HB 1260 Summary

• Amends Section 2-211 to permit sellers to pass on credit card or debit card processing fees and impose surcharges, reversing the prior prohibition on such charges in consumer credit sales transactions.

• Requires that any processing fees or surcharges be listed as a separate line item on the cardholder's receipt.

• Carves out exceptions for private educational institutions, private schools, municipalities, and public trusts with municipalities as beneficiaries, allowing them to charge service fees limited to bank processing, financial transaction, secure transaction, portal, and bandwidth fees.

• Amends Section 2-417 with identical provisions permitting sellers to pass on processing fees or impose surcharges for credit or debit card use, with the same line item disclosure requirement.

• Effective date: November 1, 2025.