Wednesday, February 21, 2024

New York’s new credit card surcharge law

Starting February 11, a new law will go into effect that will change the current credit card surcharge law in New York State. The law was signed by Governor Kathy Hochul on December 13, 2023. According to the governor’s office, this legislation seeks to provide greater transparency and consumer protection by limiting credit card surcharges to the amount charged by the company on the credit card. credit cards to businesses, and by requiring businesses to post before checkout: the full price of a good or service, including the credit card surcharge, or an option in pricing on two levels, which requires The credit card price is displayed next to the cash price.

This law is basically aimed at eliminating hidden costs associated with credit cards and ensuring that consumers can be confident that their purchases will not result in surprise chargebacks. Transparency is essential to establishing a relationship of trust between businesses and communities, and now customers have the power to adjust their budget accordingly.

Regarding credit card payment reporting requirements, the governor’s office provides examples of what does and does not meet the law’s requirements:
complies with the law: the business shows the highest credit card price next to the lowest cash price.
– Complies with the law: The business shows the credit card price for goods and services and then informs customers that they can receive a discount for paying in cash.
Compliant with the law: the business changes all credit card prices.
Non-compliance with the law: The business posted a sign on the door and at the register indicating that an additional 3.9 percent surcharge applies for credit card purchases.
does not comply with the law: the business has a built-in 4 percent cash discount incentive on all prices. Purchases made with a credit or debit card will not receive the cash discount, and the cost adjustment will be reflected on your receipt.
Non-compliance with the law: a convenience fee, service fee, administrative fee, non-cash adjustment, technology fee, processing fee, etc., are charged to credit card users and added as a separate item to the receipt for the customer.
– Disobeys the law: the price tag of an item shows “$10.00 + 4 percent if you pay by credit card.”

It is important to note that this law does not apply to debit cards. With its implementation, it is expected to increase consumer confidence and ensure greater transparency in commercial transactions in New York.

World Nation News Desk
World Nation News Desk
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