wa-law.org > bill > 2023-24 > HB 1727 > Original Bill
Customer payments by credit card have increased by more than 300 percent over the past decade and corresponding transaction fees that are charged for the use of credit cards have increased drastically as well. Unregulated Washington state businesses are allowed to pass along the cost of this credit card transaction fee by disclosing it to the consumer and allowing the consumer to make the choice of using a credit card or paying with another payment method that does not incur a transaction fee.
Just as unregulated businesses in Washington state are allowed to charge a transaction fee for credit card payments, businesses whose fees or charges are regulated by law as to what they can charge for their services should also be allowed to charge a transaction fee for processing a credit card payment. The state of Washington now widely charges a transaction fee for credit card payments for licensing, property taxes, courts, colleges, and other transactions. Fairness and consistency dictate that private regulated businesses should have the same ability to charge consumers for the transaction fee that they are incurring on behalf of the consumer who wishes to pay by credit card so long as a free payment option is available, and the consumer is informed.
Businesses whose fees or charges are regulated in Washington state are allowed to charge a transaction fee for processing a credit card payment provided that:
A no-cost payment option is always available to the debtor; and
The no-cost payment option is disclosed to the debtor at the same time and in the same manner as the debtor's credit card information is taken.
The transaction fee amount shall not exceed three percent of the payment amount.
For purposes of this section "credit card payment" means any payment made by a payment card that incurs an interchange fee, regardless of the type of payment card used.