Last year, New York introduced the “Credit Card Surcharge Law,” which sets limitations on credit card surcharges. This law mandates that surcharges can only match the amount charged to businesses by credit card companies. Businesses are required to display the total price of an item or service, including any surcharge, or provide a two-tiered pricing option. The two-tiered system requires businesses to show both the credit card price and cash price before checkout and allows for advertising cash discounts.
The guidelines specify that businesses must adhere to certain practices: charge only the surcharge amount levied by the credit card company; clearly display total prices inclusive of surcharges; offer a two-tier pricing system with clear disclosure of credit and cash prices; or maintain identical pricing for both cash and credit transactions.
Furthermore, businesses cannot merely post a sign indicating that a fee applies to all credit card sales. Violations of this law may result in a civil penalty of $500 per infraction.
For more information, individuals can refer to New York State Credit Surcharge Guidance.
