Senate rejects bill to raise merchant returned-check fee from $15 to $20

The Senate voted on Senate Bill 56, which would have raised the statutory cap on merchant returned-check service charges from $15 to $20, and the measure failed under roll call after a tie/insufficient majority was recorded.

Senator Bueller introduced the measure, saying the last cap change had been in 1988 and presenting a handout summarizing a survey of 54,000 returned checks that showed average merchant costs around $24. “It does not require this charge. It merely allows merchants to charge up to $20 if they so choose,” Bueller said.

Several senators pushed back on the proposal and the cost breakdown. Senator Hall asked whether banks or collection agencies could add additional charges; Bueller said the bill governs merchant charges only and does not affect bank fees. Senator Wharton and Senator Black warned consumers could be charged both by a merchant and a bank, potentially doubling costs; Wharton said the result could be that a bounced check “is gonna charge me $15 bad check... Now I've got $30 on that 1 check. This bill will make that $40.”

Senator Black criticized the itemized cost breakdown in Bueller’s handout and said many line items (postage, telephone, copies) appeared padded. Bueller defended the data as reflecting aggregated merchant costs and deterrent value.

On a roll call taken under suspension of the rules, the clerk reported an initial count and then a final tally noting 13 ayes, 13 nays and 3 absent, resulting in failure to pass the bill (the Senate requires 15 votes to pass on that procedure). The Senate returned to other business and adjourned.

Next steps: The bill failed on the floor and will not move forward unless reintroduced.