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S 194

Darci Strickland retirement

2025-2026 Regular Session Introduced by Tameika Isaac Devine

Cap credit-card surcharges to the seller's actual processing cost and require clear upfront disclosure to customers at all channels (in-person, online, mobile, or phone).

Introduced and adopted
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Bill Summary · S 194

Bill Summary — S 194 (2025)

Title shown in docket header: An Act relative to transparency in credit card fees

Note: The bill metadata includes inconsistent items (a different short title referencing school security guards and out-of-state sponsors). This summary relies on the bill text filed with the Massachusetts Senate (S.194 / Senate Docket No. 851), which amends Chapter 140D, §28A and deals with credit‑card surcharge limits and disclosure.

Main purpose

To limit and require disclosure of merchant surcharges imposed on customers who pay with credit cards for transactions occurring in Massachusetts. The bill caps surcharges at the merchant’s actual cost to process the credit‑card payment and requires clear, advance notice to customers about any surcharge.

Key provisions

  • Replaces existing paragraph (2) of subsection (a) of G.L. c.140D, §28A with two new paragraphs:

    1. Prohibition on excessive surcharges: A seller may not impose a surcharge greater than the seller’s actual cost to process the credit‑card payment for transactions occurring in the Commonwealth.
    2. Mandatory disclosure: If a seller imposes a surcharge, the seller must disclose the surcharge amount to the customer before the customer incurs any charge:
      • For in‑person sellers (non‑restaurants): post clear and conspicuous notice on a sign at the point of sale.
      • For restaurants: post clear and conspicuous notice in the customer service area and on the menu.
      • For internet, mobile app, or kiosk transactions: provide clear electronic notice on the checkout page prior to processing the transaction.
      • For telephone transactions: provide verbal notice prior to processing the transaction.

  • The bill text does not specify the mechanism for calculating “actual cost,” enforcement penalties, or an effective date in the excerpt provided; enforcement would be pursuant to existing authorities under Chapter 140D unless otherwise specified elsewhere.

Who is affected

  • Merchants and other sellers who accept credit cards for transactions in Massachusetts (including restaurants, retailers, e‑commerce platforms, kiosks, and call centers).
  • Consumers using credit cards in Massachusetts who may be charged surcharges.

Likely impacts

  • Consumers: greater price transparency and protection from surcharges that exceed merchants’ processing costs.
  • Merchants: may need to (1) determine and document their actual per‑transaction processing costs, (2) adjust point‑of‑sale and online systems to limit surcharges, and (3) update in‑store signage, menus, website checkout pages, and phone scripts to provide required notices. This may increase compliance and administrative costs for some businesses.
  • Payment processors and card networks: potential downstream effects as merchants reconcile surcharge limits with contractual network rules.

Procedural status (selected timeline)

  • Introduced in Senate: 2025-01-22 (Senate Docket No. 851), presented by Sen. Joanne M. Comerford.
  • Referred to Committee on Finance and Committee on Consumer Protection and Professional Licensure (dates in Jan–Feb 2025).
  • Hearing scheduled: 2025-06-02.
  • Advanced to and amended on Third Reading (T 194A) and ultimately PASSED SENATE: 2025-06-09.
  • Delivered to the House/Assembly and referred to Economic Development: 2025-06-09.

If you would like, I can:
- Compare this proposed language to current Massachusetts law on surcharges and to other states’ approaches; or
- Draft a short Q&A for merchants explaining compliance steps (calculating costs, signage text, online checkout language).

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

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