In a nutshell, a recent law in New York changed how businesses show credit card prices to customers.
Here’s a breakdown of what you need to know:
Businesses now have to show the total price, including any credit card surcharges, before customers check out.
This is to ensure customers know the exact amount they’ll pay.
If a business offers a cash discount, it can display both the credit card price and the cash price.
They aren’t obligated to show the lower cash price; they can inform customers through signs about the discount.
Businesses can’t simply put up signs saying they charge a percentage for credit card use.
Blanket statements about charging fees are not allowed either.
The law requires businesses to show the real credit card prices for each item or service.
Alternatively, they can use a single price for both cash and cards.
Credit card surcharges are capped at the amount charged to the business by credit card companies.
This prevents businesses from overcharging customers for using credit cards.
The law only applies to credit cards and not debit cards.
Debit card users won’t be affected by these pricing changes.
Governor Kathy Hochul emphasizes the importance of transparency to build trust between businesses and customers.
Customers should be empowered to budget accurately without facing surprise surcharges.
Youssef Mubarez, from the Yemeni American Merchants Association, expresses concerns.
Small businesses may find the new law burdensome, creating extra work and potentially portraying them negatively.
Mubarez argues that the law may make small businesses appear as if they are hiding fees, impacting their efforts to save money and stay afloat.
Youssef Mubarez, the director of public relations, believes the law unfairly burdens small business owners who are already facing challenges.
Small businesses may argue that they are simply trying to save money to keep their operations running smoothly.