Credit card surcharges.

Existing law prohibits a retailer in any sales, service, or lease transaction from imposing surcharges on consumers who elect to use a credit card in lieu of payment by cash, check, or similar means, but permits a retailer to offer discounts to encourage payments by means other than credit cards, as specified. This bill would repeal these provisions. The bill would authorize a retailer in any sales, service, or lease transaction with a consumer to impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means, subject to two requirements. The bill would restrict the amount of the surcharge to be impose to the lesser of the reasonable cost of the transaction to the retailer or 3.5% percent of the transaction. The bill would also require that the retailer to notify the cardholder that the retailer has elected to impose a surcharge on credit card transactions before payment is provided. The bill would except specified utility payments from these provisions.