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State Announces New Law to Clarify Disclosures of Credit Card Surcharges

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A new consumer protection law will go into effect this Sunday, February 11th clarifying the state’s existing credit card surcharge law. Businesses who impose a credit card surcharge must post the total price of transactions, including the surcharge prior to the sale.

“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,” Governor Hochul said. “Transparency is crucial in building trust between businesses and communities and now patrons will be empowered to budget accordingly.”

The law, which was signed into law by the governor in December, will offer greater transparency and protections to consumers by limiting credit card surcharges to the amount charged to the business by the credit card company and have the business be required to post before checkout the total price of an item or service inclusive of the credit card surcharge and/or a two tiered pricing option that shows the credit card price to be posted alongside the cash price.

“New Yorkers using credit cards have a right to know the total cost of the purchase, inclusive of any surcharge, before they reach the register. This new law signed by Governor Hochul will offer clarity and provide transparency to both the consumer and business owners about the surcharges when using a credit card.” New York Secretary of State Robert J. Rodriguez said.

Governor Hochul’s Office says the following practices and examples comply with the law’s credit card surcharge notice requirements.

DO:

  • The business lists the higher credit card price next to a lower cash price.
  • The business lists the credit card price for items and services, then lets customers know they will receive a discount for using cash.
  • The business changes all prices to the credit card price.

DON’T:

  • The business posts a sign on the door and at the register stating an additional 3.9 percent surcharge will apply for credit card purchases.
  • “This business has a 4 percent cash discount incentive built into all pricing. Any purchases made with a credit or debit card will not receive the cash discount and an adjustment in cost will be displayed on your receipt.”
  • A convenience fee, service fee, administration fee, non-cash adjustment, technology fee, processing fee, etc., is charged to credit card users and added as a separate line item on a customer receipt.
  • The price tag of an item shows “$10.00, + 4 percent if paying with a credit card.”

It is noted debit cards are not applied to the new law. If consumers see any issues related to the credit card pricing at the register, to file a complaint with the Division of Consumer Protection by clicking HERE.

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