Same on the way in the US it seems. If the Federal CPFB does not implement it, you can back it in that the states will - credit activity is a state to state responsibility and almost all of them have introduced licencing for BNPL. That is what the 6 state shutdown of ZIP in the middle of the year was about and Sezzle had to pay $450,000 in fines and penalties to the state of California in 2020 for operating without a licence.
'In the United States, merchants generally cannot charge extra for Buy Now, Pay Later (BNPL) transactions due to contractual agreements with BNPL providers. However, the regulatory landscape for BNPL is evolving, and this situation may change in the future.
Most BNPL providers prohibit merchants from surcharging BNPL transactions through their contractual agreements.
Merchants typically absorb the cost of BNPL transactions, which can be higher than other payment methods.
Most BNPL providers prohibit merchants from surcharging BNPL transactions through their contractual agreements.
Merchants typically absorb the cost of BNPL transactions, which can be higher than other payment methods.
Regulatory Developments
The Consumer Financial Protection Bureau (CFPB) has taken steps to bring BNPL under stricter regulation:
In May 2024, the CFPB issued an interpretive rule classifying BNPL loans as credit cards under the Truth in Lending Act.
This interpretation may lead to changes in how BNPL transactions are treated, potentially affecting surcharging policies.
Some states are developing their own BNPL regulations, which could impact surcharging practices.
Future Outlook As BNPL continues to grow rapidly, further regulation is likely. This could potentially lead to changes in surcharging policies for BNPL transactions, similar to recent developments in credit card surcharging regulations. While merchants currently cannot charge extra for BNPL in the US, the situation is fluid, and businesses should stay informed about evolving legislation and be prepared to adapt their practices accordingly.'
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