Many businesses are confused when it comes to credit and debit card surcharges. According to the NYS Division of Consumer Protection, 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.

The rules are different for debit 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. This chart illustrates several common transactions and helps explain these rules.