A new law going into effect on Sunday will require businesses in New York to clearly post the cost of purchasing items with a credit card, including any surcharges being imposed, for customers before checkout.
The law, signed by Gov. Kathy Hochul in December, also prevents businesses from imposing more in credit card surcharges than what they are charged by processing companies.
Businesses can choose either to solely display the higher credit card price for the products or services they sell or to list both the credit card price and the lower cash price for the items.
The new disclosure requirements will “ensure individuals can trust that their purchases will not result in surprise surcharges,” Ms. Hochul said in a statement this week.
“Transparency is crucial in building trust between businesses and communities, and now patrons will be empowered to budget accordingly,” he said.
In New Jersey, Gov. Philip D. Murphy signed a similar law last year requiring merchants to notify consumers card-surcharges-faq.pdf” title=””before checkout about the amount of any credit card surcharges to be applied. It also prohibited merchants from charging consumers more than the processing fee the businesses paid.
A national law prohibiting merchants from charging consumers extra for credit card purchases expired four decades ago. Since then, many businesses have come to rely on so-called convenience fees as a way to offset what they are charged by credit card processing companies.
Jeremy Cooney, a state senator, said in a statement that the law requires the disclosure “helps consumers better understand the total cost” of the products they buy.
However, businesses were already required — by the state and by companies like Visa and Mastercard — to display credit card surcharge amounts at the entrances of their stores and at the point of sale, said