On Sunday, February 11th, New York State ushered in a new era of consumer transparency with the implementation of a groundbreaking credit card surcharge law. Championed by Governor Kathy Hochul and supported by key state legislators, this legislation mandates that all businesses in New York State must now disclose any additional credit card surcharges prior to the transaction. This move aims to shield consumers from the sticker shock of unexpected fees, ensuring a transparent and informed shopping experience.
Under the new law, businesses have the option to either display the total cost of an item, including the surcharge or list separate prices for payments made with a card versus cash. This initiative addresses the growing discontent among New Yorkers over hidden fees that inflate the cost of goods and services when paying with credit cards. State Senator Jeremy Cooney, a prominent advocate for the bill, emphasized its intent to protect consumers from surprise charges at checkout, highlighting the importance of full cost disclosure. He said, “As more New Yorkers use credit cards and EBT [electronic benefit transfer] products to purchase goods and services, pricing transparency is critical for consumers to make informed decisions at the register.”
The legislation also introduces a cap on credit card surcharges, prohibiting businesses from charging customers more than what they are charged by credit card processing companies. This ensures that the additional costs passed onto consumers are fair and justified. Moreover, the law specifies that businesses must clearly articulate the exact surcharge amount, moving away from vague notifications of additional fees.
Governor Hochul has praised the law as a critical step towards fostering trust between businesses and communities. By mandating the clear communication of credit card surcharges, the law empowers patrons to budget accordingly, enhancing the overall transparency of financial transactions across New York. She said, “As more New Yorkers use credit cards and EBT [electronic benefit transfer] products to purchase goods and services, pricing transparency is critical for consumers to make informed decisions at the register.”
Hochul continued, “Transparency is crucial in building trust between businesses and communities and now patrons will be empowered to budget accordingly.”
However, it’s important to note that the law does not apply to debit card transactions, highlighting its specific focus on credit card payments. As businesses across New York adapt to these new requirements, the law is poised to set a precedent for consumer protection legislation in other jurisdictions, reflecting New York’s commitment to fairness and transparency in the marketplace.
This legislative change marks a significant milestone in New York’s ongoing efforts to balance consumer rights with the operational realities of businesses, ensuring that the state remains a leader in consumer protection and business ethics.
