New York Enforces New Law to Protect Consumers from Credit Card Surcharges

 

Credit card users in New York may have noticed a change in the way businesses display their prices. As of February 11, 2024, a new law requires businesses to clearly disclose any additional credit card surcharges before a customer begins to check out.

The law, signed by Governor Kathy Hochul in December 2023, aims to provide greater transparency and consumer protection in the marketplace. Businesses that impose a credit card surcharge must post the total price of the transaction, including the surcharge, prior to the sale. Alternatively, they can list the different prices for both card and cash payments for each item or service.

The law also limits the credit card surcharges to the amount charged to the business by the credit card company, which is usually around 3 to 4 percent. This prevents businesses from profiting from the surcharges or passing on other costs to the consumers.

The new law does not apply to debit cards, which are not subject to surcharges. It also does not prohibit businesses from offering discounts for cash payments, as long as they comply with the disclosure requirements.

Governor Hochul said that the new law will ensure that New Yorkers will not have to deal with hidden credit card costs and that they will be empowered to budget accordingly. The law will be enforced by the New York State Division of Consumer Protection, the New York State Attorney General, and local government. Consumers who encounter any violations of the law can file a complaint with the Division of Consumer Protection or the Attorney General’s office.