WARNING: NJ Restaurants May Be Illegally Overcharging You

Attention New Jersey residents!

There's a sneaky charge some restaurants have been adding to your bill lately, and it might be illegal.

Have you ever noticed a charge being listed as a “processing fee” at some places?

It usually shows up near the subtotal and total on your bill.

It’s not a set amount across all restaurants.

It seems like each place decides on its' own fee.

So, what exactly is this charge?

It’s an extra fee for using a credit card to pay.

If you pay with cash, you won’t see it on your bill.

This charge helps restaurants avoid paying service fees to the credit card companies, passing the cost onto you, the customer.

While it’s legal for restaurants to do this, it becomes illegal if they charge you more than what they actually have to pay in credit card fees.

For example, if the restaurant’s fee is $1.50 per transaction, charging you a $1.50 “processing fee” is allowed.

But if they charge you more than that, they’re breaking the law.

To protect customers from being overcharged, Governor Phil Murphy signed a law in August 2023.

This new rule makes sure that restaurants are being transparent and fair.

Governor Murphy said, "All residents and visitors doing business in New Jersey deserve the utmost transparency with respect to their transactions."

How can you figure out if you're being charged fairly?

The law requires restaurants to clearly post notices about these fees before you incur them.

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So, keep an eye out for any added charges the next time you go out to eat.

For more details on this New Jersey law, click here.