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Retailers must disclose credit card fees under new NY regulation

By Jake Beardslee · February 13, 2024

In brief…

  • New York passed a law requiring businesses to clearly display credit card prices
  • Stores must now list specific credit card price next to cash price or use one uniform price
  • The law aims to increase transparency and prevent surprise credit card surcharges
  • It only applies to credit cards and caps fees to what businesses pay processors
A new New York law mandates retailers clearly post credit card prices to increase transparency for consumers.  Pixabay/Pexels

Businesses in New York are now required to clearly display the final price customers will pay if they use a credit card under a new state law. The law, which took effect on January 1, 2023, aims to increase transparency around credit card surcharges for consumers.

Previously, stores could post general signs stating that credit card purchases may be subject to surcharges. However, the new law mandates that retailers must list the specific credit card price directly next to the cash price of each item, according to The Associated Press. Alternatively, businesses can set one uniform price that already factors in potential credit card processing fees.

“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,” said Governor Kathy Hochul in a statement supporting the measure. The Democrat signed the bill into law last year.

The legislation only applies to credit cards and not debit cards. It will also cap any credit card surcharges to the actual costs businesses must pay to credit card companies to process the transactions.

In a statement, the Partnership for New York City—a nonprofit representing businesses—expressed support for the disclosure requirements. The group stated this type of transparency “will increase consumer trust in business, which will have long term benefits for all concerned.” Critics argue the law may lead some small shops to increase prices for all customers.