November 10, 2015

Question:

Jennifer,

May I charge a 3% convenience fee for patients paying with credit cards?

Thank you in advance!
Dr. C

Answer:

In NY, a vendor is not authorized to charge a surcharge for credit card payments.  NY Gen Business Law explicitly prohibits same – 
 
NY General Business Law (GBS) Section 518 prohibits surcharges for customers (patients) who elect to pay via credit card in lieu of payment by cash or debit card.  The potential penalty for violating the prohibition on surcharges is a fine of up to $500 and/or imprisonment for up to one year. 

 The Law was very recently upheld-

 http://www.courthousenews.com/2015/09/30/2nd-circuit-upholds-n-y-ban-on-retail-surcharges.htm.

 

You ARE authorized to give patients paying cash a discount. The important thing is the stated price is the stated price, regardless of whether you extend a discount. The State's concern is misrepresentation to consumers.  Now, if you accept insurance and make a rule of discounting, you also could potentially have a concern over misrepresentation of anticipated collections / misrepresentation of charges alleged by an insurance company.   You may just want to stick to charging one price!    
 
Hope this helps!

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