Increasing Transparency: New York's New Credit Card Surcharge

In December 2023, New York State Governor Kathy Hochul a law designed for greater consumer protections and more transparency when it comes to credit card surcharges.

What Exactly Does This New Law Mean?

This law which went into effect on February 11, 2024 amends and clarifies New York’s existing credit card surcharge law. According to the Governor's website, this law is designed to limit credit card surcharges to the amount charged to the business by the credit card company, and require 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.

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. - New York State Governor Kathy Hochul

Examples of Do's and Don't for New York State Businesses

DO: A business is allowed to list the credit card price for items and services, then let customers know they will receive a discount for using cash.

DO: A business can list the higher credit card price next to a lower cash price.

DON'T: A business cannot display a price tag of an item that shows “$10.00, + 4 percent if paying with a credit card.”

DON'T: A business cannot post a sign on the door and at the register stating an additional 3.9 percent surcharge will apply for credit card purchases.

This new law does not apply to debit cards.

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

For more clarification, information, and enforcement about the credit card surcharge law, visit New York State Governor Kathy Hochul's website.