Surcharges cannot be applied to prepaid debit or debit transactions. This also applies if a cardholder chooses “credit” as an option when using their debit card. “Consumers may not realize that they can`t be charged extra just because they`re using their credit card,” said Consumer Protection Commissioner Michelle H. Seagull. “But it`s important to pay attention to these illegal charges and avoid paying them before it`s too late.” So what should you do if you`re charged a “convenience fee,” like one of our viewers at a Hartford pizzeria? We do not accuse Connecticut-based business owners of not being aware of restrictions on credit card markups. In fact, we don`t blame you at all! Instead, we want to educate you. It is illegal to charge a customer extra for using a credit card. We`ve recently spoken to many business owners who have been pushed to make an offer by less knowledgeable payment agents and less-than-reputable processors. We`re here to set the record for Connecticut business owners and answer the question: What are the restrictions on credit card supplements in Connecticut? Stephen writes, “I pay my Eversource bill online. If I want to use a credit card on their website, for an additional fee. The case originated in New York when a lawyer noticed a sign at Expressions Hair Design informing clients that they would be charged an additional fee to pay by credit card.
However, the law also stated that a discount is acceptable; “Nothing in this section prevents a seller from offering a discount to a buyer to deceive that buyer by paying in cash, debit card, cheque or similar means instead of a credit card.” Connecticut has amended its Credit Card Surcharges Act, which will go into effect on May 24, 2022, which imposes significant disclosure requirements so that businesses can offer discounts to customers who choose to pay in cash rather than by credit card. [1] [4] Connecticut. Edit. 22-104, § 36(a)(7), amending Conn. Gen. Stat. § 42-133 et seq.; This prohibition also extends to the rental or leasing of real estate. However, the law does not apply to the payment of 1) fees, costs or other fees to authorized government entities; (2) taxes and penalties for the financial situation and municipalities; or (3) fees, costs and other payments of fees to the judiciary.
Merchants in Connecticut and nine other states can only offer customers a “discount” on the use of money, but cannot charge a “surcharge” for using a credit card. A person wants to sell a product for $10 in cash and $10.30 if you pay by credit card. All merchants can charge their customers a convenience fee for using a credit card if the customer uses a non-standard payment channel. For example, if a business primarily accepts payments in person, a convenience fee may be charged if its customer uses an email or phone order. (c) Nothing in this section prevents a seller from offering a discount to a buyer in order to induce that buyer to pay in cash, debit card, cheque or any other means in lieu of a credit card. In order to promote the legal conclusions contained in § 42-133j, no existing or future contract or agreement prohibits a gasoline dealer or dealer from offering a discount to a buyer based on that buyer`s method of payment for that gasoline. Any provision of such a contract or agreement that prohibits such a retailer or distributor from offering such a discount is null and void as a breach of public policy. In the court`s decision, Chief Justice John Roberts wrote that state laws that imitated and expanded these treaty provisions called for review because antitrust proceedings “created uncertainty as to the validity of such contract attribution prohibitions.” Convenience fees are a subset of credit card surcharges and are allowed in all states. However, the laws govern when a company can charge its customers fees and when it cannot. “These so-called convenience fees may be common, but they are not legal in Connecticut. Businesses can offer discounts, but they can`t charge extra for using a credit card.
Know your rights and don`t pay more than you should,” Attorney General Tong said. Have you ever used your credit card, looked at the receipt, and seen something you didn`t expect? The implication is that these state laws are designed to protect credit card companies in case their contractual prohibitions are declared illegal. Unfortunately, there is no research available on the effects of surtaxes and their prevalence in the United States. The next episode was an Investigation by the Australian Government. The survey found that 68% of respondents believe retailers and other businesses should not be allowed to charge customers additional fees for credit card payments. If you believe a business is illegally charging extra for the use of a credit card, contact the Attorney General`s Office at 860-808-5000 or attorney.general@ct.gov or contact the Ministry of Consumer Protection at dcp.complaints@ct.gov. Local officials said the law allows a company to offer a discount if a customer chooses to use a payment method, such as cash, through another type of payment, such as a credit card, but receiving the discount is not the same as adding a surcharge. (d) Nothing in this section prevents a Seller from making the acceptance of a credit card conditional on the minimum purchase made by a Buyer.
Each seller must disclose such a minimum purchase policy verbally or in writing at the time of purchase. For the purposes of this subsection, “place of purchase” includes, but is not limited to, at checkout or at checkout and in an advertisement or menu. Credit card fees can only be charged if a merchant offers another payment method that is different from the way they normally do business. This distinction is that the fees are applied to how the transaction is processed, not to the actual payment method. For the avoidance of doubt, a museum in New York is not allowed to charge a convenience fee at the ticket office if that`s how most people buy their tickets. However, if they launch a program that allows individuals to purchase tickets online by entering their credit card details, convenience fees may be added. Convenience fees are paid due to online payment and not specifically because the customer has used a credit card. The rules governing convenience fees do not apply to government and educational institutions. These organizations are allowed to charge convenience fees in person and online. (e) no travel service supplier may charge a surcharge or reduce the commission paid to a travel agent acting as an intermediary for that supplier where the buyer uses a credit card to purchase that supplier`s travel services; A breach of any provision of this Subsection shall be considered an unfair or misleading commercial practice within the meaning of Article 42-110b(a). For the purposes of this Subsection, “Travel Service Provider” means any person, business or entity engaged in the provision of travel, transportation or vacation services, but not a travel agent, and “Travel Agent” means any person, business, entity or other entity that (1) (A) is a duly appointed agent of a joint carrier, or (B) a member of a cruise line and solely as an agent for cruise lines are engaged in the sale of cruise products or services and (2) offer or sell as an agent for a travel service provider, but not a joint carrier or employee of a joint carrier. The example they gave is that a menu cannot show the “cash price” of an item, but then charges you a fee if you pay by credit card and if the price shown does not match the price shown on your receipt, you must remind the company that a surcharge cannot be calculated based on your payment method, and request reimbursement of expenses.
JANUARY 21, 2021 – Following a recent increase in complaints, Attorney General William Tong and Michelle H. Seagull, Commissioner of the Connecticut Department of Consumer Protection, remind consumers that Connecticut law prohibits businesses from charging customers extra for using a credit card.