2014 -- H 7007

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LC003098

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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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, O`Neill, Canario, Costa, and Giarrusso

     Date Introduced: January 08, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

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

CHAPTER 26.2

SURCHARGES ON CREDIT CARD TRANSACTIONS

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

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

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

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

some form of payment other than credit card.

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

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

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

or authorized user of the card;

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

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

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

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

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

entity; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

of imprisonment up to one year, or both.

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

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

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

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

register, in an advertisement or menu.

     SECTION 2. This act shall take effect upon passage.

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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

***

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

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

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

     This act would take effect upon passage.

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