New law clarifying disclosure of credit card surcharges goes into effect in New York State

NEW YORK (WABC) — A new consumer protection law went into effect Sunday amending and clarifying New York’s existing credit card surcharge law.

Now business transactions imposing a credit card surcharge must post the total price of transactions, including the surcharge, prior to the sale.

New York Governor Kathy Hochul signed the law on December 13, 2023.

“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.”

Moving forward, businesses must limit credit card surcharges to the same amount charged by the credit card company.

Also, they must clearly display the total price, including those fees and offer a two-tier option, showing what it would cost if you paid with cash instead.

However, businesses are not allowed to simply put up a sign saying a fee is applied to all credit card sales.

Many New York City residents seem pleased with the change.

“It’s an inconvenience that racks up, there should be awareness,” said one shopper.

“Everything has an extra charge, everything has an extra cost, and it’s just getting a little out of hand,” said Gabby Chanel, a resident on the Upper East Side.

The law does not apply to debit cards, only credit cards.

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