New Jersey limits merchant fees that penalise card holders

New Jersey Governor Phil Murphy signed Assembly Bill 4284 into law, which prohibits New Jersey merchants from imposing a credit card surcharge that exceeds the payment processing cost, and requires merchants to clearly disclose the surcharge.

“This law will ensure that sellers are only passing on the processing fees that they are charged rather than making a profit on someone using a card over cash,” says Senator Gordon Johnson, one of the bill’s sponsors.

Surcharge compliance platform CardX, a Stax company, lobbied for the new legilsation after achieving similar breakthroughs in Colorado and Kansas.

CardX CEO Jonathan Razi, comments: “Balanced surcharging laws allow businesses to offset the rising cost of credit card acceptance and keep their prices low, while also fostering informed decision-making by consumers. As we have done in the past, CardX will continue to support fair and practical surcharging legislation.”