By the Division of Banks

Prohibition Against Surcharges For Making Payments Through Credit Cards

Mass. Gen. Laws chapter 140D, section 28A states that "no seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means." This prohibition forbids the imposition of a surcharge by the seller and, in the Division's opinion, also prohibits the seller from hiring a third party to impose the surcharge. To hold otherwise would nullify the objective of said Section 28A.

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