Client Alert 

February 12, 2024

New York Credit Card Surcharge Law Updated

On December 13, 2023, Governor Kathy Hochul signed a bill updating and clarifying New York’s credit card surcharge rules. This law is now in effect and businesses must comply with the updated credit card surcharge requirements as follows:


Businesses in New York are now permitted to charge customers a processing fee (or surcharge) when a customer pays with a credit card. However, this surcharge must be included within the advertised price, and the advertised price must be clearly and conspicuously posted. Additionally, the updated law states that the surcharge cannot exceed the processing fee imposed by the credit card company.


Businesses are still prohibited from advertising one price but charging a higher price at checkout when a customer elects to pay with a credit card. A common example of prohibited conduct is when a business advertises one price, but posts a sign stating, “A 3% service charge will be added to all credit card purchases.” Businesses may still offer a discount (in the amount of the surcharge) to customers who pay with cash.


The updated law does not prohibit businesses from offering a two-tiered pricing system, where both a cash price and credit card price are advertised (often seen on gas station pumps). Furthermore, this law does not apply to debit cards. A surcharge may be added to purchases made with a debit card, so long as notice of the debit card surcharge is clearly displayed before a purchase is made.


Violations of this law are punishable by a fine up to $500 per violation.


Businesses should review their current pricing practices to ensure compliance with the updated legal requirements. 

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.

This memorandum is published solely for the informational interest of friends and clients of Ellenoff Grossman & Schole LLP and should in no way be relied upon or construed as legal advice.