A BILL TO BE ENTITLED:
AN ACT TO PROHIBIT THE CHARGING OF A SURCHARGE ON PERSONS WHO ELECT TO USE A CREDIT CARD, OR DEBIT CARD IN LIEU OF PAYMENT BY CASH, CHECK, OR SIMILAR MEANS.
The General Assembly of North Carolina enacts:
SECTION 1. Article 1 of Chapter 75 of the General Statutes is amended by addinga new section to read:
" 75-43. Surcharge for payment by credit card prohibited.
(a) Prohibition. - A person who sells or leases goods or services in this State shall not impose a surcharge on a person who elects to use a credit card, charge card, or debit card in lieu of payment by cash, check, or similar means. As used in this section, the term 'surcharge' means any additional amount imposed at the time of the sales or lease transaction that increases the charge to the buyer or lessee for the privilege of using credit, charge card, or debit card.
(b) Exception. - A person may offer discounts for the purpose of inducing payment by cash, check or other means not involving the use of a credit card, charge card, or debit card, provided that the discount is offered to all prospective buyers.
(c) Violation an Unfair Trade Practice. - A violation of this section shall be an unfair and deceptive trade practice under G.S. 75-1.1."
SECTION 2. G.S. 159-32.1 reads as rewritten:
" 159-32.1. Electronic payment.
Notwithstanding G.S. 75-43, a unit of local government, public hospital, or public authority may in lieu of payment by cash or check, accept payment by electronic payment as defined in G.S. 147-86.20 for any tax, assessment, rate, fee, charge, rent, interest, penalty, or other receivable owed to it. A unit of local government, public hospital, or public authority may pay any negotiated discount, processing fee, transaction fee, or other charge imposed by a credit card, charge card, or debit card company, or by a third-party merchant bank, as a condition of contracting for the unit's or the authority's acceptance of electronic payment. A unit of local government, public hospital, or public authority may impose the fee or charge as a surcharge on the amount paid by the person using electronic payment."
SECTION 3. This act becomes effective October 1, 2011.
5 comments:
It's already a violation of Visa, Mastercard and AmEx's Merchant Agreements to charge fees to use a credit card or impose a minimum dollar amount to charge your purchase. So I don't understand why CC's are even part of the bill.
It also bugs the heck out of me when I'm asked to show my ID to use my CC's. I sign my credit card and know where they are at all times, so I don't want a slimy merchant to be looking at my ID with personal information on it. The merchants always say they have to see an ID due to people taking and using cards fraudulently. Well, they are wrong about that and I refuse every single time. Visa/MC and AmEx have included in their merchant agreements that a merchant may NOT make presenting a ID a condition of completing a sale. If a merchant has a concern at POS (point of sale), they may call their Authorization line and declare a Code 10 which will require the customer speak to the agent to authenticate they are who they are.
Bill, I think that ultimately no one will look at ID's to use a card. Already at my business people will give their co workers a card and ask them to make a purchase for them. So Jane comes up with Robert's card wanting to buy something. Cards are replacing cash.
Our average ticket is about $5 and 40% of our sales are via card. I have taken a card for a 60 cent item and paid a 35 cent transaction fee to the card company to do it. The swipe fees that the card companies are excessive and Europe has cut them
As far as charging a fee goes, you are right, the card agreements already state that you can't charge a fee or require a minimum purchase to use the card (that way they can reward their customers for using the card and stick the merchants with the bill). So what does the merchant do? You raise your prices about 2% to cover the cost of paying the banks. Enjoy your new price structure.
I just want everyone to know that I was asked to submit this. I think Harry's point is valid about the banking fees. They should not be allowed to mandate a fixed cost fee and then tell the merchant that they have to allow customers to use a card for minimal purchases. Personally, I don't use a debit card, because as a consumer you also pay a transaction fee. That customer that paid that 60-cents is also paying a fee on that tiny purchase on top of taxes. This is the reason why people are going broke. They are allowing themselves to be feed to death.
You can look at the issue Harry speaks of, but what about the Maximum withdrawal limits that a lot of Banks are imposing on these cards. I was behind a woman the other day in a store trying to make a $1,300 purchase and her Debit card could only be used for $1,000 so she had to use another card for the remainder of the purchase.
And that money sitting in the Bank is supposed to be your money.
The following is an e-mail that I received from one of the Hound's readers:
While I would support such legislation because it directly affects my purse strings...still...it's flawed.
The merchant is not the enemy here, and I don't believe you can beat that game at the merchant level. It's the banks who are
charging the excess fees "just because they can." They've found a loophole in the new regulations. All merchants will do is up their retail prices by 4 or 5% so everyone can pay the
same price and their fees are covered. Even the consumer who gets a discount for cash will be paying extra anyway because they're dealing with an inflated price in the first place. It's a no win...unless legislation points the gun at the ones responsible. No matter what happens, we'll not go back to a check-writing/cash society. Fees are here to stay and they will continue to increase until somebody levels it out
with the banks.
I worked 6 years for (a local oil
Company)...who owns a dozen convenience stores. I know how that game works at the retail level. Every increase...whether it be tax, rising prices or credit card fees is passed on to the end user. It's hidden in the price they pay. So...tell me how this proposed law will help consumers in it's present text? Yes, it will make sure everybody pays the same...and everybody will pay more.
My real issue is the transparency issue. When the card issuers give the customer a reward and the merchant has to pay the bill, the card holder doesn't see where the fees come from and only reacts to the incentives given them. Let them pay a direct fee, ie the actual costs associated with the use of the card and they will immediately go back to cash in droves.
However, the gov't doesn't like to print money because of the cost and it is easier to trace and record a person's transactions when they use a card so those weasels probably don't regret the change to card transactions anyway. thank you big brother.
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