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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif";color:black">Hello Everyone!<o:p></o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Many of you may have read recent articles
<span style="color:black">about the new credit card “surcharge.”</span><o:p></o:p></span></p>
<p><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">The surcharge is the result of the biggest anti-trust settlement in U.S. history. In 2005, a group of merchants claimed that MasterCard, Visa, and nine other companies including JP Morgan Chase
conspired to fix the fees that stores pay to accept credit card purchases. After
<span style="color:black">years of negotiations, the case, which was in the <span class="yshortcuts1">
<span style="color:black">U.S. District Court</span></span> for the Eastern District of New York, settled. The credit card companies and banks agreed to pay $6 billion to the merchants who sued.<o:p></o:p></span></span></p>
<p id="yui_3_5_1_20_1359487765899_237"><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">As part of the settlement, merchants are now allowed to charge customers a fee equal to the cost of accepting cards, typically 1.5 percent to 3 percent of
the purchase price. This new provision became effective <b>January 27, 2013</b>.<o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-family:"Arial","sans-serif"">Merchants are not required to charge customers this new fee. However, if agencies are charged the additional fee when using their SPOTS cards to pay for goods and services, we want to
capture the surcharge separately. Therefore, SFMS and SARS have established a new comptroller object for this purpose.<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-left:.5in"><b><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></b></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo2"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><b><span style="font-family:"Arial","sans-serif";color:black">4735 – Credit Card Surcharges:</span></b><span style="font-family:"Arial","sans-serif""> A credit card surcharge, also known as a checkout fee, is an additional fee
that a vendor may add to the bill when an agency uses a credit card to pay for goods or services.<o:p></o:p></span></p>
<p class="MsoListParagraph"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<div class="MsoNormal" align="center" style="text-align:center;line-height:150%">
<span style="font-family:"Arial","sans-serif";color:#1F497D">
<hr size="2" width="100%" align="center">
</span></div>
<p class="MsoNormal" style="line-height:150%"><u><span style="font-family:"Arial","sans-serif";color:black">Here are some additional items to consider</span></u><span style="font-family:"Arial","sans-serif";color:black">:
<br>
</span><span style="font-family:"Arial","sans-serif"">1. The merchant must provide clear disclosure of the surcharge to buyers at the point of interaction and, if a purchase occurs,
<b><span style="color:black">on the receipt</span></b>.<br>
2. A surcharge <b><span style="color:black">cannot exceed</span></b> <b><span style="color:black">4%</span></b>.
<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:.25in;text-indent:-.25in;mso-list:l0 level1 lfo4">
<![if !supportLists]><span style="font-family:"Arial","sans-serif";color:#1F497D"><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Arial","sans-serif"">It is currently
<b>prohibited by law in 10 states</b> (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas).<span style="color:#1F497D"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Kathy<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Kathryn Ross, CPA</span></b><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Manager, Statewide Accounting & Reporting Services
</span></b><b><span style="font-family:"Verdana","sans-serif";color:#353535"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Chief Financial Office</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Department of Administrative Services</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">155 Cottage Street NE, U-50</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Salem, OR 97301</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif"">Phone: (503) 373-0265<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Fax: (503) 378-3514</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://oregon.gov/DAS/SCD/SARS"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif"">http://oregon.gov/DAS/CFO/SARS</span></a><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt"> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:#353535">Data Classification: Level 1 - Published</span><span style="font-size:8.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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