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SD 851

An Act relative to transparency in credit card fees

194th Legislature (2025-2026) Introduced by Jo Comerford

Massachusetts bill requiring credit card issuers to disclose all associated fees transparently to enable informed consumer decision-making and pricing comparison.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 851

Legislative bill overview

SD 851 requires credit card companies to provide enhanced transparency regarding fees charged to consumers and merchants. The bill mandates clear disclosure of interchange fees, annual fees, and other charges associated with credit card transactions before purchase or use.

Why is this important

Credit card fees are often opaque, with consumers frequently unaware of total costs until after transactions occur. This bill aims to reduce information asymmetry between financial institutions and the public, potentially enabling better financial decision-making and increased price competition among card issuers.

Potential points of contention

  • Industry cost concerns: Credit card companies may argue compliance requires significant system changes and administrative costs that could be passed to consumers
  • Federal preemption: Massachusetts state law may conflict with federal regulations governing credit card disclosures (such as TILA-FDASIA), creating legal uncertainty
  • Definition ambiguity: The bill's specific requirements for "transparency" may be unclear, potentially requiring extensive regulatory guidance before implementation
  • Merchant vs. consumer focus: Unclear whether the bill addresses merchant fees, interchange rates, or consumer-facing disclosures—each raises different compliance and competitive issues

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

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