Senate bill allows credit card fee, heads to governor’s desk – About Your Online Magazine


The Senate Bill 21-091 would allow sellers to assess a credit card surcharge of up to 2% per transaction.

DENVER – Senate Bill 21-091, a bill that would allow merchants to impose a surcharge on people who use a credit card to pay for sale or rent, now only needs Governor Jared Polis’ signature.

“What this bill does is put bars and transparencies on these fees and limit them to no more than 2%,” state senator Roberto Rodriguez told 9NEWS on Saturday.

Rodriguez, who is one of the project’s sponsors, also chairs the Senate Business, Labor and Technology Committee.

9NEWS contacted the governor’s office to obtain a statement about the bill, and a spokesperson said by email: “The governor considers each bill on its merits and will review the final legislation once it has its own. table.”

explaining the account

Current law does not allow a seller, lessor or company that issues a credit or charge card to impose a surcharge against someone who pays for a sale or lease transaction using a credit card.

This bill would repeal this prohibition, but would limit the maximum per transaction surcharge amount to 2% of the total cost to the buyer, “…for the sale or lease transaction.”

Consumers must also be notified in some way, showing that the surcharge is present.

According to the text of the bill, the surcharge does not apply to cash, check or debit and gift card payments.

The account description at the Colorado General Assembly website describes the result of the violation of the bill, if signed.

“If a merchant imposes a surcharge in breach of the invoice, an individual consumer aggrieved by the breach can request enforcement of the breach as an overcharge under the ‘Uniform Consumer Credit Code – Remedies and Penalties’, says the web page .

mixed feelings

State Senator Rodriguez explained that, if signed, adding the surcharge for a credit card transaction would be optional.

“This cost would be transparent and they have to post that this is being done when the charge is incurred,” he said.

He also added that passing such a law, in the long run, could help reduce consumer costs.

“… with competition, these prices can go down or it can encourage people to use lower prices for cash and/or debit cards, which at some point maybe it lowers prices because, as I said, these costs with Credit cards are what’s going on in the overall cost for general consumers,” he said.

Senator Rodriguez added that, overall, this could help some companies.

“I think trying to be proactive rather than reactive is the best thing to do. For me, this law has always been about giving smaller traders the opportunity to bounce back and not having to increase the costs for everyone with it. this bill, “said Rodriguez. “…we think the 2% limit is not allowing anyone to abuse it.”

On the other hand, defenders like the Colorado Consumer Health Initiative, oppose the surcharge portion of the bill, saying the cost could increase for some who are struggling financially.

“…at the end of the day, adding a 2% surcharge to high-cost needs, whether it’s rent, day care, or mostly medical costs, can add hundreds of dollars to someone’s credit card bill and leave people even more indebted. . And those hundred dollars can turn into thousands of dollars if they can’t pay their credit card right away,” said Adam Fox, the group’s deputy director. “I think we know housing costs are rising and are a growing concern for many, many Colorados who are trying to keep up with these costs. surcharge arrives added, this will only make it much more difficult to maintain the stability of your dwellings and a roof over your heads.”

Fox added that they recognize the need for changes the bill would enact, but the surcharge, he said, needed a closer look at the impact it has on consumers.

“Unfortunately, I don’t think this is the right solution, or at least this solution hasn’t really taken a look at how to protect consumers who are having to put some of these high-cost needs on credit cards,” he said. . “I think it’s important that consumers be aware when these surcharges can be added to their bills.”

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Paula Fonseca