A new state law in New York has changed the rules for businesses in how they display prices for credit card purchases to customers. The law, which took effect on Sunday, requires businesses to display the total prices for items or services, including any credit card surcharges, before consumers check out. This mandate comes from Gov. Kathy Hochul’s office.
Businesses are now also allowed to display a two-tiered pricing option if they offer a cash discount. In those cases, the businesses can display the credit card price alongside the price for using cash. If businesses do offer a cash discount, they’re not required to display the lower price. They could just display the higher, credit card price and inform customers through signage that they’ll get a discount for using cash, the state said.
Regardless of the pricing structure, if there’s a higher price for using a credit card, it has to be shown explicitly to customers before they check out. Companies can’t just display signs or notices stating they charge a certain additional percentage for using credit cards. They also can’t just post a blanket statement informing customers they charge a fee for cards. The new law mandates that businesses display the actual credit card prices for each item they sell or service they provide. Businesses could also just use a single price for cash and cards and display that.
The law aims to ensure that customers always see the highest possible price they’ll end up paying, not a lower one that could increase later through a fee for using a card. Additionally, the law limits credit card surcharges to the amount charged to the business by credit card companies, according to Hochul’s office. It’s important to note that the new law does not apply to debit cards, according to the state.
Gov. Hochul expressed that the law is designed to prevent hidden credit card costs, providing transparency and building trust between businesses and communities. Youssef Mubarez, the director of public relations for the Yemeni American Merchants Association, expressed concerns about the law, stating that it creates more work for small business owners who are already stressed. He emphasized that the law makes merchants look like the enemies when they are simply trying to save money to keep their businesses alive.
