Credit card surcharge laws in New York (2026)
Allowed with state conditions
You may surcharge credit cards in New York only if you post the full credit-card price (or show the credit price next to the cash price) before the sale and the surcharge is no more than what the card company charges you; a sign saying 'plus X% for credit' is illegal.
The details
| Cap | Surcharge may not exceed the amount the credit card company charges the business for that credit card use (actual cost; no fixed percentage in the statute). |
|---|---|
| Disclosure | Must clearly and conspicuously post the total credit-card price inclusive of surcharge; final price cannot exceed posted price; two-tier pricing (credit price inclusive of surcharge posted alongside cash price) expressly permitted. NY Dept of State guidance: legal = show both cash and credit prices, or list the higher credit price and advertise a cash discount, or one price for all; illegal = '+X% fee if paying by credit' tags, 'prices include a cash discount not applicable to credit' signs, separate receipt-only line items (convenience/service/processing/non-cash adjustment fee), or a wall/register sign that a fee applies to all credit sales. Civil penalty up to $500 per violation. |
| Debit and prepaid | Statute applies only to a customer who 'elects to use a credit card'; GBL 511 defines credit card and debit card separately ('debit card ... does not include a credit card'). Debit and prepaid are not covered by GBL 518. |
| Statute | N.Y. Gen. Bus. Law § 518 (as amended by L.2023, ch. 723) |
| Court decision | Expressions Hair Design v. Schneiderman, 581 U.S. 37 (2017) (§518 regulates speech; vacated and remanded); Expressions Hair Design v. Schneiderman, 32 N.Y.3d 382 (2018) (merchant complies with GBL 518 'if and only if the merchant posts the total dollars-and-cents price charged to credit card users') |
| Last change | 2024-02-11 (L.2023, ch. 723, signed 2023-12-13) |
| Source check | Verified on the official site |
| Checked | Oct 6, 2026 |
How this entry was checked
Statute text read on nysenate.gov (revision 2024-02-16). Bill S1048-A page confirms 'signed chap.723' Dec 13, 2023 and 60-day effective date. DOS Division of Consumer Protection one-page guidance (PDF dated 1/24) and violations poster downloaded from dos.ny.gov. SCOTUS opinion read on supremecourt.gov. Enforcement is by local consumer-affairs offices and municipal attorneys. Network 3% cap is a Visa rule, not NY law. The New York Court of Appeals decision (2018) is at nycourts.gov.
What this means for each program in New York
| Surcharging | Allowed, but only if you meet the state conditions above on top of the card-network rules. Equipment and signage have to be set up for New York specifically. |
|---|---|
| Cash discounting | Permitted, but a sign saying prices include a cash discount is illegal in New York; post both prices or the credit price. See the Disclosure row above. |
| Dual pricing | Treated like a cash discount in practice (our reading; the statute does not use the term): the card price shown first with the cash price beside it, every card pays the card price, cash pays the cash price. |
Card-network rules apply everywhere a surcharge is allowed
- Credit cards only. Never debit or prepaid, even when the customer presses "credit."
- Capped at 3% and never more than your own cost of accepting credit cards.
- Disclosed at the entrance and at the register, and printed as its own line on the receipt.
- Your processor (acquirer) gets written notice at least 30 days before you start.
Source: Visa Core Rules and Visa Product and Service Rules, April 2026 edition, sections 5.5.1.5 to 5.5.1.9. Mastercard's rules are comparable; its current rulebook text was not verified for this guide.
Sources
- N.Y. Gen. Bus. Law § 518 (as amended by L.2023, ch. 723)
- Expressions Hair Design v. Schneiderman, 581 U.S. 37 (2017) (§518 regulates speech; vacated and remanded); Expressions Hair Design v. Schneiderman, 32 N.Y.3d 382 (2018) (merchant complies with GBL 518 'if and only if the merchant posts the total dollars-and-cents price charged to credit card users')
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Get my fit checkThis guide is general information, not legal advice. Each entry was checked against the official statute, regulation, or court decision linked on the page, as of the date shown, by Cardeva, LLC. Laws change, legislatures are in session, and court rulings can alter the practical status of a statute that remains on the books. Before starting any surcharge, cash-discount, or dual-pricing program, confirm the rules for your state and your payment types with your processor and your own attorney. Any program Cardeva sets up starts only after your processor approves it in writing; rely on that approval and your own attorney, not this page. Nothing here is a guarantee of any outcome. See our Terms of Use. Think something has changed? Use the contact form or call (612) 250-6132.