251 0 obj Some states' consumer laws prohibit surcharging altogether . Consumer Credit Code 14A-2-417. 0000002004 00000 n
Hunters decision says Oklahomas law does not facially violate the First Amendment, but would if interpreted consistent within the plain meaning of surcharge.. Please check official sources.
Ee7!0U mOM0aOX)^0>\3T4jEt5/"UP+.-bU9]L&[ q|=\PtV~=lq_1Oys#|~qRL(aQ_f78G=4+>1h Credit Card Surcharge Laws by State: A Guide for AEC Pros Oklahoma Statutes 14A-2-417. (2018) - Surcharge for use of credit or Notice of the surcharge must be given at the entrance of the business and . C. For purposes of this section, a private educational institution as defined in paragraph (e) of Section 3102 of Title 70 of the Oklahoma Statutes may charge a convenience fee. 3 o28_7eM/iz Px H%9ETg7Uz[St>g1hvDFpqs,5z3=$ pvzz 3A :?Xm)5e7kHb 248 0 obj Oklahoma is Latest State Looking to Allow Credit Card Surcharges 2018 Oklahoma Statutes Title 14A. Surcharge for use of credit or debit card. Nov. 1, 2015; Laws 2017, c. 31, 2, eff. Student loan relief: 3 things to know as Supreme Court nears - CNBC Jim Daly
A recent Oklahoma opinion released by the states Attorney General provides some welcome (albeit still conditional) clarity on this issue. C. For purposes of this section, a private educational institution as defined in paragraph (e) of Section 3102 of Title 70 of the Oklahoma Statutes, a municipality as defined in paragraph 5 of Section 1-102 of Title 11 of the Oklahoma Statutes or a public trust with a municipality as its beneficiary may charge a convenience fee. General Law - Part I, Title XX, Chapter 140D, Section 28A Q. You can create bill lists by going to Tracked Bills->Manage Bill Lists. Surcharge for use of credit or debit card. In a legal opinion, Attorney General Mike Hunter said a decades-old state law that banned surcharges was likely an unconstitutional restriction on commercial speech. Consumer Credit Code; surcharge; electronic payment fee; effective date. Sitemap. The other states where surcharge bans continue are Kansas, Colorado, Connecticut, and Massachusetts, according to CardX. The decision does provide processors and merchants with much-needed guidance about what kind of pricing scheme would be permissible. this Section. eff. Added by Laws 1977, c. 135, 2, emerg. Would Credit Card Surcharges Benefit Your Business? 245 0 obj Come join the team at the Oklahoma Office of the Attorney General! A. While the Oklahoma opinion adds a few more brush strokes to the larger legislative canvas, it is not conclusive for all possible pricing schemes. 248-351-3000
zS1u}+azh? That fee, called a "surcharge," allows the merchant to recoup the additional processing costs associated with accepting card payments. Bill Text: OK HB4351 | 2022 | Regular Session | Comm Sub 0000006150 00000 n
14A-2-417. Surcharge for use of credit or debit card. - Justia Law endstream <>stream
You're all set! endobj Cap of 4% on surcharges. The development means surcharge bans remain in only four states. 246 0 obj Recent opinion provides welcome clarity on Oklahomas position on surcharge ban enforceability, relating to electronic payment processing, By Nicole Meisner and Daniel Ungar, Attorneys, Jaffe, Raitt, Heuer & Weiss. They should be mindful of state laws and interpretations, as well as the very specific card brand requirements, before implementing a surcharge program, and should continue to closely monitor new legislative and judicial developments on this issue. Until today, Oklahoma was one of five states where we couldnt serve businesses, and this decision means that 94% of the United States by population is now open to credit card surcharging.. 238 0 obj B. Sign up for our free summaries and get the latest delivered directly to you. The Oklahoma law allows discounts for cash or check payments, but not credit or debit card surcharging. This site is protected by reCAPTCHA and the Google, There is a newer version Office of the Oklahoma Attorney General313 NE 21st StreetOklahoma City, OK 73105, Oklahoma City: (405) 521-3921Tulsa: (918) 581-2885Fax: (405) 521-6246. When the second option applies, the surcharge could surpass the 2% cap. Executive Compensation & Employee Benefits, Intellectual Property & Information Technology, Securities Litigation & Enforcement Defense. CFPB, Federal Agencies, State Agencies, and Attorneys General, The NY Attorney General and the plaintiffs in Expressions Hair Design v. Schneiderman have filed a joint motion with the U.S. Court of Appeals for the Second Circuit asking the court to vacate the district courts final judgment in the case, remand with an order to the district court to dismiss the complaint with prejudice, and dismiss the plaintiffs appeal as moot. Continue Reading, The New York Court of Appeals has issued an opinion in Expressions Hair Design v. Schneiderman interpreting the states law that prohibits merchants from imposing a surcharge on credit card purchases (Section 518 of the