New York credit card surcharge laws: what businesses need to know (2026)
New York allows businesses to surcharge credit card transactions, but it has strict rules about how the credit card price is displayed. The total credit card price, including the surcharge, must be clearly and conspicuously posted before the customer pays, and the surcharge cannot exceed the amount permitted by New York law and applicable card-network rules. Debit and prepaid cards cannot be surcharged under Visa and Mastercard rules.
New York credit card surcharge rules at a glance
| Question | Rule |
|---|---|
| Are credit card surcharges allowed? | Yes, if New York price-display requirements and applicable card-network rules are followed. |
| Must the total card price be shown? | Yes. The total credit card price must be shown before purchase. |
| Is a “3% credit card fee” sign enough? | Not sufficient. A percentage-only notice does not replace the total credit card price. |
| Can debit or prepaid cards be surcharged? | Not permitted under Visa and Mastercard surcharge rules. |
| What is the maximum surcharge? | The amount it costs your business to accept credit cards, or Visa’s 3% cap, whichever is lower, subject to card network requirements. |
| Can cash and credit prices both be shown? | Yes. New York law does not prohibit two-tier pricing. |
| What is the penalty under GBL § 518? | A penalty of up to $500 per violation, not including customer complaints, disputed transactions, or reputational damage |
Are credit card surcharges legal in New York?
New York General Business Law § 518 permits credit card surcharging so long as the seller follows the law’s price-display and surcharge-limit requirements. The current version of the law took effect February 11, 2024.
A business that imposes a credit card surcharge in New York must meet three requirements:
- Display the total credit card price. The business must clearly and conspicuously post the total price for using a credit card, inclusive of the surcharge.
- Keep the surcharge within the permitted amount. The surcharge may not exceed the amount the business incurs for accepting the card (the cost of acceptance)
- Do not charge more than the posted credit card price. The final sales price, including the surcharge, cannot exceed the posted price.
The law also does not prohibit two-tier pricing, where the credit card price, inclusive of any surcharge, is posted alongside the cash price. Violations can carry a civil penalty of up to $500 per violation, and the law can be enforced by local consumer affairs offices and municipalities as well as the state.
How must businesses display credit card surcharges in New York?
New York’s Department of State says businesses must be transparent by displaying the highest total price, excluding sales tax. In other words, a percentage-only notice is not enough if the customer cannot see the total credit card price before the purchase, whether in person or in an e-commerce flow.
Allowed practices include:
- Posting both prices, such as “$103.00 credit / $100.00 cash.”
- Posting the higher credit card price and advertising a discount for cash.
- Charging the same price for cash and credit.
Insufficient or impermissible practices include:
- A sign at the register that only says a fee or percentage applies to credit card sales.
- A credit card surcharge warning on a price tag without displaying the total credit card price.
- A “convenience,” “service,” “processing,” or similar fee that first appears as a separate line item on the receipt, without the total credit card price being clearly posted before purchase.
- A sign advertising that all prices include a cash discount that does not apply to credit card purchases.
The posted credit card price may exclude sales tax. Businesses should separately confirm with a tax advisor how sales tax applies to any surcharge.
What is the maximum credit card surcharge in New York?
New York law provides that the surcharge may not exceed the amount that is charged to the business for the credit card use. Card-network rules add their own limits on top of state law, and the lowest applicable limit controls.
Visa caps surcharges at the merchant’s cost of acceptance or 3% of the transaction amount, whichever is lower. Mastercard applies a similar cost-based cap with a 4% maximum. Both networks also have rules that tie a merchant’s ability to surcharge their cards to how it treats competing card brands it accepts. In practice, a business that accepts multiple card brands should not surcharge one brand differently from another. Instead, it should apply one consistent surcharge rate across all brands, set no higher than the lowest applicable cap. For most merchants, that means 3% or their actual cost of acceptance, whichever is lower.
Rules for online or e-commerce payments
Section 518 is written broadly to apply to any seller in any sales transaction. For an online checkout, the practical requirement is the same: the customer should be able to see the total credit card price before authorizing payment, not discover the fee for the first time on a receipt or after the transaction is complete.
Card-network rules add their own online disclosure requirements. Visa requires surcharge disclosures at both the point of entry and the point of sale, and Mastercard requires clear disclosure of surcharging practices at the point of interaction. Businesses using dynamic checkout flows should make sure the surcharge amount and resulting total are presented clearly before the customer confirms the purchase, for example on a website, invoice, or price book.
Guidelines for invoices and payment links
Section 518 applies to “any seller in any sales transaction,” including invoiced sales. The Department of State’s guidance calls for displaying the highest total price, so the conservative approach is to show the credit card total as the invoice total, with the lower amount for other payment methods listed alongside it:
- Invoice total (credit card): $1,030.00
- Total if paid by ACH, check or debit card: $1,000.00
How card-network surcharge rules apply in New York
State law is one layer of a surcharge program. Card network rules also govern which transactions may be surcharged, how much may be charged, and what must be disclosed.
- Credit cards only. Visa and Mastercard do not permit surcharges on debit or prepaid card transactions.
- Receipt disclosure. The surcharge amount must be shown separately on the transaction receipt.
Frequently asked questions about New York credit card surcharges
Is it legal to charge a 3% credit card fee in New York?
It depends on the business’s cost of acceptance. A 3% surcharge is permitted only if it does not exceed the amount the business is charged to accept credit cards and stays within card-network caps, including Visa’s 3% maximum. A business whose cost is lower than 3% must charge the lower amount.
Is a sign saying “3% credit card fee” enough in New York?
No. New York requires the total credit card price to be posted before the purchase. A percentage-only notice does not satisfy that requirement by itself.
Can a business add the surcharge during an online checkout?
Yes, but the customer should see the surcharge and total credit card price before authorizing payment. The fee should not first appear after the transaction or only on the receipt.
Can a business surcharge debit or prepaid cards in New York?
No under Visa and Mastercard surcharge rules. The New York statute addresses credit card surcharges, while the card networks prohibit surcharging debit and prepaid transactions.
Does New York’s surcharge law apply in New York City?
Yes. Section 518 is a state law, so it applies to sellers in New York City the same way it applies elsewhere in New York. The statute also lets municipal consumer affairs offices, city corporation counsel, and other local government designees enforce it, and any penalties they collect stay with the municipality.
Does § 518 apply when a New York business sells to a customer in another state?
Section 518 applies to any seller imposing a surcharge and has no exception based on where the customer is located. In practice, that means New York businesses should follow New York’s price-display requirements on all of their credit card sales, and also check the law of the customer’s state, which may add its own limits or restrictions.
Does the New York credit card surcharge law apply to ACH or bank transfers?
Section 518 governs credit card surcharges. ACH and bank-transfer fees are a separate issue and may be subject to different contractual, processor, or legal requirements.
How Yeeld helps
Yeeld helps businesses operationalize credit card surcharging without maintaining state and card-network logic internally. Yeeld’s Surcharging API identifies card funding type in real time and calculates the eligible surcharge based on location and card-network rules, which update automatically as regulations change.
Businesses that want a broader overview of implementation considerations can also read Yeeld’s Surcharging 101 guide.
Planning to surcharge in New York? Talk to Yeeld about your checkout and price-display setup, and we’ll help you map out the right implementation.
