California Credit Card Surcharge Law Held Unconstitutional

A federal appeals court Jan. 3 said a California law that bars merchant surcharges on credit card transactions violates the U.S. Constitution.

The ruling by the U.S. Court of Appeals for the Ninth Circuit means that five California businesses that challenged the law may post a single sticker price on items for sale while charging an extra fee for customers who wish to pay by credit card. Although a lower court went further and struck down the law in its entirety, the Ninth Circuit said its decision only applies to the plaintiffs in this case.

The ruling followed a March ...