GENERAL BUSINESS LAW §518: CREDIT CARD SURCHARGE NOTICE REQUIREMENT

The Erie County Division of Consumer Protection wants consumers and businesses to be aware of General Business Law §518 changes regarding the use of credit cards and surcharges. 

Starting February 11, 2024, NYS General Business Law §518 provides new guidance for New York State businesses when charging an additional fee to customers paying with a credit card. 

A business that imposes a surcharge on a customer who elects to use a credit card must clearly and conspicuously post the highest total price for the transaction inclusive of the surcharge (excluding sale tax). The surcharge may not exceed the amount of the surcharge charged to the business by the credit card company for such credit card used. The final sales price of any such sale transaction, inclusive of the surcharge, shall not amount to a price greater than the posted price for such sales transaction. See General Business Law §518 for more information. 

Businesses CAN:

• Merchants must clearly display BOTH credit card and by cash price;
• List the HIGHER credit card price and advertise a DISCOUNT for cash purchases;
• Use the SAME PRICE for both cash and credit purchases.

Businesses CANNOT:

• Put a sign on the wall or at the register that notifies you that a fee is applied to all credit card sales. 
• Charge a separate line items:
  • convenience fee
  • service fee
  • administrative fee
  • non-cash adjustment
  • technology fee
  • processing fee
  • any other fee to credit card users on the customer receipt
• Advertise that all prices include a CASH DISCOUNT that does not apply to credit card purchases.
• Includes a credit card surcharge warning on the item price tag. 

Businesses violating the law can be fined up to $500 per violation.

Governor Kathy Hochul signed this law in December and will go into effect Sunday, February 11, "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," Hochul said Tuesday. "Transparency is crucial in building trust between businesses and communities and now patrons will be empowered to budget accordingly."

If consumers or businesses have questions about credit cards or other surcharges, contact the Consumer Protection Division at (716) 858-1987, consumerprotection@erie.gov. If you believe a business has mischarged you, please file a complaint with our office, here. 

For more information, New York State Department of Consumer Protection provides the following table for additional reference: https://dos.ny.gov/business-resources.