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Bill

S 278

An Act relative to credit card surcharges

194th Legislature (2025-2026) Introduced by Jake Oliveira and 1 co-sponsor

Massachusetts bill establishing regulations on when merchants can charge customers additional fees for credit card payments to balance business costs against consumer protection.

Accompanied a new draft, see S2819
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WeVote Research Nonpartisan
Bill Summary · S 278

Legislative bill overview

S 278 would regulate credit card surcharges in Massachusetts by establishing rules around when and how merchants can charge customers additional fees for using credit cards. The bill aims to protect consumers from unexpected or excessive surcharges while allowing businesses reasonable ability to offset payment processing costs.

Why is this important

Credit card surcharges directly affect consumer costs at checkout and can vary widely by merchant and card type. This creates potential for confusion, hidden fees, and unfair pricing practices. Clear state-level rules provide consumer protection while also giving merchants clarity on permissible pricing practices.

Potential points of contention

  • Merchant cost recovery vs. consumer protection: Businesses argue surcharges help offset 2-4% processing fees, while consumer advocates worry surcharges are used as hidden price increases beyond actual costs
  • Disclosure and transparency requirements: Disagreement likely exists over how prominently surcharges must be displayed (at entrance, on menu, at checkout) and whether advance notice is sufficient
  • Interaction with federal law: Credit card networks (Visa, Mastercard) have their own surcharge rules; state law must either align with or intentionally diverge from these, creating compliance complexity

Compiled from official sources — confirm details with the bill’s official record.

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