Passing Credit Card Surcharge on to Patient

Question:

Hi Jennifer,

Can I charge a patient for paying for products by credit card so I am not stuck with the processing fee?

Thank you in advance. 

Dr. V


Answer: 
 
New York State has implemented strict laws regulating the application of these surcharges onto a customer. (https://www.governor.ny.gov/news/governor-hochul-announces-new-law-clarify-disclosure-credit-card-surcharges-goes-effect-sunday) First, the seller must clearly and conspicuously post the total price of the credit card transaction (inclusive of the surcharge) before checkout. Second, the surcharge amount cannot exceed the merchant’s cost of acceptance (Federal law caps this amount at 4%). Finally, the final price of a transaction that includes a surcharge cannot be greater than the advertised price. This law applies to all sellers of goods and services, which would include a medical practice. (https://dos.ny.gov/business-resources)

New York State’s Division of Consumer Protection also provides guidance to merchants on how their business can and cannot advertise the surcharge. (https://dos.ny.gov/business-resources) For example, a business cannot (i) put a sign on the wall, at the cash register, in the reception/payment area indicating that “a fee will be applied to all credit card sales”, (ii) charge separate line items to credit card users on a customer receipt only (without clearly posting the total price prior to purchase), or (iii) include a “credit card surcharge warning” on the item price tag. On the other hand, a business is permitted to display both the credit card and the cash price or even list the higher credit card price and advertise a discount for cash purchases.