New Law in New York Requires Companies to Inform Customers About Credit Card Surcharges
A new law in New York has gone into effect, requiring companies to inform customers about credit card surcharges that will cost them more money.
Since Sunday, businesses must report the full cost of goods or services with a credit card, including surcharges, before customers make the respective payment. Cashiers or owners must show the customer the total price, including credit card surcharge, or list prices separately to pay with credit card or cash.
In addition, this new legislation requires the surcharge applied to customers who use credit cards be the same as what credit card companies charge. Governor Kathy Hochul, who signed the bill into law that same month, said in December, “New Yorkers should never have to deal with hidden credit card costs, and this law will ensure that people can be confident that their purchases will not result in surprise surcharges.”
“Transparency is crucial to building trust between companies and communities, and now sponsors will have the ability to budget accordingly.”
On the state department website, a video describes which signs businesses can display and which will soon be illegal, as reported by NBC New York. For example, owners can no longer just show the percentage that will be added for using credit cards and ask customers to do the math; instead, the sign must show the total price.
This new normal does not apply to debit cards.