Massachusetts Businesses Could Have You Shoulder Credit Card Fees?

Paying by credit card could get more expensive for Massachusetts shoppers

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You may have noticed that some businesses offer customers discounts when paying by cash instead of a credit card. I have noticed these policies at a couple of different places where I have used a credit card as payment. One restaurant I went to over the summer in Springfield included a discount on my meal if I paid the bill in cash. In addition, there is a dry cleaning business that I go to in Berkshire County regularly that offers a 5% discount when paying by cash, which I usually take advantage of.

A New Massachusetts Bill is On the Table, Potentially Shifting Credit Card Fees from Businesses to Customers

More and more people are paying for goods and services with credit cards over cash, and businesses are taking the brunt of it. As a result, there's a bill on the table for Massachusetts that, if passed, would allow businesses to charge customers paying with cards for those fees. One key element is that the seller has to make it clear to the customer that they will be shouldering the fee, whether the communication is done in-person, online, or over the phone, depending on the method used to make the purchase.

In addition, the seller or business cannot charge a fee or surcharge greater than the actual cost to the seller to process the credit card payment. You can check out the details of the bill by going here. It's worth noting that this bill is not yet law in Massachusetts, as a few other steps need to happen, including signature by the governor. A start date for this potential law is yet to be revealed.