A new law in New York requires businesses to inform customers about credit card surcharges that will increase their total cost at the register. This law, which takes effect this weekend, mandates that businesses display the total cost of goods or services when paying with a credit card, including any surcharges, before customers check out. Additionally, businesses must pass on credit card surcharges to customers in the exact amount charged by credit card companies. Governor Kathy Hochul stated that the law aims to eliminate hidden credit card costs and provide transparency in purchases, empowering patrons to budget accordingly.
Businesses are required to display the total price inclusive of the credit card surcharge or list separate prices for paying with a credit card versus cash. However, displaying just the percentage that will be added for using credit cards and asking customers to calculate the total will soon be illegal. The new rule does not apply to debit cards. Governor Hochul highlighted the importance of transparency in building trust between businesses and communities and ensuring that individuals can trust their purchases will not result in surprise surcharges. The law aims to eliminate hidden fees and provide clarity for consumers making credit card purchases.
As part of the new law, businesses are required to display certain signs, and those that fail to comply will face consequences. The state department’s website features a video that describes the permissible signs businesses are allowed to display and which will soon be illegal, providing clarity for businesses as they adapt to the new requirements. Ultimately, the law aims to create a fair and transparent environment for credit card transactions in the state of New York.
