WASHINGTON–On the same day the U.S. Supreme Court heard arguments in a case of credit card surcharges, the National Retail Federation called on the Court to allow merchants “to freely and accurately show customers the added costs that come with paying by credit card rather than cash.”
As CUToday.info reported here, the court heard arguments in the case of Expressions Hair Design v. Schneiderman, which would ban credit card surcharges in the state of New York. Credit unions have been strongly involved on the side of the state of New York, which passed the law banning the surcharges on customers paying via plastic card.
“Retailers have no interest in surcharging their customers for using credit cards,” said Mallory Duncan, SVP and general counsel with the National Retail Federation, in a statement. “That would be the opposite of our goal to bring credit card swipe fees under control. But merchants do want to be able to show customers the cost of using a credit card without running afoul of the law. This case isn’t about surcharging. It’s about giving retailers freedom of speech when they try to give their customers a break for paying by cash. Some states allow cash discounts but prohibit credit card surcharges. A gas station owner shouldn’t be hauled into court for saying gas is $2.90 a gallon cash and $3 credit rather than saying $3 credit and $2.90 cash.”
During oral arguments, justices heard a challenge to laws in 10 states that prohibit merchants from imposing a surcharge when customers use a credit card.