A bill that would prohibit merchants from imposing surcharges on consumer credit card purchases was approved by a state Assembly committee today, legislators announced.

The consumer protection legislation, sponsored by Vincent Prieto, D-Secaucus, Angela Jimenez, D-West New York, and others is now eligible to be voted on by the full Assembly after approval from the Financial Institution and Insurance Committee. There is identical legislation in the Senate, which is also ready to be voted on.

The bill were written after a recent change in credit card regulations allowing merchants to impose a surcharge on consumers when they use a credit card as of Jan. 27. Historically, credit card companies have not permitted retailer surcharging.

Both Senate and Assembly bills created an exemption for gasoline purchases.

“Additional fees nowadays can mean a decrease in how much a consumer can spend on their families using their credit card,” said Prieto. “The amount of the surcharge may seem miniscule on paper, but in the family budget 1.5 to 3 percent could add up to a shorter grocery list or less to spend on gas. The legislation helps consumers take a stand against increased fees on already high credit card transaction costs.”

Retailers who choose to impose the new charge must disclose it on customer receipts -- typically from 1.5 percent to 3 percent of the credit-card purchase -- and post signs revealing it, legislators said. The levy affects only purchases made with credit and charge accounts, not debit cards, according to consumer public advocacy group.

Ten states have banned imposing the new fees including New York, but not Pennsylvania. Merchants associations have said that it is unlikely stores will impose a surcharge for fear of consumer backlash.

“This legislation protects the consumer,” said Jimenez. “And it’s the consumers that will help New Jersey’s economy get back on track.”