NY’s New Credit Card Surcharge Law Goes Into Effect–Here’s What It Means
This past weekend while we were chomping on chicken wings, watching football, and learning the news of Beyoncé’s new album, a new law went into effect regarding your credit card transactions.
Under the new law businesses are required to clearly display and inform customers of additional credit card surcharges before the customer checks out.
“Transparency in pricing is critical so people can make informed decisions when spending their hard-earned money. Requiring businesses to disclose credit card surcharges helps consumers better understand the total cost,” stated State Senator Jeremy Cooney.
The law, signed by Governor Kathy Hochul on December 13, 2023, provides greater transparency and protections for customers by:
- Limiting credit card surcharges to the amount charged to the business by the credit card company
- Requiring businesses to post the total price of an item or service, inclusive of the credit card surcharge, before checkout
The new credit card surcharge law also prevents shop owners from charging customers more in credit card surcharges than what they themselves are being charged by the processing companies.
Under the new law businesses must clearly list credit card price for items and services and let customers know they will receive a discount for using cash. For example, businesses can’t just post a sign stating “an additional 3.9% surcharge will apply for credit card purchases” or “$10 + 4% if paying with a credit card.”
To clarify, the law does not apply to debit cards.
Governor Hochul stated:
New Yorkers should never have to deal with hidden credit card costs, and this law will ensure individuals can trust that their purchases will not result in surprise surcharges. Transparency is crucial in building trust between businesses and communities and now patrons will be empowered to budget accordingly.
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