1400 Second Avenue, Watervliet, NY 12189 518.270.9243

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Credit Card Surcharges

Credit Card Surcharges

In October 2018, the New York State Court of Appeals rules that New York State Merchant Businesses can legally pass on their credit card processing fees to their credit card customer and still comply with the New York's General Business Law Section 518, as ong as they disclose the dollar and cents price charged to the credit card customer. They must comply with each of the credit card companies requirements and consumer diclosure guidelines. 

The credit card surcharge cannot exceed the Merchant Businesses discount rate up to a maximum of 4%. A credit card sucharge can never be charged on a pre-paid card or debit card.

There are two ways that a Merchant Business can legally pass on the processing fees to the credit card customer is through a "credit card surcharge" and a "cash discount".

A "credit card surcharge" is an "additional fee" that a Merchant Business adds to the cunsumer bills when a credit card is used for payment. The process for implementing a credit card surcharge include three steps, These steps and more informtion can be found here. New York State dictates posting two prices on each item or service: the credit card price with the surcharge and the cas/debit card price without the surcharge. 

A "cash discount" occurs when a Merchant Business "post credit card prices" and offers a "discount" on those prices for customers who pay with cash. The difference with a credit card surcharge is that the "surcharge" occurs when a merchant "post cash prices" and charges an additional fee on top of that price for customers who pay with a card.

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1400 Second Avenue
Watervliet, NY 12189
P 518.270.9243
F 518.270.9245