Raising the Bar in the Payments Industry
New York State General Business Law § 518
Credit card surcharge rules for New York businesses
If you add a fee when a customer pays with a credit card, New York has specific rules about how you post it. They changed on February 11, 2024, and a lot of businesses are still running the old way without knowing it.
What the law requires
You have to clearly and conspicuously post the total price including the surcharge, the actual dollar amount a credit card customer will pay. The surcharge itself can't exceed what the credit card company charges you to process that transaction.
1
Send one statement
The full amount, including the surcharge, displayed before the customer commits to the purchase.
2
Never exceed your cost of acceptance
The surcharge can't be more than what the card company charges you for that transaction.
3
Make it visible at the point of decision
Not buried in fine print, and not revealed only at the terminal after the customer has committed.
No longer permitted
What will get you fined
x
A sign at the register or on the wall stating that a percentage is added to all credit card sales
x
Line items labeled convenience fee, service fee or administrative fee
x
Line items labeled non-cash adjustment or technology fee
x
Any surcharge above your actual cost of acceptance
$500
per violation
Civil penalty under NYS GBL § 518. A business surcharging incorrectly isn't making one mistake. It's making the same mistake on every transaction.
Why we're the ones bringing this up
Nobody else in merchant services wants to talk about compliance. It isn't a sale.
But we'd rather have a client for ten years than close one this month and watch them get fined. So we check it as a matter of course, for our clients and for anyone who asks.
Free NYS GBL 518 compliance audit
We review three things: how your pricing is posted at the point of sale, how your POS or terminal displays it, and how your receipts read. Then you get a plain-English list of what's compliant and what needs to change.
Free. No obligation. You don't have to switch processors, and we're not going to make that the price of the answer.
Common questions
Can I still surcharge credit cards in New York?
Yes. Surcharging is legal in New York. What changed is how you have to display the price. You must post the total credit card price including the surcharge, and the surcharge cannot exceed what the card company charges you.
What is the penalty for getting it wrong?
New York State assesses civil penalties of up to $500 per violation. Because the violation is tied to how transactions are presented, a business posting prices incorrectly is exposed on an ongoing basis rather than once.
Is a sign at the register enough?
No. Since February 11, 2024, a sign stating that a percentage is added to credit card sales does not satisfy the requirement. The total credit card price has to be posted for the items themselves.
Does cash discounting have the same rules?
Cash discounting is structured differently and is treated differently under the law. If you're running a cash discount program, it's worth having someone confirm your posting and receipts are set up correctly. That's part of what our free audit covers.
Do I have to switch processors to get the audit?
No. The audit is free and carries no obligation. If your setup is already compliant, we'll tell you that and you've lost nothing but a short conversation.
This page is general information about New York State law, not legal advice. For guidance on your specific situation, consult a licensed attorney.