Question:
Hi Jennifer,
I have seen numerous local businesses charging customers more for using a credit or debit card as opposed to cash, is this legal, and if so is my practice able to institute this charge?
Thanks,
Dr. S.
Answer:
So, no, not legal. NYS does not allow business to add a surcharge for credit. However, you can advertise the higher pricing, and offer a cash discount. https://dos.ny.gov/news/consumer-alert-nys-division-consumer-protection-alerts-consumers-ny-law-related-credit-and.
Here is from the NYS Office of General Counsel -
Re: Credit Card Surcharge
Question Presented:
May an entity that provides a service to insurance companies that permits policyholders to pay their insurance premiums by credit card charge those policyholders an additional fee to cover credit card and other service expenses?
Conclusion:
No, an entity that provides a service to insurance companies that permits policyholders to pay their insurance premiums by credit card may not charge those policyholders an additional fee to cover credit card and other service expenses.
