Is a cash discount legal in New York?
Short answer: Yes, when the card price is posted. Since 11 February 2024, New York’s General Business Law §518 lets a business charge more for credit cards only if the total card price is shown before the customer pays, and the extra can’t be more than the business’s card processing cost. A tag with both prices is legal; a fee added at the register or only on the receipt is not.
What New York allows.
The Department of State’s guidance shows three legal ways to price:
- Show both prices, the card price and the cash price. This is how we set up your tags.
- List the higher card price and advertise a discount for cash.
- Use the same price for cash and card.
New York limits the extra card amount to what card processing actually costs the business. We go over your rate with you before you sign, so the card price on your tags fits it.
What New York doesn’t allow.
- A sign on the wall or at the register saying a fee is added to card sales.
- A separate fee line on the receipt (convenience, service, administration, non-cash adjustment, technology or processing fee) without the total card price posted before the purchase.
- Advertising that “all prices include a cash discount” that card buyers don’t get.
- A “+4% fee if paying with credit card” warning on the price tag.
Debit cards can’t be surcharged under card network rules anywhere. With both prices posted, debit simply pays the card price on the tag.
How we set it up for New York shops.
Your terminal arrives set up to charge the posted card price, with no fee line on the receipt. We help you put both prices on your labels, menu or register, and send signs for the door and the counter worded for New York. Sign-up, monthly service and the terminal are free.
Questions owners ask.
Can a New York store charge more for credit cards?
Yes, if the higher credit card price is posted before the customer pays, and the difference can’t exceed what the card company charges the business. New York’s law since 11 February 2024 requires the total card price to be shown, not a percentage or a fee added at the register.
Is a “non-cash adjustment” legal in New York?
Not as a separate line on the receipt without the card price posted first. New York’s Department of State lists convenience, service, processing and non-cash adjustment fees added only on the receipt as illegal.
Does this apply in New York City?
Yes, the state law covers businesses across New York State, including the five boroughs. Check with the city if your business type has its own rules.
Can I put “4% fee for credit cards” on my price tags?
No. New York’s guidance lists a surcharge warning on the price tag as illegal. Post the card price itself, like our tags do.
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.