Bill > A651

This bill aims to increase competition and consumer protection in the credit card industry by addressing what are known as "interchange fees," which are fees charged by credit card networks like Visa and MasterCard to merchants for processing credit card transactions. The bill finds that these networks have significant market power, leading to little competition and contracts that disadvantage merchants, who are often forced to accept these fees to stay in business. Because merchants may pass these costs onto consumers through higher prices, and because federal law, specifically the Dodd-Frank Act, only regulates debit card interchange fees, this bill seeks to level the playing field for credit cards. It prohibits "electronic payment systems" (entities that facilitate credit card transactions, excluding national banks) from imposing certain restrictions on merchants, such as controlling how merchants display pricing, preventing them from offering discounts for using cash or other payment methods, limiting their ability to accept or reject certain card networks at specific locations, or dictating minimum or maximum transaction amounts for credit cards. Violations of these provisions will be considered unlawful practices under New Jersey law, and offending electronic payment systems will be required to reimburse affected merchants for any chargebacks, fees, or fines incurred during the period of violation, in addition to other penalties.