Debit surcharges targeted by California lawmakers

Debit surcharges targeted by California lawmakers :
A debate has emerged in California over the practice of merchants surcharging consumers when they use debit cards to make purchases at the POS. On one side stand proponents of a California State Senate bill designed to prevent merchants from applying fees to debit and prepaid card purchases.

On the other side are retailers and representative associations who protest that the proposed ban would hurt business. SB 933, authored by California State Sen. Jenny Oropeza, D-Long Beach, passed the Senate on a 22 to 9 vote on June 3, 2010. A date for a floor vote on the bill in the California State Assembly has not yet been set.

The legislation would close what advocates call a 'loophole' in state law that allows merchants to apply surcharges on debit and prepaid card transactions. (Credit card surcharges are already banned under state law.)