Douglas lets credit card bill become law
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Vermont Press Bureau - Published: May 24, 2010
MONTPELIER – Gov. James Douglas has decided not to sign a bill passed by legislators to try and limit credit card fees.
But he's also not going to veto it.
By allowing the bill, S.138, to become law without a signature Douglas is able to both register his disapproval of the measure while avoiding a veto fight over it.
The law gives Vermont merchants more flexibility in negotiating terms with the credit card companies, who charge stores each time a customer uses their card. Changes include allowing store owners to set minimum price limits for accepting a card and eliminating the requirement that if a store owner accepts a certain card at one of their stores, that they also have to accept it at their other stores.
The final version of the bill passed unanimously, increasing the possibility of a veto override.
So why not support and sign the legislation? Because, according to Douglas, the measure puts Vermont too far out in front of federal rules.
"With the passage of S.138 Vermont will be the first state in the nation to challenge the rules of the electronic payment system through legislation. This is not without risk to Vermonters and, particularly, those who depend on visitors to our state for livelihoods. Consumers may find that their debit and credit cards are not accepted by certain merchants or in certain situations," Douglas wrote in his non-signing statement back to lawmakers.
"Also, certain electronic payment systems may decide to pull out of the state only offer limited services in Vermont."
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