[Fifth Reprint]
ASSEMBLY, No. 4284
STATE OF NEW JERSEY
220th LEGISLATURE
INTRODUCED JUNE 16, 2022
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblywoman SADAF F. JAFFER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman LISA SWAIN
District 38 (Bergen and Passaic)
Senator GORDON M. JOHNSON
District 37 (Bergen)
Senator NELLIE POU
District 35 (Bergen and Passaic)
Co-Sponsored by:
Assemblywomen Chaparro, Quijano, Assemblymen Calabrese, Tully, Assemblywomen Mosquera, McKnight, Assemblyman McKeon, Senators Singer, Ruiz and Turner
SYNOPSIS
Prohibits seller from imposing certain surcharge for credit card transactions; establishes certain notice requirements regarding surcharge.
CURRENT VERSION OF TEXT
As amended by the Senate on June 26, 2023.
An Act concerning credit card surcharges and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
1[“Consumer” shall have the same meaning as provided in section 1 of P.L.1974, c.146 (C.56:11-1).]1
“Credit card” means a card, plate, 1charge card, charge plate,1 or other single credit device that may be used from time to time to obtain credit.
“Goods” means any beverage, chattels, foodstuffs, products, or wares of any type or description but shall not include “motor fuel.”
“Motor fuel” means any combustible liquid or gaseous substance used, or suitable, for the generation of power to propel motor vehicles.
“Restaurant” means an establishment in which the principal business is the sale of food or beverages for consumption on or off the premises.
“Seller” means a person who sells 1, leases,1 or rents goods or services to a 1[consumer] customer1 .
“Surcharge” means any additional amount imposed by a seller at the time of a credit card transaction that increases a charge to a 1[consumer] customer1 for the use of a credit card.
2. a. A seller shall not impose on a 1[consumer] customer1 who uses a credit card for a transaction 1occurring in New Jersey1 a surcharge that is greater than 1[the actual cost to the seller to process the credit card payment] 2[2.5 percent of the total amount being paid by the customer1] the actual cost to the seller to process the credit card payment2 . 5A seller subject to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall make available to the Director of the Division of Consumer Affairs in the Department of Law and Public Safety for inspection any account books, papers, documents, and other records necessary to enable the director to determine reasonable compliance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).5
b. A seller that imposes a surcharge on a 1[consumer] customer1 to process a credit card payment shall disclose the amount of the surcharge to a 1[consumer] customer1 2, prior to the customer incurring any charge for goods or services, 4[by providing verbal notice to the customer and2]4 by 4, in the case of a seller other than a restaurant,4 posting clear and conspicuous notice on a sign at the point of 1entry and point of1 sale 4[,]4 1[or] 4[and1, for any] or, in the case of a4 restaurant, on a sign in the customer service area 1[or] and1 on 2[a printed 1or online1] the2 menu, except:
(1) if the seller is processing a credit card payment for a transaction that will occur through an Internet website 5[or] , a5 mobile application, 5or an electronic kiosk,5 the seller shall provide clear and conspicuous electronic notice 1on the 3[homepage and]3 checkout page of the Internet website 5[or] ,5 mobile application1 5, or electronic kiosk5 prior to processing the transaction; or
(2) if the seller is processing a credit card payment for a transaction that will occur over the telephone, the seller shall provide verbal notice prior to processing the transaction.
c. A violation of this section is an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
3. This act shall take effect immediately.