Back in August 2023, Governor Phil Murphy signed legislation to avoid surcharges for credit card transactions that were not communicated in advance and that were greater than the cost to the seller for credit card payments.
As a customer, you should know your rights and we aware of certain unscrupulous actors charging abusive credit card fees, in some cases much higher than the merchant fees charged to them.
As a business owner, you need to make sure you are compliant with this law, 1) communicating in advance to any charge for goods and services and 2) disclosing the amount charged previously, which allows a fixed fee or a different fee for each type of card (i.e. Visa, Amex, etc.) as far as the amount charged to the customer is not higher than the fee from the merchant processor.
This measure will impact more industries like retail or food services, so it is important to be aware of these relatively new requirements. If you do not comply, then, you might be reported to the Office of Consumer Protection and then, you might be subject to fines and penalties, among other measures.
Link NJ Office of the Governor – Governor Murphy Signs Legislation to Safeguard New Jersey Consumers Against Unfair Credit Card Surcharges
Link NJ Consumer Affairs – Credit Card Surcharges Frequently Asked Questions
