NY ditches hidden credit card surcharges with updated law
NY ditches hidden credit card surcharges with updated law. Businesses in New York must clearly state the higher credit card price of an item and limit their surcharge amounts after an updated law goes into effect. The updates, which don't apply to debit cards, look to clarify credit card surcharge pricing for consumers and credit card surcharges to the amount charged to the business by the credit card company. Those who violate the law could receive fines up to $500 per violation.
Here's what businesses can do:
- list the higher credit card price next to a lower cash price
- list the credit card price for items and services, then let customers know they will receive a discount for using cash
- change all prices to the credit card price
And here's what businesses can't do:
- put signs on their wall or at the register notifying a fee is applied to all credit card sales
- advertise that all prices include a cash discount that doesn't apply to credit card purchases
- charge separate line items like convenience fees, service fees, administration fees, non-cash adjustments, technology fees or processing fees to credit card users on the customer's receipt
- include a credit card surcharge warning on the price tag or menu
In New York State, the New York State Attorney General has authority to enforce these laws and the Division of Consumer Protection is charged with assisting aggrieved consumers in the marketplace. Consumers can best support their complaints by submitting evidence of noncompliance, which may include pictures of the advertised price and fees, receipts with fees assessed, merchant’s location details, etc.
New York has created this guide about hidden credit card surcharges under the updated lawLink with examples of what can and can not be done.
