Washington State Votes on Credit Card Surcharging Ban

The bill would forbid retailers from surcharging consumers who pay with plastic.

March 06, 2013

OLYMPIA - Washington lawmakers are considering a bill that would forbid merchants from tacking on a credit card surcharge when consumers pay with plastic, the Washington Retail Alliance reports. Currently, 10 states ban retailers from charging shoppers fees for paying with a credit card.

This week, the Washington House will vote on the measure, then send it to the state Senate. But the House sponsors are not sure the Senate will even hear the bill, given that business groups say it€™s not necessary. The proposal would prohibit retailers from putting a surcharge on any debit or credit card payment, but it does not ban cash-only discounts.

As part of the proposed antitrust settlement, "In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation," retailers are allowed to tack on a surcharge of up to 4% of the transaction total. Most national business and consumer advocacy groups have seen little movement on the part of merchants to use this privilege.

"None of our retailers in Washington impose a surcharge. In fact, those who use MasterCard and Visa are contractually prevented from doing so already," said Jan Teague, president and CEO of the Washington Retail Association. "So, it makes no sense to try to turn this into law. €¦ I know of no retailers here who are doing that."

State Rep. Kevin Parker did not support the bill in committee. "This is being dealt with at the national level and it makes more sense there," he said.

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