A new law goes into effect this weekend requiring businesses to disclose additional credit card surcharges. NBC New York’s Lynda Baquero reports.
A new law took effect in New York this past weekend, requiring businesses to inform customers about credit card surcharges that will cost them more money at the register.
Starting Sunday, businesses must post the total cost of goods or services with a credit card, including surcharges, before customers checkout. Proprietors can either display the total price inclusive of the credit card surcharge, or list a separate prices for paying with a credit card versus cash.
The new law also requires the surcharge passed on to customers using credit cards to the exact amount charged by credit card companies.
“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,” Gov. Kathy Hochul, who signed the bill into law back in December, said in a statement last week.
“Transparency is crucial in building trust between businesses and communities and now patrons will be empowered to budget accordingly.”
On the state department's website, a video describes which signs businesses are allowed to display, and which will soon be illegal. For example, proprietors can no longer show just the percentage that will be added for using credit cards and asking customers to do the math. Instead, the sign must show the all-in price.
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The new rule does not apply to debit cards.
