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Panel hears bill to ban credit-card surcharges, proponents cite savings for seniors
Summary
House Bill 7,409 would prohibit retailers from imposing surcharges for credit-card payments; sponsor and senior advocates said the measure protects consumers on fixed incomes, while members asked about potential retailer responses such as cash discounts or rounding.
Chairman Bennett introduced House Bill 7,409 to prohibit retailers from charging customers an additional surcharge for using credit cards.
The sponsor said the bill would prevent what he called a ‘‘money grab’’ that disproportionately affects seniors and others on fixed incomes. He noted several neighboring states already have similar prohibitions and argued the change would increase transparency and keep money in consumers’ pockets.
Frank Bruzzi, a Cranston resident, testified in support and told the committee the bill would ensure a price on the tag or service is the final price for all customers. Bruzzi said businesses typically can deduct credit-card fees from taxable income and questioned whether consumers are being ‘‘double-dipped.’'
Committee members asked practical questions, including whether retailers might raise base prices and offer a cash discount (which would have the same effect) and how rounding practices since elimination of the penny influence outcomes. Chairman Bennett and other supporters said existing statutes and case law in other states provide models that prevent discriminatory pricing tied to payment method.
The hearing on HB 7,409 concluded with testimony in favor from multiple citizens and organizations who had signed in but did not testify live. No committee final action on the bill’s merits was recorded at the hearing.
