13-1-15. Convenience fee; when appropriate.

As used in this Code section, the term:#

1. (1)

   “Actual cost” means the amount paid by a lender to a third party or the amount incurred by a third party for the processing of a payment made by electronic means. If a lender or merchant is a subsidiary of an entity that processes payments made by electronic means, the parent entity shall be considered a third party.#

2. (2)

   “Payment by electronic means” means the remittance of an amount owed through the use of a credit card, debit card, electronic funds transfer, electronic check, or other electronic method.#

In addition to any other charges, interest, and fees permitted by law and subject to the terms and conditions of the debit card or credit card acceptance agreement, a lender or merchant may collect a nonrefundable convenience fee from any person electing to utilize an option of payment by electronic means. Such convenience fee shall be in an amount that represents the actual cost to a lender or merchant; provided, however, that in lieu of the actual cost, a lender or merchant is authorized to collect a convenience fee which does not exceed the average of the actual cost incurred for a specific type of payment made by electronic means for which such lender or merchant imposes a convenience fee, or a fee of up to $5.00, whichever is greater.#

No convenience fee shall be charged unless a lender or merchant also provides a direct payment option by check, cash, or money order or payment by electronic means in which no convenience fee is imposed.#

Any lender or merchant imposing a convenience fee as provided for in this Code section shall provide clear disclosure of such fee prior to imposition. Such notice shall include the dollar amount of such fee, a statement that such fee is nonrefundable, and a statement that such fee is charged for payment by electronic means.#

This Code section shall apply only to loans made pursuant to Chapter 1 of Title 7, installment loans made pursuant to Chapter 3 of Title 7, retail installment and home solicitation sales contracts entered into pursuant to Article 1 of Chapter 1 of Title 10, motor vehicle sales financing contracts entered into pursuant to Article 2 of Chapter 1 of Title 10, and insurance premium finance agreements entered into pursuant to Chapter 22 of Title 33; provided, however, that a convenience fee authorized under this Code section shall not constitute interest, an additional charge, a time price differential, a finance charge, or a service charge within the meaning of Code Section 7-3-12, 10-1-4, 10-1-33, or 33-22-9.#

Nothing contained in Code Section 7-4-18 shall be construed to amend or modify the provisions of this Code section.#