states General Business Law). C. For purposes of this section, a private educational institution as defined in paragraph (e) of Section 3102 of Title 70 of the Oklahoma Statutes, a private school defined as a nonpublic entity conducting an educational program for at least one grade between prekindergarten through twelve, a municipality as defined in paragraph 5 of Section 1-102 of Title 11 of the Oklahoma Statutes or a public trust with a municipality as its beneficiary may charge a service fee. Are you part of a non-profit, business, government relations firm or association? You already receive all suggested Justia Opinion Summary Newsletters. Brooks in a Friday news release said he sought the official opinion "with the goal of allowing more flexible payment options in Oklahoma that offer benefits to both businesses and consumers. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. You're all set! As the opinion concludes, Many pricing schemes are possible, and we have not considerednor would it be feasible for us to considerhow all possible pricing schemes would fare under the First Amendment. Moreover, it cannot be relied upon in other states. 0000001600 00000 n
Sign up for our free summaries and get the latest delivered directly to you. 242 0 obj Consumer Credit Code 14A-2-417. It was in that context that the Attorney General evaluated Sections 2-211 and 2-417 of Oklahoma's Consumer Credit Code, which allow discounts on purchases made with cash or checks, while banning surcharges on purchases made with credit or debit cards. No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. Surcharge for use of credit or debit card. >_/T+T.Ga All Categories Get free summaries of new opinions delivered to your inbox! Universal Citation: 14A OK Stat 14A-2-417 (2015) A. B. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2-418 of Title 14A, unless there is createda duplication in numbering, reads as follows: As used in this section: "Debit card" means any instrument or device, whether known as a debit card or by any other name, issued with or without fee by Disclosure in credit and charge card applications and solicitation110 14A-3-309.2. June 3, 1977. 0000002690 00000 n
is the practice of charging an additional fee when clients pay by credit card. 604A.002. endobj Credit Card Surcharges: When Merchants Charge You Extra - The Balance Privacy Policy|
Through a law enacted in July 2021 that takes effect on July 1, 2022, Colorado has lifted the ban and will be the 48th state to allow surcharging. hb```b``f`a` B@1v xbb@ In the United States, credit card convenience fees are legal. 0000015202 00000 n
Over the past several years, the number of jurisdictions that prohibit credit card surcharging has diminished as legal challenges have resulted in many laws banning the practice being overturned by the courts. <>/Border[0 0 0]/Contents( \n h t t p s : / / d i g i t a l c o m m o n s . As the opinion explains, Federal courts have invalidated several state statutes that prohibit merchants from imposing surcharges on purchases made with credit cards while simultaneously allowing merchants to offer discounts for making the same purchase with cash or check. These courts found that the statutes regulating what label merchants can use for differentiated pricing constitute impermissible commercial speech regulations and violate the First Amendment. l a w . U-SFT5((MgVaia.G|60Xqj4JX|~ m"+7YSKtu|`w7n:"u =h1"WI]T60Bv_9y/G4FwvR"_e@G-@1A'Ca+ip:A(=mQk|z]I5>;8KMYu(9,K7m6&"=b[(6>l4Zm5JA[bH]dlc 3Q2/ Let us help reduce the cost and improve the client experience associated with accepting payments. Surcharging is the practice of charging an additional fee when clients pay by credit card.. Clients should know what it costs law firms to accept credit cards, and those clients should have the option to save money by paying with less expensive methods. (a) (1) With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a . B. Votes Research Comments Track Introduced Amended Comm Sub Bill Title: Consumer Credit Code; surcharges; effective date. PDF 22 - LegiScan Oklahoma Attorney General, Mike Hunter, in a recent opinion said a state ban on surcharging is most-likely unconstitutional. Surcharge for use of credit or debit card. endobj By continuing to use our site, you accept our use of cookies. As of this year, Oklahoma businesses are allowed to include a credit card surcharge at the point of sale, as long as they make the required disclosures to their customers. e d u / o l r)/Rect[230.8867 231.2727 401.3164 242.9914]/StructParent 4/Subtype/Link/Type/Annot>> PDF Oklahoma Statutes Title 14a. Consumer Credit Code Parties in case challenging constitutionality of NY no credit card surcharge law jointly seek dismissal of complaint and appeal, NY Court of Appeals issues interpretation of NY no credit card surcharge law, CA Department of Financial Protection and Innovation, Conference of State Bank Supervisors (CSBS), Democratic Attorneys General