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New NYS Law to Clarify Disclosure of Credit Card Surcharges Takes Effect

The new consumer protection law that amends and clarifies New York’s existing credit card surcharge law (NYS GBS § 518) went into effect on February 11, 2024.  The NYS Division of Consumer Protection (“DCP”) assists aggrieved consumers in the marketplace and the New York State Attorney General and local governments will have the authority to enforce the credit card surcharge law.


The law, signed by Governor Hochul on December 13, 2023, provides greater transparency and protections for consumers by:

  • Limiting credit card surcharges to the amount charged to the business by the credit card company; and

  • Requiring businesses to post before checkout:

    • the total price of an item or service inclusive of the credit card surcharge; or

    • a two-tiered pricing option, which requires the credit card price to be posted alongside the cash price.

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% surcharge will apply for credit card purchases.

  • “This business has a 4% 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% if paying with a credit card.”


NOTE: This law does not apply to debit cards.


The law will permit local governments to join in the enforcement of this law, providing consumers with additional resources for compliance and providing local governments with broader opportunities to promote consumer protections for their citizens. If there are any issues related to credit card pricing at the register, DCP encourages consumers to:

  • File a complaint with DCP to receive a refund of any excess fees paid to a merchant in New York State, or

  • File a complaint with the Attorney General or participating local governments for enforcement of a merchant you believe violated the law.


If you have any questions regarding the law, please contact our Corporate & Business team at 585-258-2800 or email info@underbergkessler.com

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