A new consumer protection law will go into effect on February 11, 2024. This new law will amend and clarify New York’s existing credit card surcharge law.
“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, 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. See the Department’s Credit Card Surcharge Guidance Document and educational video at https://dos.ny.gov/business-resources for additional examples:
•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.
This law does not apply to debit cards.
If there are any issues related to credit card pricing at the register, the Division of Consumer Protection 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.
Provided information
