The state has issued a warning after a surge in New Jersey restaurants and retailers charging customers with credit card payment fees without prior notice.
The New Jersey Prosecutor’s Office and the Consumer Protection Agency announced on the 25th that “a warning letter has been sent to 14 New Jersey restaurants and retailers, including restaurants and retailers, that charged customers with fees for credit card payments without prior notice.”
According to the state prosecutor’s office, it is legal for restaurants and retailers to charge customers a fee for credit card payments, but it is illegal unless the customer is notified in advance.
Acting Attorney General Matthew Plakin said, “Consumers have the right to know exactly how much they are paying for a product or service. “If you charge additional fees for card payments, you should make sure customers are informed before they buy a product or use a service,” he said.
If the seller does not notify in advance whether a credit card payment fee will be charged, the Visa Protection Agency has requested that the seller report it through its website (njconsumeraffairs.gov).
In this regard, a bill has been proposed in the state legislature to ban businesses from demanding additional fees from customers that are higher than the fees charged by credit card companies to merchants.
The bill prohibits restaurants and retailers from charging customers with surcharges for using their credit cards that require them to notify them before placing an order and charge customers a fee higher than they pay the with credit card company. The content is the focus.
According to the law, a fine of $10,000 for the first violation and $20,000 for the second or more violations.