(1)
(a)Except as otherwise provided in sections 24-19.5-103 (3) and 29-11.5-103 (3), a
seller or lessor in any sales or lease transaction may impose a surcharge on a buyer
or lessee who elects to use a credit or charge card in lieu of payment by cash,
check, or similar means in accordance with subsection (1)(c) of this section.
(b)A surcharge is any additional amount imposed at the time of the sales or
lease transaction by the merchant, seller, or lessor that increases the charge to the
buyer or lessee for the privilege of using a credit or charge card.
(c)A seller or lessor may impose a surcharge pursuant to either subsection
(1)(c)(I) or (1)(c)(II) of this section as follows:
(I)An amount not to exceed two percent of the total cost to the buyer or
lessee for the sales or l
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(1)
(a) Except as otherwise provided in sections 24-19.5-103 (3) and 29-11.5-103 (3), a
seller or lessor in any sales or lease transaction may impose a surcharge on a buyer
or lessee who elects to use a credit or charge card in lieu of payment by cash,
check, or similar means in accordance with subsection (1)(c) of this section.
(b) A surcharge is any additional amount imposed at the time of the sales or
lease transaction by the merchant, seller, or lessor that increases the charge to the
buyer or lessee for the privilege of using a credit or charge card.
(c) A seller or lessor may impose a surcharge pursuant to either subsection
(1)(c)(I) or (1)(c)(II) of this section as follows:
(I) An amount not to exceed two percent of the total cost to the buyer or
lessee for the sales or lease transaction. A seller or lessor that imposes a surcharge
on credit or charge cards shall post signage at the seller's or lessor's premises in a
manner that is visible to customers or, for a sales or lease transaction made online,
display before an online customer's completion of the sales or lease transaction in a
manner that is visible to the online customer, the following language:
To cover the cost of processing a credit or charge card transaction, and pursuant
to section 5-2-212, Colorado Revised Statutes, a seller or lessor may impose a
processing surcharge in an amount not to exceed 2% of the total payment made
for goods or services purchased or leased by use of a credit or charge card. A
seller or lessor shall not impose a processing surcharge on payments made by
use of cash, a check, or a debit card or redemption of a gift card.
(II) (A) An amount not to exceed the merchant discount fee that the seller or
lessor incurs in processing the sales or lease transaction. The seller or lessor or the
seller's or lessor's service provider shall calculate the surcharge at an amount not
to exceed the actual amount paid to the processor or service provider to process
the transaction.
(B) A seller or lessor shall post signage at the seller's or lessor's premises in
a manner that is visible to customers or, for a sales or lease transaction made
online, display before an online customer's completion of the sales or lease
transaction in a manner that is visible to the online customer, the following
language:
To cover the cost of processing a credit or charge card transaction, and pursuant
to section 5-2-212, Colorado Revised Statutes, a seller or lessor may impose a
processing surcharge in an amount not to exceed the merchant discount fee that
the seller or lessor incurs in processing the sales or lease transaction. A seller or
lessor shall not impose a processing surcharge on payments made by use of cash,
a check, or a debit card or redemption of a gift card.
(C) The service provider may provide the seller or lessor with the means to
make the disclosure required by this subsection (1)(c)(II).
(d) For any goods or services purchased or leased through payment by credit
or charge card, the seller, lessor, or service provider shall provide as a separate line
item on the customer's receipt the surcharge amount imposed pursuant to
subsection (1)(c) of this section.
(e) A seller or lessor may impose only a single credit or charge card
surcharge per sales or lease transaction pursuant to subsection (1)(a) of this
section.
(f) A seller or lessor shall not impose a surcharge if a customer elects to pay
for goods or services by:
(I) Using cash or a check;
(II) Using a debit card, whether or not a personal identification number is
used;
(III) Processing a payment as a debit payment; or
(IV) Redeeming a gift card.
(g) As used in this subsection (1):
(I) Charge card includes those cards pursuant to which unpaid balances are
payable on demand.
(II) Merchant discount fee means the actual fee, expressed as a
percentage or fixed amount of the total transaction amount, that a seller or lessor
pays its processor or service provider to process the transaction.
(2) A discount offered by a seller or lessor for the purpose of inducing
payment by cash, check, or other means not involving the use of a seller or lender
credit card shall not constitute a finance charge if such discount is offered to all
prospective buyers and its availability is disclosed to all prospective buyers clearly
and conspicuously in accordance with regulations of the administrator.
(3) (a) A seller or lessor who violates this section:
(I) Violates the code; and
(II) Is subject to liability as a creditor under the code.
(b) For purposes of liability for a violation of this section, a buyer or lessee is
a consumer.
(4) A seller or lessor may impose a surcharge under this section regardless
of any contract or agreement that the seller or lessor enters into on or after July 1,
2022.