Credit Card Surcharges Against the Law in New York State…Sort Of
Did you know it's against the law to add a a surcharge on credit cards in New York state? Well, sort of.
Credit card surcharges are prohibited in New York under the Section 518 of the General Business Law.
No seller in any sales transaction may impose a surcharge on a holder who elects to use a credit card in lieu of payment by cash, check, or similar means.
Any seller who violates the provisions of this section shall be guilty of a misdemeanor punishable by a fine not to exceed five hundred dollars or a term of imprisonment up to one year, or both.
A few months ago, the New York Court of Appeals clarified the law. saying, if a business posts its prices and charges less for anyone paying cash, it MUST also post the price charged to credit card customers. Businesses can't use a "single sticker price" where it's one price for cash and a percentage increase for credit cards, according to Consumer Finance Monitor.