BOSTON (WWLP) – In service of their goal to make Massachusetts more affordable for small businesses, lawmakers advanced a proposal that would move the burden of credit card fees from businesses to consumers.
As fewer and fewer customers pay with cash, a spending habits trend born out of the COVID-19 pandemic, Bay State businesses’ credit card fees are mounting. In response, a Senate committee advanced a bill with a favorable recommendation that would allow businesses to pass on these fees to customers.
Businesses continue to have low confidence in Massachusetts conditions
The bill draws from three proposals, and it allows the fee to be charged to the customer. It requires businesses to notify customers of the surcharge for all in-person, online, and over-the-phone purchases. Businesses must also inform customers if there are incentives or discounts to pay with cash.
As it stands, businesses say fees are hurting their margins. This is especially true for restaurants. One restaurant business leader said in a June hearing that each purchase has a fee between 1.7 and 3.95%, as well as a 15-cent charge per credit card swipe…