Consumers will see new pricing labels under a state law that aims to make credit card surcharges more clearly displayed.
The measure, which was signed by Gov. Kathy Hochul in December and took effect Sunday, limits fees to the actual amount charged to the business by the credit card company, according to a press release. The new law also requires businesses to display certain information before checkout that will provide greater transparency and protections to customers.
“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,” Hochul said in a statement. “Transparency is crucial in building trust between businesses and communities, and now patrons will be empowered to budget accordingly.”
Businesses have the option of either clearly displaying both the credit card price and the cash price, listing the higher credit card price while advertising a cash discount or charging customers the same amount for cash and credit purchases.
Business are no longer allowed to put up signs saying there will be a fee for all credit card sales, charge seperate line items like a convenience fee, service fee or administration fee to credit card users, advertise that all prices include a cash discount that will not apply to credit card purchases or add a credit card surcharge warning to the price tag of an item.
The law does not apply to debit card users.