Is a cash discount legal in New York?
Short answer: New York lets a business charge more for credit cards only if the total card price is posted before the purchase, and no more than its processing cost; fees added at the register are illegal. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash. New York law expressly allows “two-tier pricing”: posting a cash price and a card price.
New York at a glance.
Surcharges limited
- Surcharges
- Since 11 Feb 2024 a seller that surcharges must clearly and conspicuously post the total credit card price (excluding tax); the final charge may not exceed the posted price. The Department of State says a wall or register sign, a '+4% fee' tag, or receipt lines such as 'non-cash adjustment' or 'processing fee' without a posted total are illegal. Civil penalty up to $500 per violation.
- Cap
- Not more than the amount the credit card company charges the business.
- Debit cards
- Statute covers credit cards only. Network rules bar debit surcharges.
- Cash discount with both prices
- Expressly allowed: 'two-tier pricing' (tagging or posting two prices). DOS: show both the credit card and cash price, or list the higher card price and advertise a cash discount. Illegal: advertising that prices include a cash discount that does not apply to card sales.
- Law
- N.Y. Gen. Bus. Law 518
Verified on primary sources (GBL 518 text via NY Senate; NY Department of State guide).
What to post on your tags.
- Show the cash price and the card price on every tag, menu or price list, the same size.
- Charge the posted price for how the customer pays. Don’t add a fee, “service charge” or “non-cash adjustment” at the register.
- Put a sign at the door and the counter explaining the two prices.
- Debit pays the posted card price. Never add a fee to debit.
The full New York guide (GBL §518)
Paymantis sets up cash discount processing for independent shops in New York: free sign-up, free monthly service and a free terminal, with tags and signs worded for your state. Get started free.
Questions owners ask.
Can a business in New York charge a fee for using a credit card?
Only within limits. Not more than the amount the credit card company charges the business. Since 11 Feb 2024 a seller that surcharges must clearly and conspicuously post the total credit card price (excluding tax); the final charge may not exceed the posted price. The Department of State says a wall or register sign, a '+4% fee' tag, or receipt lines such as 'non-cash adjustment' or 'processing fee' without a posted total are illegal. Civil penalty up to $500 per violation.
Can I charge more for debit cards in New York?
Not as a fee. Statute covers credit cards only. Network rules bar debit surcharges. With a cash discount, debit pays the posted card price.
Is a cash discount legal in New York?
Expressly allowed: 'two-tier pricing' (tagging or posting two prices). DOS: show both the credit card and cash price, or list the higher card price and advertise a cash discount. Illegal: advertising that prices include a cash discount that does not apply to card sales. Post both prices before the customer pays and add nothing at the register.
Sources
General information, not legal advice. Rules change and differ by state and city; check the rules where your business is. See our terms and disclaimers.