New York Now Requires Credit Card Surcharges To Be Displayed Before Purchase, Limits Surcharge Amount

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Effective this week, New York now requires that credit card surcharges be displayed upfront.

In a growing number of stores and restaurants, a percentage is added if you pay by credit card. Sometimes that’s disclosed, other times it’s a surprise at checkout. Both practices are now banned in New York.

In the new law:

  • Surcharges can’t exceed the actual processing fee charged to the business.
  • The total item price, including any credit card surcharge, must be displayed upfront. The cash price can still be displayed, but the credit card price must also be displayed as a price and not just a percentage surcharge.
  • No line item surcharges for using a credit card can be added.

If a business doesn’t follow the law as of this week, you can file a claim for a refund of added fees.

This comes after New York added a requirement that points be valid for 90 days after a credit card is closed or shut down.

Personally, I can’t stand when stores and restaurants sneak in a credit card surcharge and will often avoid going to places that do that. Raise the price if you need to, but don’t add nickel and dime fees. I’m not convinced that should be legislated, I’d hope the market would prove that and others would do the same as me. But in this case, perhaps NY is actually doing a favor for those stores?

What do you think of this new law? Will other states copy it?

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85 Comments On "New York Now Requires Credit Card Surcharges To Be Displayed Before Purchase, Limits Surcharge Amount"

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does this apply to gas stations too?

David R

The gas stations I see in NY have been very upfront about their credit card price all along.


“Surcharges can’t exceed the actual processing fee charged to the business.”

I meant in terms of this. No way does the cc charge them 10 cents/gallon


Why not? At 3 percent of $3.30 is already 10 cents


You’re right. The gas station is being charged way more than 10c per gallon.

My Rav pointed this out years ago

Which is a very serious shaila of ribbis, if the station is owned by a Jew.


What’s the shaila of Ribbis?
The reason they charge the fee has nothing to do with the fact that they are getting the money a day later.


thats what goes into them charging more

R. Moshe

no, they charge a bit more rather than absorbing the credit card bank fee.


Yes, but gas stations have always been compliant since they disclose both the credit card price and the cash price side-by-side.

R. Moshe

I am aware of the costs and I can assure you there are times the surcharges exceed the average cost. The industry is now dominated by an Indian Sikh group that does what they want.


I agree just raise the price. I hate surprises.


I hate the fees also! I ignore all locations which I know charges the additional fees..


Everyone COLLECTS bank fees. No store charges them. There should be two prices, cash and credit. Don’t raise the prices for everyone.
If you choose to use a credit card, great, then YOU can pay the bank fees.

reb yid

No, they charge bank fees. They don’t collect them on behalf of the bank. And if you need to use the bathroom while dining in a restaurant, or extra napkins, or you monopolize more of the waiter’s time, or you need takeout containers for your doggie bag, you should pay those extra expenses?


Nope. They collect processing fees the same way they collect sales tax. Processing fees are just a tax that goes to the cc companies instead of the State. Other than that no different

R. Moshe

Any merchant realizes that sometimes people spend easier when not shelling out at that moment. I can also tell you that processing, counting cash and depositing safely has costs.


Of course that’s why most merchants don’t differentiate. That doesn’t mean there shouldn’t be legislation forcing them to. There are options besides cash that don’t carry fees like zelle or debit cards which charge far less.

Fake Rabbi

This is why large stores prefer credit cards over cash. Theft of and safety of cash is an issue. Processing fees can be as little as 1.3% Percent to 4% plus a flat fee per transaction. depending on the card and the processor.

Some stores may prefer cash so they have cash readily available. Most banks do charge business to exchange cash or checks and make deposits.


Glad about it. Just got charged $35 for using my cc locally. Was disappointing to say the least. Hope other states follow as well.

David R

$ or ¢?


It’s not very clear what the actual charge is for using a credit card. How a vendor is proving the processing fee and what’s considered a reasonable billed credit card fee.


In a very general way, I have such a strong preference for transparency in all business-related matters, to the extent that I will avoid patronizing business that operates otherwise. I don’t even care if it is standard practice. For example, in Israel it is common to advertise computers without the cost of Windows reflected in the price. Everyone does it. It still bothers me, because almost no one will not need to add the cost of Windows to the computer…
I don’t shop in stores where the price of an appliance is not displayed, even if I stand to spend less. (Maybe that’s the control freak in me.)
So I am happy to applaud one more place where transparency will be enforced.


