Nearly twenty states are now considering the implementation of bans on retailers charging extra fees for the use of debit and credit cards in their facilities. Originating in state houses all across the country, eighteen states have pending legislation that seeks to forbid the practice of retailers penalising their customers for using an alternative form of payment. New federal laws have permitted retailers to begin doing this, as a way to help recoup the cost of processing payments made using Visa and MasterCard.
Before the new federal laws went into effect, a total of ten states had laws on the books prohibiting the action of using surcharges to recoup processing fees. While each state's proposal is in varying stages of the process, the state with the most progress on the issue appears to be Utah, which has already passed a bill through the state legislative branch and is awaiting action from the Governor.
The reality of the situation may not end up reflecting the new federal laws, though: virtually no merchants have yet been caught charging an extra fee for using credit cards, as they are fearful that such action will lead to a drop in business and negative public relations.
This does not mean that the retail industry is against the legislation. Many small and large companies have been vigorously lobbying against these state proposals, as it would prevent them from ever being able to utilise that option in the future. Banks are also opposed to the idea as it would remove the perks that they have when negotiating with major card companies over pricing issues.
One state has already implemented a new law in response to the issue: Mississippi. While its reach is very limited, the bill does prevent holders of government debit and credit cards from being charged any fees by retailers or merchants. Another state, Maine, has legislation pending that would weaken the surcharge laws on the books.