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New York’s revised credit card surcharge law to be implemented on February 11


NEW YORK⁣ (WKBW) — Have you ever noticed that sometimes it’s less expensive to pay ​with cash to dodge a credit card surcharge? This ​is something ⁣Jennifer Matyjakowski recently encountered.

“I walked into a store and they informed me that they charge extra for credit card payments and suggested that ⁤they prefer‍ cash payments,” Matyjakowski shared. “So, I ended up paying with cash.”

A fresh ⁣law that will modify New York State’s current credit card surcharge law is set to come into effect on​ February 11.

This law was endorsed by Governor Kathy Hochul on December 13, 2023.

The governor’s office stated that it offers enhanced transparency and safeguards for consumers by:

  • Restricting credit card surcharges to the amount the credit card⁢ company charges ⁣the business; and
  • Mandating businesses to display before checkout:
    • The total cost of a product or service, including the credit ⁢card surcharge; or
    • A dual pricing option, ⁤which ⁤necessitates the credit card price to be displayed next to⁣ the cash price.

“New Yorkers should never have to grapple with concealed credit card costs, and this law will guarantee ‌individuals can trust that their purchases will not lead to unexpected⁢ surcharges. Transparency is vital in fostering trust ​between businesses and communities, and now‌ customers will be equipped to budget appropriately.”

– Gov. Hochul

“This surcharge is not intended to be a ⁣profit hub.⁢ It’s merely supposed to counterbalance the cost of conducting business or processing credit ⁣card transactions. The average is around 2.2%, though it varies slightly. This is ⁣part of a⁣ broader conflict, I would say, between merchants and card companies,” said Ted Rossman, Senior Industry Analyst at Bankrate. “Your main options are to either take your business elsewhere or pay with the‍ most suitable payment method. For instance, I enjoy this pizza place. I now ⁣pay with cash to avoid the processing fee.”

You can find the guidance on the state’s website here.

The following are examples provided by the governor’s office that comply and don’t comply with the law’s credit card surcharge notice requirements:


  • The business displays‍ the higher credit card price alongside a lower cash price.
  • The ⁣business displays the credit card price for items and services, then informs customers ⁣they will receive a discount for using cash.
  • The business adjusts all prices to the credit card price.


  • The business posts a sign on the door and at the register stating an additional 3.9 percent surcharge will apply for credit card purchases.
  • “This business has‍ a 4 percent cash discount incentive built into all pricing. Any purchases made with a credit or debit card will not receive the cash discount ‌and an adjustment in cost will be displayed on your receipt.”
  • A convenience fee, service⁤ fee, administration‌ fee, ⁣non-cash ⁢adjustment, technology fee, processing fee, etc., is charged to⁢ credit card users and added as a separate line item on a customer receipt.
  • The price ⁣tag of an item⁤ shows “$10.00, + 4 percent if paying with a credit card.”

Please note, ‍the law does not apply to debit cards.

Alejandro Mendoza
Alejandro Mendoza
Alejandro Mendoza is a dedicated journalist, known for his in-depth research and commitment to truth. A graduate of Columbia University's School of Journalism, he specializes in revealing and reporting on significant local issues.
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