New York Credit Card Surcharge Law (GBL 518)

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This page is general information, not legal advice. It is current as of September 16, 2026, and quotes or summarizes the primary sources listed at the end. Surcharge rules change through new laws, amendments and court cases, so check current rules with your processor and your own counsel before you add a card fee. CELER Merchants is an independent merchant services agent, not a law firm or a processor.

What General Business Law 518 says

Section 518 of the New York General Business Law says a seller who imposes a surcharge on credit card use must clearly and conspicuously post the total price for using a credit card. The surcharge may not exceed the amount the credit card company charges the business for that card, and the final sale price may not be greater than the posted price. The law expressly allows a two-tier pricing system that shows both a credit card price and a cash price. The New York Department of State says this guidance applies starting February 11, 2024.

What the Department of State says you can and cannot do

The Department of State's Division of Consumer Protection published a one-page reference guide. It says a business has the option of passing along the actual cost of credit card processing as a surcharge, but must display the highest total price, excluding sales tax. The legal examples it shows are: clearly displaying both the credit card price and the cash price, listing the higher credit card price and advertising a discount for cash, or using the same price for cash and credit. The illegal examples are: a sign on the wall or at the register saying a fee applies to all credit card sales, a surcharge warning on the price tag (such as a percentage fee if paying by credit card), advertising that prices include a cash discount that does not apply to card purchases, and charging separate receipt line items such as a convenience, service, processing, technology or non-cash adjustment fee without clearly posting the total price before purchase.

Penalties and enforcement

Under section 518, a violation is subject to a civil penalty of up to $500 for each violation, recoverable in court. The section can be enforced concurrently by the director or commissioner of a municipal consumer affairs office, or by a town attorney, city corporation counsel or other lawful designee. The Department of State lists (800) 697-1220 and dos.ny.gov/CreditCardSurcharge for questions.

How card network rules fit in

Every US merchant who accepts Visa also has to follow Visa's rules, whatever state law allows. Visa's U.S. Merchant Surcharge Q&A says to notify your acquirer at least 30 days before you start surcharging, to limit surcharging to credit cards (debit and prepaid cards cannot be surcharged, even when a debit cardholder selects "credit"), to keep the amount at or below your merchant discount rate for that card or 3%, whichever is lowest, and to disclose the surcharge at the point of entry, at the point of sale and on every receipt. Mastercard, American Express and Discover set their own conditions, so check current rules for each network you accept. Where a state rule and a network rule differ, follow the stricter one. In New York that means a percentage surcharge added at the register is not enough on its own: the card price itself has to be posted.

Practical setup for New York merchants

1. Decide whether you will post dual prices (cash and card) or a single card price with a cash discount. 2. Update shelf tags, menus, price boards and online product pages so the card price is visible before purchase. 3. Keep the difference at or below what you are actually charged to accept credit cards, and keep statements that show it. 4. Configure terminals so debit and prepaid cards are never charged the card price uplift where network rules forbid it. 5. Give your acquirer the required notice before starting. 6. Review the program at least once a year, and again if you open a location in another state.