Payments Dive: “Colorado scraps ban on credit card surcharges”
“CardX CEO Jonathan Razi and Chief Operating Officer Michael Tomko ‘worked closely’ with the Colorado house representatives and merchant groups, Tomko said by email.
‘The strong bipartisan support for the bill, the final version of which passed the House 61-4 and Senate 30-4, was informed by recognition that surcharging, when implemented properly, benefits not only businesses, but also consumers,’ Tomko said by email. He argued that merchant price hikes on goods and services to cover the credit card interchange fees was essentially a tax on the poor, while more affluent cardholders that receive rewards, such as cash-back, benefited.
‘A consistent pricing model nationwide is important for CardX as a service provider because many businesses that don’t yet accept cards, or only allow card payments in limited contexts, will start offering card payment options once surcharging is available, and we believe that regulatory clarity and consistency is a win for our clients, consumers, and the card issuers alike,’ Tomko said by email.”