Association (DAGA), National Association of Attorneys General (NAAG), Nationwide Mortgage Licensing System (NMLS), American Bankers Association Dodd-Frank Tracker for CFPB, Nevada enacts amendments regarding working from remote locations for Installment Loan Company licensees and collection of medical debt, SCOTUS holds Biden lacks authority for $430 billion loan cancellation plan, CFSA files brief urging SCOTUS to affirm Fifth Circuit ruling that CFPBs funding is unconstitutional, CFPB issues 2022 Annual Fair Lending Report, FFIEC announces release of 2022 HMDA data. More information on rules and requirements related to surcharging can be found at www.visa.com/merchantsurcharging. <> The Attorney General take a look at Oklahomas ban on surcharges for purchases using credit cards or debit cards, found in 14A O.S.Supp.2019, 2-211, and whether or not it violates the First Amendment to the U.S. Constitution. You can explore additional available newsletters here. Disclaimer: These codes may not be the most recent version. Decision is expected before July. dhpx1r5`{l5rBxp`q(tP/ wX>3Nr Pbf9 !@i2cCJt{ %WY1op
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S0i![an@.9p'LMP%0%{aJ~i Sr aTT12P34A))9UbSr,T L%]H```2u4P4$!yc s&)U i gEo neXQ)O%2Nr`|d wZ, `!)%203b#20 6f@od`` Ee{;HL- J <>/Border[0 0 0]/Contents(Law-LibraryDigitalCommons@ou.edu)/Rect[399.7661 83.6016 418.7505 94.1484]/StructParent 6/Subtype/Link/Type/Annot>> endobj Disclosure requirements for revolving loan account plans secured by consumer's However, thanks to a class action lawsuit in 2013, a large number of states began permitting the practice . Surcharging is the practice of charging an additional fee when clients pay by credit card. Merchants have challenged the constitutionality of these laws in court, sometimes with some confusing results. The reason is that the Oklahoma statute, like most of the statutes at issue in the other cases, does not define the terms surcharge or discount. Because the opinion left open the possibility of alternative statutory interpretations, it could not say definitively that no possible application of the statute is consistent with the First Amendment. Accordingly, it did not find the statute to facially violate the constitution. A.
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However, due to a recent federal lawsuit it is unclear when the Texas law against credit card surcharges can be enforced. While it's illegal for businesses to charge credit card surcharge fees in these states,. Oklahoma Statutes 14A-2-417 (2020) - Surcharge for use of credit or By: Lance Sacknoff Various practices adopted by many small business owners meant to alleviate the hardships imposed by transaction fees, such as creating a "minimum credit card payment" policy, have become commonplace in small business storefronts across the country. The Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws throughout the country, and its skill in litigation defense and avoidance, including pioneering work in pre-dispute arbitration programs. HS>0i;Wz~6U8b6 SH`ApO{yb9Fj~vUhvV~4VZ|a6BqXf[`N90B0q
j kq ^nWi[i,GC4%=\D:*lk"Q"_l}; Here are the five states where it's illegal: Colorado, Connecticut, Kansas, Maine and Massachusetts. (2018) A. Texas law prohibits adding a surcharge for using a credit or debit card as payment. In order to offer a cash discount, the listed price . As federal courts have acknowledged, a law which purports to regulate unfair pricing tactics would be on firmer constitutional ground than one that just regulates price labels. What Is a Credit Card Surcharge? 2023 Merchant's Guide (Rklm?.8Z Merchant, Beware: That Surcharge May Be Illegal | JD Supra Note also that Merchants located in Colorado may not surcharge more than 2% as per State law More information can be found at https://usa.visa.com/support/small-business/regulations-fees.html#2 Same economics, just different presentation. }); Consumer Credit Code; surcharge; electronic payment fee; effective date. August 21, 2022 4 min read By Louis DeNicola Quick Answer A credit card surcharge is an additional fee the merchants can generally charge to help them cover the cost of credit card processing. See our Privacy Policy for more information. The New York Court of Appeals has issued an opinion in Expressions Hair Design v.Schneiderman interpreting the state's law that prohibits merchants from imposing a surcharge on credit card purchases (Section 518 of the state's General Business Law). . June 3, 1977. The current cap on these fees is 4% . On April 30, the Oklahoma governor signed HB 1425, which, among other things, bans surcharges on credit or debit card transactions. <> Colorado is the one exception to this rule. AG Opinion 2019-12 | Oklahoma Attorney General Can you charge your customers a convenience fee? Section 28A. Italian Colors . 0000003622 00000 n
