AB 239

Under current law, a consumer credit transaction in which the amount financed

is $25,000 or less, and which is entered into for personal, family, or household

purposes, is generally subject to the Wisconsin Consumer Act (WCA). The WCA

grants consumers certain rights and remedies and contains notice and disclosure

requirements and prohibitions relating to consumer credit transactions, including

consumer credit sales. Under both the WCA and federal law, a credit card issuer

generally may not prohibit a merchant from offering a discount to a customer to

induce the customer to pay by cash, check, or similar means, rather than by use of

a credit card.

This bill prohibits a merchant, in a consumer credit transaction, from imposing

a surcharge (also known as a swipe fee, convenience fee, or checkout fee) on a

customer for using a credit card in lieu of payment by cash, check, or similar means.

However, the merchant may offer a discount to a customer to induce the customer

to pay by cash, check, or similar means, rather than by use of a credit card. A

merchant that violates this prohibition on credit card surcharges is liable to the

customer in the amount of $25 and any actual damages sustained by the customer.