Credit card surcharge rules in New York

Rules checked October 19, 2026 from official sources. Laws and card network rules change, and this isn’t legal advice. Check with your payment provider and your state (or province) before you add a surcharge.

The short answer

New York allows credit card surcharges with limits. You must post the total price for paying by credit card, surcharge included. The surcharge can’t be more than what the card company charges you. And the customer can’t pay more than the price you posted.

Card network rules apply on top. That means credit cards only, a cap, and 30 days’ notice to your provider.

What New York law says

New York General Business Law section 518 sets these rules (N.Y. GBL §518):

• Post the full card price. A seller “shall clearly and conspicuously post the total price for using a credit card in such transaction, inclusive of surcharge.”
• The final price can’t go higher. The customer can’t be charged more than the price you posted.
• The cap. The surcharge can’t be more than the amount the credit card company charges your business.
• Two prices are fine. “Nothing in this subdivision shall be deemed to prohibit merchants from offering a two-tier pricing system.” You can post a card price next to a cash price.
• Penalty. A civil penalty of up to $500 per violation. Municipalities may also enforce the law.

The current version on the NY Senate’s legislation site shows a revision date of February 16, 2024.

Card network rules that apply in New York (and everywhere)

• Credit cards only. Visa says “debit cards and prepaid cards cannot be surcharged” (Visa Q&A), even when a debit cardholder picks “credit” at the terminal. Mastercard says the same for Debit Mastercard and Mastercard prepaid cards (Mastercard).
• Caps. Visa: “your merchant discount rate (MDR) for the applicable credit card or 3% whichever is lowest.” Mastercard: the lower of your average effective rate for Mastercard credit or 4%.
• 30 days’ notice. Visa: “Merchants must notify their acquirer 30 days before they begin surcharging” (Visa). Mastercard wants notice to both Mastercard and your acquirer.
• Disclosure. Visa wants notice at the point of entry, at the point of sale, and on every receipt. Mastercard wants the surcharge amount shown at the point of sale and the dollar amount on the receipt.
• Amex. No stated percentage cap. Fees on Amex can’t be higher than on other payment products (Amex guide).

What this means in practice

Say a coffee costs $5.00 and you surcharge 3% on credit.

• Your menu or shelf price has to show the credit card total, $5.15, not just “$5.00 plus 3%.” Our reading: a sign that only says “3% fee on credit” may not be enough, because the law asks you to post the total price.
• You can show $5.00 cash, $5.15 card side by side. That’s the two-tier pricing the law allows.
• The 3% must not be more than what your card company actually charges you. If your real cost on that card is 2.4%, your cap is 2.4%.
• Debit cards pay $5.00. No surcharge on debit, ever.

One more step before you start: tell your provider 30 days ahead. For Mastercard, tell Mastercard too.

If the signs and caps feel like a lot of work, the other route is to lower the card cost itself.

Keep reading

• Credit card surcharge rules by state: card network rules and every state we’ve verified.
• Cash discount programs, explained: how a real discount differs from a surcharge.
• Credit card processing fees, explained: find your real card cost.