Attention Merchants: New Jersey’s New Regulations May Have You on Edge!
- September 7, 2023
In a bid to protect consumers, New Jersey has implemented strict limitations on card surcharging. Merchants are now required to limit surcharges to processing fees, ensuring fair transactions for all parties.
New Jersey has recently introduced regulations on credit card surcharging to safeguard consumers’ interests. The legislation, enacted in June with the signature of Governor Phil Murphy, restricts merchants from profiting beyond the actual costs incurred in processing credit card transactions. While merchants are still allowed to levy credit card surcharges, the law aims to establish a robust framework that guarantees consumer protection while upholding industry norms and best practices.
State Senator Gordan Johnson, a key sponsor of the legislation, emphasizes that the law prevents merchants from unfairly benefiting at the expense of consumers who opt for the convenience of credit card payments. CardX, a subsidiary of the esteemed payment processor Stax, closely monitors the evolution of surcharging legislation across the nation and considers New Jersey’s legislation as a prime example of impactful change.
This forward-looking law effectively puts an end to the potential exploitation of consumers who choose to transact via credit cards. State Senator Gordan Johnson, a key sponsor of the legislation, emphasizes that the law prevents merchants from unfairly benefiting at the expense of consumers who opt for the convenience of credit card payments.
The landscape of merchant surcharges can be diverse, yet the credit card companies have the authority to oversee and regulate these charges. Visa Inc., for instance, has recently reduced its surcharge ceiling from 4% to 3%. It’s important to note that the legality of surcharges has evolved over the years. Until 2013, they were entirely prohibited across all states. However, this changed as legal actions paved the way for surcharging in select states. Presently, with the exception of Connecticut and Massachusetts, all states permit this practice.
In essence, New Jersey’s decisive move to rein in profiteering from credit card surcharging signifies a commitment to consumer well-being. By imposing restrictions that align with industry standards and best practices, the state is fostering a fair and transparent commerce environment. It’s imperative for merchants to acquaint themselves with these new regulations to avoid potential penalties and to maintain ethical business practices. As New Jersey sets the precedent, other states may very well follow suit, making it a pivotal moment for the merchant industry nationwide.
At Global Legal Law Firm, we understand the dynamic landscape of electronic payment processing and the intricate web of regulations that surround it. With a wealth of experience spanning decades in ISOs, commercial collections, credit card brands, and other facets of electronic payment processing litigation, our adept lawyers are poised to navigate the complexities of this evolving realm. As the winds of change blow through the merchant industry with New Jersey’s groundbreaking surcharging regulations, allow us to be your steadfast guide. Instead of braving this new and unpredictable terrain alone, let our expertise lead the way, ensuring your compliance and success in this swiftly changing landscape.
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