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New York sets new rules for credit card surcharges: What’s allowed? What’s not?

Starting February 11, New York businesses must adhere to new guidelines regarding credit card surcharges, aiming to enhance transparency for consumers. This initiative follows Governor Kathy Hochul’s approval of Assembly Bill 2672, which mandates clear disclosure of credit card surcharges. Governor Hochul emphasized the importance of transparency in fostering trust between businesses and the community, enabling customers to make informed budgeting decisions.


Under the new guidance from the New York Department of State, businesses are required to display the credit card price alongside the cash price for items and services, ensuring customers are aware of discounts for cash payments. However, practices like adding a separate surcharge line on receipts or indicating a percentage increase for credit card payments at the register are prohibited. The regulation insists on presenting the highest possible price a consumer might pay with a credit card.

Violations of these guidelines could result in a $500 penalty per incident. Despite the costs associated with accepting credit cards, many businesses recognize them as a necessary component of modern commerce. For example, Three Heads Brewing, which sees significant credit card use, views absorbing surcharge costs as part of their commitment to customer convenience, attributing a portion of these expenses to covering credit card rewards programs.



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