HB 241: Contracts; convenience fees for payment by electronic means; revise provisions

Georgia law already lets lenders and merchants charge a nonrefundable convenience fee when a customer chooses to pay electronically instead of by cash, check, or money order. This bill revises O.C.G.A. § 13-1-15 to clarify how that fee is calculated and to add a new option: a lender or merchant may charge either the average actual processing cost for that type of electronic payment, or a flat fee of up to $5.00, whichever amount is greater. The bill also clarifies that 'actual cost' includes amounts a lender pays to or incurs from a third-party processor, and it expands the no-fee payment alternative that must be offered alongside any convenience fee to include a form of electronic payment with no fee, not just check, cash, or money order. The fee-disclosure requirements and the limited scope of the law (certain loans, retail installment contracts, motor vehicle financing, and insurance premium finance agreements) remain unchanged.

• Lets lenders and merchants charge a convenience fee equal to either the average actual electronic-payment processing cost or a flat $5.00 fee, whichever is higher.
• Clarifies that 'actual cost' includes amounts a lender pays a third-party processor or amounts a third party itself incurs.
• Requires that a fee-free electronic payment option be offered alongside cash, check, or money order whenever a convenience fee is charged.
• Keeps the existing requirement that lenders and merchants clearly disclose the fee amount and its nonrefundable nature before charging it.
• Leaves unchanged which types of contracts the law covers, including certain consumer loans, retail installment sales, motor vehicle financing, and insurance premium finance agreements.

Lenders and merchants who accept electronic payments, and consumers who pay bills or loans by credit card, debit card, electronic funds transfer, or electronic check under Georgia loan, retail installment, motor vehicle financing, or insurance premium finance contracts.

Consumers who pay electronically could see a convenience fee as high as $5 even when the merchant's actual processing cost is lower, while merchants gain a simpler flat-fee option instead of calculating exact processing costs for every transaction.

• Section 1 revises O.C.G.A. § 13-1-15(a) to clarify that 'actual cost' includes amounts paid to or incurred from a third-party payment processor.
• Section 1 revises subsection (b) to allow a convenience fee of either the average actual cost or up to $5.00, whichever is greater.
• Section 1 revises subsection (c) to require that a fee-free electronic payment option, in addition to check, cash, or money order, be available whenever a convenience fee is charged.
• Subsection (d) keeps the requirement to disclose the fee amount, its nonrefundable status, and the reason for the charge before collecting it.
• Subsection (e) keeps the law's scope limited to specific loan and sales contract types under Titles 7, 10, and 33, and clarifies the fee is not treated as interest or a finance charge.
• Section 2 repeals any conflicting laws.

1. 2025-05-14Effective Date 2025-07-01
2. 2025-05-14Act 305
3. 2025-05-14House Date Signed by Governor (Cámara de Representantes)
4. 2025-04-07House Sent to Governor (Cámara de Representantes)
5. 2025-03-27Senate Passed/Adopted (Senado)
6. 2025-03-27Senate Third Read (Senado)
7. 2025-03-18Senate Read Second Time (Senado)
8. 2025-03-13Senate Committee Favorably Reported (Senado)

• Trey Rhodes (R, HD-124)Patrocinador principal
• Noel Williams (R, HD-148)
• Demetrius Douglas (D, HD-078)
• Johnny Chastain (R, HD-007)
• Carter Barrett (R, HD-024)
• Will Wade (R, HD-009)
• Shawn Still (R, SD-048)

1. AprobadaVotación: Cámara de Representantes27 de febrero de 2025

   160 a favor, 3 en contra (4 sin votar, 13 ausentes)

   Passage: House Vote #107

2. AprobadaVotación: Senado27 de marzo de 2025

   53 a favor, 3 en contra

   Passage: Senate Vote #301

• convenience fees
• consumer loans
• electronic payments
• contract law
• retail installment sales