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

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

As used in this Code section, the term: "Actual cost" means the amount paid 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. "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. No convenience fee shall be charged unless a lender or merchant also provides a direct payment option by check, cash, or money order 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. (Code 1981, § 13-1-15 , enacted by Ga. L. 2015, p. 931, § 1/HB 299; Ga. L. 2017, p. 193, § 27/HB 143; Ga. L. 2020, p. 156, § 8/SB 462.) Effective date. - This Code section became effective May 6, 2015. The 2017 amendment, effective May 1, 2017, in the second sentence of subsection (b), substituted "is authorized to collect" for "may collect"; and, near the beginning of subsection (e), inserted "loans made pursuant to Chapter 1 of Title 7,". The 2020 amendment, effective June 30, 2020, substituted "installment loans" for "industrial loans" near the beginning of subsection (e). See Editor's notes for applicability. Code Commission notes. - Pursuant to Code Section 28-9-5, in 2020, "Code Section 7-3-12" was substituted for "Code Section 7-3-15" near the end of subsection (e). Editor's notes. - Ga. L. 2020, p. 156, § 1/SB 462, not codified by the General Assembly, provides that: "The General Assembly finds and declares that installment lending vitally affects the general economy of Georgia and the public interest and welfare of its citizens; therefore, it is the policy of Georgia and the purpose of this chapter to protect the interest of borrowers and provide for sound, efficient, and responsive regulation of installment lenders." Ga. L. 2020, p. 156, § 10/SB 462, not codified by the General Assembly, provides that: "This Act shall apply to all installment loan agreements entered into on and after July 1, 2020."