If businesses find it difficult to comply, they will rename the fee and charge it to non credit card users just the same.

The consumer will never benefit for very long.

R. Moshe

Then their prices will seem higher and they will lose customers.


As a small buisness owner I am very much in the either raise the price or don’t charge it camp, I will say that for many its not about the transaction fee but about getting cash that will either pay “undocumented workers” or just go unreported


What about debit card payments?


Personally I pay the same rate as a credit card. Buy for most its much cheaper provided they run it as a debit card which most dont


Credit card fees end up costing retailers thousands of dollars monthly which affects their bottom line. I don’t know if you ever saw a statement but it is long and complicated. Raising the price for everyone, to cover fees incurred by others for their convenience (and to travel the world for free) idle not the right answer. Adding a nominal fee just to cover their monthly costs is fair. Gas stations have been doing this forever and nobody has had any issues with that. It is just another way for ny to destroy the economy by putting more and more pressure and fines on retailers that are the bread and butter of this state.


“Raise the price if you need to, but don’t add nickel and dime fees.” I actually disagree. I think cash and debit payments should be charged one price and credit card payments should be charged a higher price with the swipe fee included. I love my cc points but it bothers me that those are being financed by people swiping cards that don’t earn rewards paying a higher price due to high swipe fees (abt 2% in the US as opposed to 0.3% in Europe). Customers should have the option of using a different payment method for a lower price while those of us who want to pay with a cc can choose to pay the slightly higher price.
I also think that FINAL prices should be clearly displayed. Remember when airlines were allowed to advertise prices before taxes and fees? In the UK the price you see on an item includes tax and the US should do the same with a cash/debit price and a credit price, both including tax to show the final cost.
Stores charging cc processing fees separately is a good idea but they should be transparent and the NY law requiring that is a good idea.


What about the required minimum spend to use a credit card? I avoid those places.

Once we are at it, for the restaurants that force an 18% gratuity, why not just include it in the price of the food and write on the bottom, no need to tip, your waiter is getting compensated?


The retailer pays both per swipe and a percentage. The percentage alone will not cover the fee less than a $10 swipe. Theyvwill lose money on selling a Danish for $1.75 if a credit card is used.

Fake Rabbi

I disagree. It will eat a lot of profit. It may cost them close to $.50 but they markup a Danish more than that. I under stand a vendor doesn’t want to allow a charge under $10. In emergencies they should make an exception for a regular customer.


What about for mishulachim that go around with those hand held cc machines?


Even if they don’t get the full amount you donated, they still come out ahead.

Fake Rabbi

They should pass on the surcharge.


The 3+% fees charged at restaurants are really annoying! We have avoided some because of that. At others, we just pay cash. ATM withdrawals are surcharge-free for my bank ATM cards. I also notice that we order less at restaurants when using cash – an interesting byproduct. As for gift cards, Visa tells me their rules prohibit merchants from charging fees to use gift cards, but I find that merchants try to charge fees anyway or just claim they don’t accept gift cards.


This does nothing in my opinion. If restaurants wants to take credit cards then absorb the fees (like they used to do) now they can raise prices citing inflation and insert a credit card fee in the price.


For once I’m in total agreement with a law passed in liberal NY. I absolutely hate when businesses do this and charge me 3% or 5% or whatever they decide for using a cc instead of cash or a check. I run a business too and accept cc which constitutes most of the payments too. The cost is built into the price and never is there a fee added because I won’t do to my customers that which I abhor.


This was already the law, regarding displaying the total price inclusive of the fee. Now it’s make more explicit.

Few stores followed the law before and I expect that to continue


How about paying for taxes, or fines. How ironic that the government doesn’t show both check or card prices



R. Moshe

That is really different. You are not making a purchase which implies a profit to a merchant. You are transferring cash to the Government and there is a credit card cost to the Government. Of course, it is fun to get the points.


R. Moshe, punkt farkert. Taxes and fines are 100% profit to the Government, as opposed to the merchant who has costs directly associated with the profit he’s making.

