New Law Requires Sellers to Disclose Credit Card Surcharges

Westchester County Executive George Latimer, New York State Assemblywoman Amy Paulin and County Director of Consumer Protection Jim Maisano worked together to ensure that residents are well-informed about a new law aimed at promoting transparency in credit card transactions. Effective February 11, 2024, this new state law mandates that merchants in New York State must provide clear and conspicuous disclosure of credit card surcharges to consumers.

On February 16, lawmakers held a press conference to announce the passage of new legislation. Latimer said “Transparent pricing is essential for consumers to make informed decisions. This new law will empower Westchester residents by ensuring they have clear visibility into any credit card surcharges they may incur and I thank my colleague in government Assemblywoman Paulin for her efforts on its passage and Governor Hochul for signing it into law.”

Paulin added: “This new law protects New Yorkers from hidden surcharges by requiring sellers to clearly post the price of a credit card surcharge. Credit card surcharges now have to be disclosed clearly so that customers are fully aware of them upfront and not just when they go to pay. The new law also prevents businesses from charging a higher fee than what they are charged by the credit card companies. This legislation is ultimately about transparency, fairness and preventing consumers from being misled when making purchases using credits cards. I thank Jim Maisano, Director of the Westchester County Department of Consumer Protection, for bringing this important issue to my attention. His idea is now a law which will protect New Yorker consumers.”

The new law limits credit card surcharges to the amount charged to the business by the credit card company and requires businesses to clearly display the total price inclusive of any surcharges before checkout. It aims to prevent consumers from being surprised by hidden fees and ensures that they have a clear understanding of the costs associated with credit card transactions.

Maisano said: “This law reinforces the principles of fairness and transparency in commercial transactions. We are committed to ensuring that consumers are protected from deceptive practices, and this legislation is a significant step forward in achieving that goal.”