Nicole Meisner and Daniel Ungar are attorneys in the Electronic Payments Practice Group at Jaffe, Raitt, Heuer & Weiss, who concentrate their practice on legal issues surrounding card processing, fintech, money transmitter, mobile payments, ACH, and stored-value systems, both domestically and internationally. As used in . hbspt.cta._relativeUrls=true;hbspt.cta.load(6898615, 'bb89195c-505c-4149-bf81-6b341b25d46a', {"useNewLoader":"true","region":"na1"}); . Amended by Laws 2010, c. 69, 2, eff. The convenience fee shall be limited to bank processing fees and financial transaction fees, the cost of providing for secure transaction, portal fees, and fees necessary to compensate for increased bandwidth incurred as a result of providing for an online transaction. Justia US Law US Codes and Statutes Oklahoma Statutes 2020 Oklahoma Statutes Title 14A. 14A-2-417. Surcharge for use of credit or debit card. - Justia Law You can explore additional available newsletters here. PDF Surcharging Credit Cards-Q&A for Merchants - Visa Oklahoma Law Review - University of Oklahoma xVy~}F0N13`&p"I9:tZ"-"}]{~~x/ c HfE4sowa-n_?B. Thus the overall picture remains unclear. While a number of these practices may seem innocent enough, federal and several states' laws regulate Continue . Get free summaries of new opinions delivered to your inbox! <>/MediaBox[0 0 612 792]/Parent 225 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> 0000003395 00000 n
Attorney general says credit card surcharges ban likely unconstitutional xref 1, 2013, at 4. The AG found that the Oklahoma law, if interpreted in the same way as analogous laws in other states by federal appeals courts, would not survive constitutional scrutiny. 0000001417 00000 n
var tweet_keyword_field = document.getElementById("tweet-keyword-field"); B. Consumer Credit Code 14A-2-417. You already receive all suggested Justia Opinion Summary Newsletters. A key issue in some other states where surcharges have been removed in recent years has been how laws regulated commercial speech, and how merchants could communicate differential pricing to customers in light of their payment card acceptance costs. Bill tracking in Oklahoma - HB 3667 (2021-2022 legislative session Surcharging is when a merchant adds a fee to a customer's credit card transaction. CardX LLC, a Chicago-based tech firm specializing in credit card surcharging programs for merchant acquirers that has been a high-profile proponent of removing state bans, said in the release that it worked with Brooks to identify the issue and call out how this dated statute was impeding the ability of merchants and consumers to adopt a mutually beneficial modern payments technology. Brooks is a member of the state Senates Business, Commerce and Tourism Committee. s|A^k :cZQ {5hiZGz!1tlCq
+f[`1\u[)rb~ypP endobj M. INN. endobj o u . M4TAXIGT6((5,E"*kX~hk@XQ{#op6T|Qw}|VH09>=; ZRlizeWo4Ocb. <>/Metadata 236 0 R/Outlines 193 0 R/Pages 223 0 R/StructTreeRoot 198 0 R/Type/Catalog/ViewerPreferences<>>> Nov. 1, 2010; Laws 2012, c. 221, 2. Second Reading referred to Banking, Financial Services and Pensions. Since card brand surcharging rules prevent firms from charging more for the surcharge than the amount of the transaction, it ends up not being a money-making scheme but a clear way to communicate how much those airline miles really cost. Oklahoma is Latest State Looking to Allow Credit Card Surcharges. PDF Merchant Surcharge Q&A - Visa <>/Border[0 0 0]/Contents(Oklahoma Law Review)/Rect[72.0 650.625 231.9766 669.375]/StructParent 1/Subtype/Link/Type/Annot>> While surcharging has become a common practice in many . Discover Where Surcharging Is Allowed: A Comprehensive Guide Currently, there are several states with laws in place prohibiting surcharges. |
244 0 obj No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. if (event.keyCode === 13) { endobj Oklahoma may have more current or accurate information. June 3, 1977. The convenience fee shall be limited to bank processing fees and financial transaction fees, the cost of providing for secure transaction, portal fees, and fees necessary to compensate for increased bandwidth incurred as a result of providing for an online transaction. Brooks in a Friday news release said he sought the official opinion with the goal of allowing more flexible payment options in Oklahoma that offer benefits to both businesses and consumers. tweet_keyword_field.addEventListener("keyup", function(event) { endobj surcharge | Consumer Finance Monitor 14A OK Stat 14A-2-417 (2014) What's This? HB 1425 takes effect November 1. Here's what we know about the Supreme Court's deliberation over the plan, as of now. Currently, 10 U.S. states have surcharging restrictions including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. Credit Card Surcharge Changes Coming in July 2022. As used in this section, "debit card" means any instrument or device, whether known as a debit card or by any other name, issued with or without fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds from a consumer banking electronic facility.