credit cards; interest rate; requirements

Plain English Breakdown

Checked against official source text during the last sync.

Arizona Credit Card Interest Rate and Fee Limits

This bill limits credit card interest rates to 15%, caps late fees at $10, bans surcharges on purchases, applies these rules retroactively for one year, and allows the attorney general to enforce them.

What This Bill Does

• Limits credit card companies in Arizona to charging no more than 15 percent interest on all credit card purchases.
• Caps late fees at a maximum of $10 regardless of the account balance amount.
• Prohibits merchants from adding extra surcharges when customers pay with a credit card.
• Applies the new rules retroactively to cover the twelve months before the law takes effect.
• Allows the attorney general to investigate and take action against violations of these rules.

Who It Names or Affects

• Credit card companies that do business in Arizona
• Merchants who accept credit cards for sales
• Consumers with credit card accounts in the state

Terms To Know

Surcharge

An extra fee added to a purchase price when paying by credit card.

Retroactively

Applying the new rules to time periods before the law officially started, specifically for twelve months prior in this bill.

Limits and Unknowns

• The specific effective date is not listed in the provided text.
• Details on specific penalties or fines beyond attorney general action are not included.

Official Summary Text

SB1623 - credit cards; interest rate; requirements

Current Bill Text

SB1623 - 572R - I Ver

REFERENCE TITLE:
credit cards; interest rate; requirements

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1623

Introduced by

Senator
Gowan

AN
ACT

amending title 44, chapter 35, arizona
revised statutes, by adding article 2; relating to credit card agreements.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 35, Arizona
Revised Statutes, is amended by adding article 2, to read:

ARTICLE 2. INTEREST RATES

START_STATUTE
44-7821.

Credit card interest rates; late fees; surcharge prohibited

A. A credit card company that does
business in this state may charge an interest rate of not more than fifteen
percent for all credit card purchases charged to a credit card account.� A
credit card company may charge a late fee of not more than $10 regardless of
the credit card balance.

B. The fifteen percent interest rate
applies to the previous twelve months of interest that has accrued and been
charged to the credit card.

C. A credit card merchant may not add
a surcharge to any charge that is made using a credit card.

D. The attorney general may
investigate and take appropriate action pursuant to chapter 10, article 7 of
this title.
END_STATUTE

Sec. 2.
Retroactivity

This act applies retroactively to from
and after twelve months before the effective date of this act.

Sec. 3.
Emergency

This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.