PROVIDENCE, R.I.—It isn’t just at the federal level where credit card-related legislation is percolating; various bills continue to be filed in statehouses.
In Rhode Island, Democratic Rep. Deborah Fellela has submitted H7022 in the Rhode Island House of Representatives, which would amend the state’s Unfair Sales Practices law to require businesses to clearly disclose any fees or surcharges that are added when customers pay by credit card.
Fellela said in a statement that surcharges are “a popular option for small businesses who need to offset the costs of accepting those cards,” the Rhode Island Current reported, adding that merchants typically pay around 2% to 3% of a purchase when a customer pays with a credit card, and they can pay more on reward cards, which is why proprietors try to recoup these fees through surcharges.
‘Confusion on Part of Consumer’
“However, since those surcharges can vary from business to business, there is often confusion on the part of the consumer, who may not understand that these charges even exist,” Fellela wrote. “This bill would require an explanation that is clearly visible, rather than one that’s disguised by fine print.”
The Rhode Island Current reported that under Fellela’s bill, which has three other Democratic sponsors, surcharge notices would have to be posted in a conspicuous, clearly visible spot where customers pay for their purchases. At restaurants, the notice would have to be included on all menus. The surcharge amount or percentage would need to be included as well.
‘Deceptive Trade Practice’
“Failure to provide the required notice shall be considered an unfair or deceptive trade practice and subject to enforcement under this chapter,” the legislation reads, the Current stated.
If the bill were to become law this legislative session, it would take effect Jan. 1, 2027.
Fellela’s bill now waits to be scheduled for a hearing in the House Committee on Corporations.
