DLCA to Start Enforcing Law Mandating Credit Card as Payment Option, With Hefty Fines for Violators
The Dept. of Licensing and Consumer Affairs on January 1, 2022 will commence enforcement of a law that mandates credit card as one of two payment options that businesses grossing more than $50,000 a year must offer.
2021-11-22 12:14:42 - VI News Staff
DLCA suggested in a release that the law, which took effect in February 2020, needed to be enforced now more than ever because of the Covid-19 pandemic and the push toward minimizing paper transactions. "When Act 8205 was signed into law in 2019, the existence of the Coronavirus was not contemplated and neither was the uncertainty of whether the virus was spread via the handling of cash, either paper or coin on the date the law was to take effect. Fast forward 21 months to November 2021 and we are more aware of what we must do to protect ourselves as much as possible from Covid-19. As such, on or about January 1, 2022, DLCA shall commence to enforce the requirement for establishments to accept at least two forms of payment: Cash and either Credit Card or Debit Card," the department said.
The law exempts some businesses, including mobile vendors (those selling food at events), farmers certified with the Dept. of Agriculture, fishermen certified with the Dept. of Licensing and Consumer Affairs (D.L.C.A.), and businesses grossing less than $50,000 annually. Taxi drivers are also exempt from this law as well.
The bill, sponsored by Senator Kurt Vialet, had received strong pushback from some members of the community and some lawmakers, who contended that no business should be forced to offer alternative forms of payment aside from cash.
But Mr. Vialet during various hearings defended his legislation. "We have become a society that utilizes technology a real lot and for some reason we utilize technology in the confines of our home and when we go on a plane. But then we have different expectations here in the Virgin Islands. This bill would allow a number of entities to become competitive," Mr. Vialet said while defending the measure before it was signed into law.
The senator also sees a boon for the Government of the Virgin Islands relative to the collection of taxes, as the Bureau of Internal Revenue (B.I.R.) currently has a difficult time determining how much money cash-only operations make — and therefore struggles with taxing these operations. “The bill goes on to provide certain transparency methods that can be utilized by the Bureau of Internal Revenue, including posting requirements (letting customers know that more than one form of payment is offered)… and receipts,” Mr. Vialet said. “A number of jurisdictions do mandate that customers must receive a receipt, and this bill says [for] any purchase of over $5 a customer must be given a receipt.”