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CardX: New Jersey Surcharge Legislation Signed Into Law

New Jersey law imposes reasonable surcharge limitations and disclosure requirements, reflecting input from CardX CEO Jonathan Razi.

ORLANDO, Fla.–(BUSINESS WIRE)–New Jersey Governor Phil Murphy announced Friday that he signed Assembly Bill 4284 into law, which prohibits New Jersey merchants from imposing a credit card surcharge that exceeds the payment processing cost, and requires merchants to clearly disclose the surcharge. The bill took effect immediately upon signing. Jonathan Razi, founder of leading surcharging compliance platform CardX, a Stax company, engaged with New Jersey legislators to advocate for a bill that will protect consumers and cap surcharges in a manner that harmonizes with industry rules and other state surcharging laws. “I am proud to assist legislators in creating laws that align with industry standards and surcharging best practices,” said Razi.

“This law will ensure that sellers are only passing on the processing fees that they are charged rather than making a profit on someone using a card over cash,” said Senator Gordon Johnson (D), one of the bill’s sponsors. As noted by another sponsor, Assemblyman Paul Moriarty (D), “[n]ow consumers will learn about credit card surcharges before they complete a transaction, which will help them make an informed decision about choosing their method of payment.” The bill was also sponsored by Assemblywoman Sadaf Jaffer (D), Assemblywoman Lisa Swain (D), and Senator Nellie Pou (D), and passed both houses of the legislature on June 30, 2023.

Razi added, “Balanced surcharging laws allow businesses to offset the rising cost of credit card acceptance and keep their prices low, while also fostering informed decision-making by consumers. As we have done in the past, CardX will continue to support fair and practical surcharging legislation.” In 2021, Razi testified in support of a Colorado bill that repealed the state’s prohibition on credit card surcharges and replaced it with a law permitting merchants to surcharge 2 percent of the transaction amount or the merchant’s actual cost. Like the New Jersey law, the Colorado bill also established disclosure requirements for surcharging. CardX also previously prevailed in a lawsuit challenging the Kansas surcharging prohibition, resulting in the prohibition being struck down as unconstitutional in 2021, in CardX, LLC v. Schmidt.

To learn more about CardX by Stax and how it supports surcharging that benefits businesses while prioritizing consumer protection, click here.

About Stax

Stax Payments is one of America’s fastest growing fintech companies, recognized by U.S. News & World Report, Fortune, and Inc. for its radically simple payment technology, which has powered more than $30 billion in transactions. Stax Payments empowers more than 30,000 small businesses, large businesses, and software platforms through the industry’s leading all-in-one payments API. Stax’s platform provides merchants and SaaS businesses the ability to manage their payment ecosystem, analyze data, and simplify their customer experience through fully integrated solutions. The one-stop tool allows companies to move faster, think smarter, and make better business decisions through the power of payments.

About CardX by Stax

CardX by Stax is the market leader in compliant surcharging. The CardX payment processing platform automates compliance with the card brand rules and state laws that apply to businesses seeking to eliminate their cost of credit card processing through surcharging. CardX offers best-in-class solutions for payments in all environments, all while delivering a compelling IT and process automation layer. As a regtech company, CardX addresses the staggering complexity of the legal and contractual requirements that apply to credit card surcharging, automating everything from consumer disclosures and card identification to refund proration and receipt management. This end-to-end, fintech-meets-regtech value proposition has established CardX as the leader in this rapidly growing space and made it the trusted name for category leaders seeking industry-best technology.


Annie Versnel

Walker Sands for Stax


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