SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 4107

STATE OF NEW JERSEY

DATED:  JUNE 4, 2026

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4107 (1R).

      As reported, this bill prohibits a seller providing a service or selling goods from charging a surcharge when a customer uses a debit card or gift card to pay for the transaction.

      The bill further provides that if a seller imposes a surcharge on credit card transactions, the seller is required to clearly and conspicuously disclose, prior to payment, that the seller is prohibited from applying a surcharge to payments made by debit card or gift card.

      A violation of the bill is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.  In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that this bill’s prohibition on sellers imposing surcharges on debit, gift, or electronic benefit transfer cards would result in indeterminate annual State revenue increases from penalties and increased expenditure costs from enforcement that may be incurred by the Division of Consumer Affairs in the Department of Law and Public Safety.  The OLS, however, cannot determine the potential costs to the division due to the uncertainty regarding the number of individuals who will be regulated and the specific operational decisions the division will make to implement this bill.

      The OLS anticipates that the bill would result in the annual collection of indeterminate fines and penalty payments from violators of statutory and regulatory requirements.  A violator may receive a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense under the consumer fraud act.