The New York Credit Card Surcharge Law, signed last December, is in effect as of February 11th, 2024. The new law permits businesses, including auto dealers, to apply credit card surcharges to customers. Although there is no specific guideline on how to inform customers about this new surcharge, New York’s Division of Consumer Protection has outlined some basic practices to follow.

It is crucial for dealers to minimize their legal risks by providing proper notice to consumers:

• Display a visible sign stating that credit card transactions will incur a surcharge, using the term “surcharge” instead of other terms like processing fee or adjustment.
• Clearly show the price for cash payments alongside the price for credit card payments to illustrate the difference.
• Ensure that the surcharge amount does not exceed the credit card processing fee. Dealers can face penalties of up to $500 per violation.

If you have any questions regarding this topic, contact us at marketing@rosenfieldandco.com or give us a call at 888-556-1154.