New Law to Clarify Disclosure of Credit Card Surcharges Goes Into Effect Sunday, February 11, 2024!
Business transactions imposing a credit card surcharge must post the total price of transactions, including the surcharge, prior to the sale.
The law provides greater transparency and protections for consumers by:
Limiting credit card surcharges to the amount charged to the business by the credit card company; and
Requiring businesses to post before checkout…
The total price of an item or service inclusive of the credit card surcharge; or
A two-tiered pricing option which requires the credit card price to be posted alongside the cash price.
The following practices and examples comply with the law's credit card surcharge notice requirements:
DO:
The business lists the higher credit card price next to the lower cash price.
The business lists the credit card price for items and services, then lets customers know they will receive a discount for using cash.
The business changes all prices to the credit card price.
DON’T:
The business posts a sign on the door and at the register stating an additional 3.9 percent surcharge will apply for credit card purchases.
"This business has a 4 percent cash discount incentive built into all pricing. Any purchases made with a credit or debit card will not receive the cash discount and an adjustment in cost will be displayed on your receipt."
A convenience fee, service fee, administration fee, non-cash adjustment, technology fee, processing fee, etc., is charged to credit card users and added as a separate line item on a customer receipt.
The price tag of an item shows "$10.00, +4 percent if paying with a credit card."
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007