DOS
December 08, 2020
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CONSUMER ALERT: NYS DIVISION OF CONSUMER PROTECTION ALERTS CONSUMERS TO NY LAW RELATED TO CREDIT AND DEBIT CARD SURCHARGES |
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This Holiday Season, Using Your Credit Card Should Not Cost More But Using Cash Could Save You Some Dough Businesses Must Post Their Credit or Debit Card Pricing If It’s Higher Than Their Cash Price As part of its seven-part consumer alert holiday series, the New York State Division of Consumer Protection is reminding consumers that credit card surcharges are prohibited in New York State. Businesses are not allowed to advertise a price and add a surcharge at the point of sale when a consumer elects to pay with a credit card. Instead, businesses are required to inform consumers of the higher credit card price for a product or service by posting the higher price. Businesses are also able to offer a discount to consumers who pay in cash. New Yorkers using debit cards do not enjoy the same protections as those using credit cards. A surcharge or higher fee for the use of a debit card is permitted but must be accompanied by clear disclosure at the advertised street signage or prominent placement in the retail location. “Many consumers and businesses are confused when it comes to surcharges in the marketplace,” said Secretary of State Rossana Rosado, who oversees the New York State Division of Consumer Protection. “New York businesses must advertise accurate prices. A business may offer a discount if consumers pay in cash, but cannot charge more at the register simply because a consumer uses their credit card.” The following illustrates common New York consumer transactions:
In New York State, the New York State Attorney General has authority to enforce these laws and the Division of Consumer Protection is charged with assisting aggrieved consumers in the marketplace. When issues arise with New York State merchants charging additional fees improperly, consumers are encouraged to:
Consumers can best support their complaints by submitting evidence of noncompliance, which may include pictures of the advertised price and fees, receipts with fees assessed, merchant’s location details, etc. The New York State Division of Consumer Protection provides voluntary mediation, between a consumer and business, when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. To view consumer alerts, consumers can visit https://www.dos.ny.gov/about/newsroom.html. The Division can also be reached via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer.
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