retailers from imposing surcharges on consumers who utilize

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credit cards to purchase goods, services or lease transactions in lieu of payments by cash, check

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or similar means. Violations would be punishable by fine or imprisonment or both.

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     This act would take effect upon passage.

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LC00787

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