HB241: HB241 Contracts; convenience fees for payment by electronic means; revise provisions

25 LC 44 3072S/AP House Bill 241 (AS PASSED HOUSE AND SENATE) By: Representatives Rhodes of the 124th, Williams of the 148th, Douglas of the 78th, Chastain of the 7th, Barrett of the 24th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 1 of Title 13 of the Official Code of Georgia Annotated, relating to1 general provisions regarding contracts, so as to revise provisions regarding convenience fees2 for payment by electronic means; to provide for related matters; to repeal conflicting laws;3 and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 1 of Title 13 of the Official Code of Georgia Annotated , relating to general7 provisions regarding contracts, is amended by revising Code Sec tion 13-1-15, relating to8 convenience fee and when appropriate, as follows:9 "13-1-15.10 (a) As used in this Code section, the term:11 (1) 'Actual cost' means the amount paid by a lender to a third party or the amount12 incurred by a third party for the processing of a payment made by electronic means. If13 a lender or merchant is a subsidiary of an entity that processe s payments made by14 electronic means, the parent entity shall be considered a third party.15 H. B. 241 - 1 - 25 LC 44 3072S/AP (2) 'Payment by electronic means' means the remittance of an amount owed through the16 use of a credit card, debit card, electronic funds transfer, el ectronic check, or other17 electronic method.18 (b) In addition to any other charges, interest, and fees permitted by law and subject to the19 terms and condition s of the debit card or credit card acceptanc e agreement, a lender or20 merchant may collect a nonrefundable convenience fee from any person electing to utilize21 an option of payment by electronic means. Such convenience fee shall be in an amount22 that represents the actual cost to a lender or merchant; provid ed, however, that in lieu of23 the actual cost, a lender or merchant is authorized to collect a convenience fee which does24 not exceed the average of the actual cost incurred for a specific type of payment made by25 electronic means for which such lender or merchant imposes a co nvenience fee, or a fee26 of up to $5.00, whichever is greater.27 (c) No convenience fee shall be charged unless a lender or merchant also provides a direct28 payment option by check, cash, or money order or payment by electronic means in which29 no convenience fee is imposed.30 (d) Any lender or merchant imposing a convenience fee as provi ded for in this Code31 section shall provide clear disclosure of such fee prior to imp osition. Such notice shall32 include the dollar amount of such fee, a statement that such fe e is nonrefundable, and a33 statement that such fee is charged for payment by electronic means.34 (e) This Code section shall apply only to loans made pursuant to Chapter 1 of Title 7,35 installment loans made pursuant to Chapter 3 of Title 7, retail installment and home36 solicitation sales contracts entered into pursuant to Article 1 of Chapter 1 of Title 10, motor37 vehicle sales financing contracts entered into pursuant to Article 2 of Chapter 1 of Title 10,38 and insurance premium finance agreements entered into pursuant to Chapter 22 of Title 33;39 provided, however, that a convenience fee authorized under this Code section shall not40 constitute interest, an additional charge, a time price differe ntial, a finance charge, or a41 service charge within the meaning of Code Section 7-3-12, 10-1-4, 10-1-33, or 33-22-9.42 H. B. 241 - 2 - 25 LC 44 3072S/AP (f) Nothing contained in Code Section 7-4-18 shall be construed to amend or modify the43 provisions of this Code section."44 SECTION 2.45 All laws and parts of laws in conflict with this Act are repealed.46 H. B. 241 - 3 -