WICHITA, Kan. – People in Sedgwick County were warned by the district attorney’s office about a recent change in Kansas law that could affect how they spend their money every day.
Retailers in the state can legally add a fee to credit card transactions starting January 1, according to the Consumer Protection Division of the Sedgwick County DA’s Office. This is as long as the customer is given clear notice before the sale.
The DA’s office said that a state law was changed so that “anyone or any retailer offering sales, services, or lease transactions may impose a surcharge on credit card payments, as long as the amount of the surcharge is made clear to the customer at the point of entry or the point of sale and before such transaction.”
“Before this change in the law, Kansas had a law that pretty much-banned surcharges. The only way to discount sales was in cash.” A federal case in 2021, on the other hand, said the ban was illegal because it violated the First Amendment. The DA’s office said this.
Derek Sorrells, a business owner and entrepreneur from Wichita who owns The Arcade, Just a Sip, and Papa’s General Store, said that the extra charge might be good for his company in the long run.
We usually have to pay 3.5%, and that’s true not only for credit cards but also for debit cards. Sorrells said, “For every $100 we spend, we lose $3.05.” “And all of that money adds up to a lot over a year.”
Even though debit cards aren’t listed in the new state law, it is still against the law in all 50 states to charge extra for debit cards.
“In the same way, Kansas state law doesn’t set a maximum surcharge, so federal law sets 4% as the highest amount that can be charged,” the DA said.
Sorrells said, “I have a lot of credit card customers, and that’s how most people pay these days.”
Derek Burrows has been running his store, The Burrow, for more than 13 years. He said that using a credit card can have some problems, even with the cashback choice.
“The store where you bought it gives you the cashback.” “The credit card company isn’t giving up a percent,” he said. “I wish the fees were less.” I’m sure the shop will raise prices to make up for it.
Sorrells and Burrows said that making sure their customers want to come back was very important to them.
Burrows said, “First, I don’t want to charge my customers more.” “It’s a whole new level of confusion, and a lot of people only use credit cards to shop, so it would be hard for them.”
Sorrells said that businesses very likely will have different reactions to the change in the fee.
“I’m sure that more companies will do it now that they know they can.” “But I think a lot of businesses will try to stay away from it,” he added. “As small business owners, one of our goals is to get and keep more customers, so I think a lot of people will stay away from that.”
Leave a Comment