AG wants credit card bill passed

PROVIDENCE, R.I. (WPRI) -- Lawmakers are considering a bill that would prevent retailers from charging shoppers an extra fee if they pay with a credit card.

As a result of a November 2012 court decision in New York, the restrictions to keep retailers from passing credit card processing fees on to consumers were removed. Starting late last month, businesses were allowed to impose a 4% surcharge on transactions paid for with a credit card.

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Nine states, including Massachusetts and Connecticut, have statutes that prohibit such practices.

“While some retailers may choose not to impose such a surcharge, it is imperative that we take steps to protect our consumers from that possibility,” Attorney General Peter Kilmartin wrote in a letter of support to House lawmakers. "With Rhode Island retailers already facing loss of business to our border states, this act could potentially help keep business in Rhode Island.”

Kilmartin proposed an amendment to the legislation that would make the penalty a civil violation, versus a criminal penalty, with increased fines for those who violate the act.