January 9, 2018 > Appeals court limits California credit card surcharge law
Appeals court limits California credit card surcharge law
By Associated Press
SAN FRANCISCO (AP) -- A federal appeals court says California can't prevent five businesses from charging additional fees to customers who use credit cards.
The 9th U.S. Circuit Court of Appeals said on Jan. 2 that a 1985 state law that banned credit card surcharges violated the businesses' free speech rights. The case dealt with swipe fees that merchants must pay credit-card issuers each time a customer charges a purchase. The state attorney general's office says surcharges at the cash register mislead customers about a product's true cost.
The 9th Circuit disagreed, noting that the law allowed the businesses to charge cash customers less. The court said the businesses only wanted to communicate the difference as a surcharge for credit card users rather than a discount for cash users.
The California attorney general's office said it was evaluating its options.