Moshe Gindi

The US has the highest credit card fees in the world, and it needs to be lowered. While you Dan and your readers (including me) are doing great with the points that Chase and other banks offer, my business pays more than THREE PERCENT of all sales to the credit card companies. Imagine how much the banks (and the interchange companies, including MC & VISA) are making! We as consumers are paying this tax, since all costs are passed on to the customer.

(A quick Google search shows me that Visa & MC took in a huge amount of money from only a portion of those three percents: Visa’s net revenues in the fiscal full-year 2023 were $32.7 billion. And Mastercard had revenue of $25.10B in the twelve months ending December 31, 2023. This doesn’t include Amex, Discover, etc. And yes, these numbers also include income from those who pay late fees, etc.)

These interchange charges were initially created in the 70’s before the internet, when a store needed to look up the card number on a weekly booklet of stolen cards they received from the bank. For higher charges the store needed to call up the bank to verify the charge. At that time the 3% fee made sense. But today, it’s all handled in a split second by the computers. (I worked in my Dad’s store in the 70’s – it was a manual hassle.)

The reason why the merchants are revolting is because the banks and interchange companies are charging them so much, and the costs keep going up. (A few years ago, our business received a notice from Amex that they’re increasing our costs by 15%! Visa & MC do the same at least annually.)

Congress needs to step in and stop the banks and the interchange companies from charging the merchants so much. The interchange fees are exorbitant. 3% on every purchase! That’s a huge tax! It’s highway robbery! Because merchants have little to no choice!

Now, focusing on this new NYS law, I like it. But it’s not practical – it needs to be tweaked. Every card has a potentially different fee that will cost the merchant differently for each swipe of a card. The merchant doesn’t know exactly how much it’ll cost him until the card is swiped. For instance, the cards that you and I use from Chase that racks up so many points for us, costs the merchant much more than a standard card. There should be a leeway of plus or minus something. At this point, the merchant will be forced to charge the customer only the minimum charge and then swallow the rest. It’s will not make sense for the merchant to lose goodwill by charging the customer something small, while it doesn’t cover the cost.

Remember, all costs are passed on to the customer.

My two cents.

Fake Rabbi

You have an option of accepting only cash. I think you should shop for a better bank with cheaper credit card processing charges if you have a good credit history as that effects your rate.


I think the cc companies used to mandate that if you want to take the card, you cannot charge any fee. Take it or leave it. Nearly all businesses accepted because the benefit was much higher than the loss. Only a few were cash only and others tried skirting the rules for as long as they could

Fake Rabbi

It used to be the rules. I think there was a court ruling that put a stop to it.


New York stops short of requiring sales tax be included in the displayed price for some reason though.

Fake Rabbi

You may post sales tax included in the price. but retailers want to show a lower price and add it later.


NYS government and NYC charges fees, but they call it a “convenience fee” so i guess “Surcharges can’t exceed the actual processing fee charged to the business.” doesn’t apply to them


What about paying those high Surge charges when paying for Traffic Violations? is it also part of it or government are exempt?

Fake Rabbi

The city doesn’t accept credit cards directly. they send you to a third party processor who charges the fee.


NYC makes you pay a convenience fee for paying parking/camera tickets.

Will that change?

Fake Rabbi

No, Good Luck
The city doesn’t accept credit cards directly. they send you to a third party processor who charges the fee.


Dan I never realized that you were such a hater. As a small business owner (not in ny) of 25 years I was late to start taking cc and early to pass on the accompanying fees. The costs are real and should be paid by purchaser .There are many other ways to pay nowadays especially zelle and other electronic forms of payment which honest businesses do not upcharge in any way. Since we charge our customers very fair prices the customers appreciate our honesty and don’t mind paying the convenience fee which is attached to cc purchases. Those that do usually zelle payment.


I think the bottom line is the mentality of the individual, debtors are more likely to be bothered by real charges being passed on to their purchases while savers are more appreciative of the true nature of the transactions…. In other news cc debt continues to climb to new highs despite rise in defaults.

Fake Rabbi

Do you extend credit to customers? Is there any cost to that? Do you charge a fee for Net 30.

Bobby Orbach

Does this apply when you pay taxes or other gov fees?
Essentially upstate


Grear. Next do sales tax