New York State Passes New Law Impacting Surcharging
The state of New York recently updated their policy on credit/debit card vs cash pricing. The purpose of the newly enacted law is specifically designed to provide transparency in pricing for consumers.
Kristen E. Larson, of Ballard Spahr, LLP reported that “New York Governor Hochul signed two laws, which aim to protect consumers from (1) unwanted subscriptions by requiring notice to consumers for upcoming automatic renewals with clear instructions for canceling, and (2) confusion over prices by requiring merchants to post the highest price a consumer may pay for a product regardless of payment method.”
What the Bill says about Dual Pricing
The bill, which takes effect February 11th, 2024 states that "The final sales price of any such sales transaction, inclusive of such surcharge, shall not amount to a price greater than the posted price for such sales transaction. Nothing in this subdivision shall be deemed to prohibit merchants from offering a two-tier pricing system. For the purposes of this section, "two-tier pricing system" shall mean the tagging or posting of two different prices in which the credit card price, inclusive of any surcharge, is posted alongside the cash price."
The Simpay Select Plus dual pricing solution which displays the " Card Price" and "Cash Price" is compliant with NY law; however, the advertised price must equal the price at the POS (i.e. if they have menu or prices listed on their shelves, it must match what is displayed at the POS).
Simpay’s goal is to always offer programs that benefit our clients as fully as possible, while maintaining compliance with all applicable laws.
How to Stay Compliant
Staying compliant with the New York requirements isn’t hard — with the right help. That’s why companies like Simpay offer merchant solutions that help you develop dual pricing systems and cash discount programs. The Simpay Select Plus system is fully compliant and makes it easy to implement both surcharges and dual pricing strategies.
