A Federal Appeals Court has ruled New York State can ban merchants from passing along credit card transaction fees to their customers.
Some merchants charge consumers a 2-3% fee for paying with a credit card.
New York State passed a law in 1984 that prohibited credit card surcharges. The business argued that the law infringed on their first amendment rights.
The appeals court said blocking businesses from passing along the fee to consumers was not a free speech issue.
The court said businesses are permitted to offer discounts when customers use cash rather than credit cards.