BUFFALO, N.Y. — There will soon be new guidance for businesses in New York State who charge an additional fee to customers who pay with a credit card.
The new guidance will go in effect on February 11, 2024.
According to the New York State Department of State Consumer Protection, businesses have the option of passing on the actual cost of credit card processing fees as a surcharge to customers, but they must be transparent by posting the highest total price (before sales tax is added).
“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.”
“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," said New York Secretary of State Robert J. Rodriguez.
The NYS Department of State Consumer Protection has a list of what businesses can and can't do:
What Businesses can do:
- Clearly display both the credit card price and the cash price
- List the higher credit card price and advertise a discount for cash purchases
- Use the same price for cash and credit card purchases.
What businesses cannot do:
- Put a sign on the wall, or at the register, that says a fee is applied to all credit card sales
- Charge for separate line items like convenience fee, service fee, administration fee, non-cash adjustment, technology fee or processing fee.
- Advertise that all prices include a cash discount that does not apply to credit card purchases
- Include a credit card surcharge warning on on the item price tag
If you think a business might not be following the latest guidance, or you are business that is not sure if they are following the law correctly, you can reach out to the New York State Department of State Consumer Protection website or call 1-800-697-1220.