“A Chicago-based fintech called CardX LLC won a federal lawsuit in Kansas that declared unconstitutional a law prohibiting retailers from passing along credit card surcharges to customers and advertising lower prices for cash purchases.”Read More
“The complaint alleged that the no-surcharge law violated CardX’s rights under the First Amendment by prohibiting CardX from communicating a credit card surcharge to consumers via its patent-pending software while allowing merchants to offer ‘cash discounts,’ thereby controlling the manner in which prices are communicated to consumers, among other things.”Read More
“The upcoming interchange rate increases are the most significant in a decade and business owners should understand their options for managing costs.”Read More
“‘Businesses operating with tight profit margins often really benefit from surcharging because their alternative for taking cards when rates go up, as they have in the past, is to raise prices on their products,’ CardX’s Razi said. ‘The judge pointed out in our case that such a scenario results in cash and debit payers paying more because someone else is using credit cards.’”Read More
“Allowing credit card surcharges would benefit businesses and consumers, Broomes wrote. Kansas’ no-surcharge law results in merchants spread the cost of using credit cards around to all purchasers, he said.”Read More
“Nash said it was clear that Kansas violated the First Amendment in preventing merchants from explaining the surcharge.
‘We’re obviously very pleased, but we’re not surprised,’ he said of Thursday’s opinion.
Nash noted that after a presentation they made last year in Oklahoma, the state attorney general wrote an opinion that their statute was unconstitutional, so CardX didn’t have to file suit. He said he’s not sure which remaining state surcharge ban CardX will try to undo next.”Read More
“CardX COO Michael Tomko, also a Harvard Law graduate, was also pleased with the decision and noted the court ruling pertained specifically to CardX; he urged service providers to review state guidelines. The court held that prohibiting credit card surcharging was unconstitutional ‘as applied’ to CardX and CardX’s software, leaving open the possibility that the court could challenge the constitutionality of other surcharge solutions, he stated.”Read More
“‘The result in Kansas comes at a key moment for the payments industry,’ said CardX CEO and Harvard Law graduate Jonathan Razi. ‘Surcharging is becoming even more prominent as payments continue to move online, and, with upcoming interchange increases in April, this is timely relief for the many companies that will be looking to reduce their costs of payment acceptance.’”Read More
“With this ruling, only Colorado, Massachusetts, and Connecticut block surcharging on credit cards. Razi says CardX is evaluating its options to enter these states, though he adds, ‘We intend to be a 50-state provider.’ Network rules prohibit surcharging on debit card transactions.”Read More
CardX is proud to be named to Built In’s 2021 list of the top 100 workplaces in Chicago.Read More