New Yorkers can now bid farewell to unexpected costs on credit card purchases thanks to Governor Kathy Hochul's recent consumer protection stride. This legislative update, effective February 11, 2024, aims to eliminate the shock of surprise credit card fees by promoting absolute price transparency.
The law, inked by Governor Hochul in December 2023, rectifies the existing credit card surcharge laws. In the spirit of fairness, this move promises to let consumers make informed decisions when using their credit cards, fully aware of the costs involved.
How Does the New Law Affect Credit Card Transactions?
The main impact of the new statute is the limitation of credit card surcharges to the actual costs charged to businesses by credit card companies. In essence, businesses can no longer mark up prices unfairly to credit card users; they must disclose any additional fees upfront.
Before consumers get to the checkout counter, they will be greeted with either the total price of an item or service, including the credit card surcharge, or witness a dual-pricing strategy where credit card prices are displayed next to cash prices. Through this, Governor Hochul envisions a more transparent New York where shoppers can exercise financial prudence, knowing precisely what they'll pay, free from the jolt of unanticipated fees.
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What Should Businesses and Consumers Know About Compliance?
As per the new regulations, businesses must adapt their pricing disclosures. Price displays must now highlight if a higher rate applies to credit card purchases than cash. The Department of State's Consumer Protection Division (DCP) has taken steps to enlighten the business community on acceptable practices while providing several illustrative examples.
The correct way for businesses to display pricing would involve listing the higher credit card price alongside a lower cash price or indicating a discount for cash payment at the point where pricing information is provided. Conversely, merchants can standardize all pricing to reflect the credit card price.
On the no-go list are practices like posting signs at the entrance or cash register that notify customers of a general surcharge rate for credit card usage or tagging items with additional percentages for credit card payments. Fees described as convenience, service, or technology fees, added as separate line items on a receipt for credit card users, are also out of bounds.
The legislative changes bring transparency and consumer protection to the forefront, and it's pivotal that businesses and consumers alike understand these updates for seamless marketplace interactions.
Empowering Local Authorities and Assisting New Yorkers
Starting in February 2024, local governments will have the elbow room to enforce this law, further strengthening the state's consumer protection framework. Suppose customers encounter any discrepancies in credit card pricing at the register. In that case, they are encouraged to contact the Division of Consumer Protection to receive a refund of excess fees or to the Attorney General or local governments to report and enforce merchants' compliance.
The Division of Consumer Protection stands ready to assist New Yorkers in navigating their rights under this new law with resources and educational materials. Consumers can also utilize the Consumer Assistance Helpline for support.
With Governor Hochul's newest legally binding measures, New York paves the way to a future where purchases no longer carry the weight of doubt, where citizens shop confidently, knowing that the price they see is indeed the price they will pay. The state shines as a beacon of consumer rights, emphasizing that trust and transparency are not just optional extras but essential norms in the tapestry of New York's bustling commerce.
Fully operational from an appreciable date in early 2024, the fresh mandates reinforce the ethos of a fair marketplace rooted in transparency and trust. Consumers are being protected and empowered as businesses across New York State adjust their sails towards these conducive winds of change.
