Proposed state law could shift credit card fees from business to customers

SPRINGFIELD, MA (WGGB/WSHM) — Massachusetts businesses could soon be allowed to charge customers fees for using credit cards under legislation that received favorable recommendations from state senators and passed through committee last week. The bill, titled “An Act Relative to Credit Card Surcharges and Transparency in Credit Card Fees,” is sponsored by a joint committee and contains three key provisions that would change how businesses handle credit card transactions.

First, the legislation states that credit card companies cannot stop businesses from offering discounts if customers pay by cash or check. This would give businesses the power to offer savings to customers who choose alternative payment methods.

Second, businesses would be allowed to charge a fee for customers using credit cards. However, the surcharge cannot exceed the business’s actual cost to process that card payment, meaning businesses cannot profit from the fee, but also will not lose money on credit card transactions.

The third provision requires businesses that add credit card surcharges to explicitly tell customers about the fee before the customer is charged. Additionally, the surcharge amount must be printed on the receipt. Specific rules would be put in place about how and where companies would have to show that disclaimer, depending on whether it appears on a menu, online, or over the phone.

On Monday, Western Mass News spoke with consumers about their payment preferences and most said they typically pay with cards rather than cash. Chicopee resident Lia Caballero expressed concerns about the potential fees. “It’s a little pathetic because you shouldn’t have to use more when you’re carrying around your card. You’re carrying around your card for a reason, so then you don’t have to carry cash,” she said.

However, when told that fees would have to be explicitly mentioned upfront, Caballero said she felt better about the proposal. “At least we’ll have a warning to be able to, to be able to know whether we should use cash or card or not,” she added.

We reached out to Senator Jake Oliveira, who is on the committee that is sponsoring this bill. He provided us with a statement that reads:

“I sponsored S.2819 to promote transparency and fairness for both consumers and small businesses. Credit card processing fees continue to rise, and this legislation ensures businesses can recover legitimate costs, while giving consumers clear information before they complete a purchase.”

Western Mass News will continue to monitor the legislation and provide updates when available.

Copyright 2026 Western Mass News (WGGB/WSHM). All rights reserved.