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Legal Newsline: “Tech company prevails in challenge of Kansas’ no-surcharge law”

“‘When businesses are unable to pass on the cost of a credit card acceptance as a surcharge, that cost is often built into the costs of all goods and services sold by that business, which in turn raises prices for all customers regardless of whether they use credit or non-credit payment options.’

‘This results in a “cross-subsidy” from non-credit payers to the customers who pay by credit card. For the average credit card user, this amounts to over $1,100 per year.’

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 the full article here.