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Merchant services · New York

Merchant Services in New York

New York merchants run everything from Manhattan coffee counters and Queens auto shops to Hudson Valley farm stands, Finger Lakes wineries, and Buffalo bars that live on game nights. Many owners want to recover some of what they pay to take cards, and New York is one of the few states that rewrote its surcharge law recently. Since February 11, 2024, the rule is less about whether you can pass on card costs and more about where the price has to show up. Here's what the law and the state's own guidance say, what that means for dual pricing, and the processing and ATM options we offer New York businesses.

General information, not legal advice. Rules change, so check with a New York attorney before you change how you price or add any fee.

New York's surcharge law: GBL § 518

What the statute says now

New York General Business Law § 518 was rewritten by Chapter 723 of the Laws of 2023, effective February 11, 2024. A seller that adds a surcharge for paying by credit card must:

  • clearly and conspicuously post the total price for paying by credit card, including the surcharge;
  • keep the surcharge no higher than what the card company charges the business for that card use;
  • never charge a final price, including the surcharge, that's higher than the posted price.

The statute expressly allows a two-tier pricing system, meaning a credit card price (including any surcharge) posted alongside the cash price. Violations carry a civil penalty of up to $500 each, and cities, towns, and county consumer affairs offices can enforce the law as well as the state.

What the Department of State says does and doesn't comply

The Department of State's Division of Consumer Protection published practical guidance with examples. It says a sign alone isn't enough. These practices don't comply:

  • a sign at the door and register announcing a 3.9% surcharge on credit card purchases;
  • a 4% "cash discount" built into all prices, with a notice that card payments won't get the discount and an adjustment that shows up only on the receipt;
  • a convenience, service, technology, processing, or "non-cash adjustment" fee added as a separate receipt line;
  • a price tag reading "$10.00, +4% if paying with a credit card."

These practices do comply: listing both the credit card price and the cash price, listing the higher card price and offering a discount for cash, or charging the same price either way.

What that means for dual pricing in New York

Dual pricing can work in New York, but the card price has to be on the shelf tag, the menu, the price board, or the website before the customer pays. A program that shows one price on the menu and adds a "non-cash adjustment" at the terminal is exactly what the state's guidance calls non-compliant. When we set up dual pricing for a New York business, we start with how your prices are posted, not with the terminal settings.

Card-network rules

Network rules apply on top of state law. Under Visa's U.S. rules, a surcharge can only apply to credit cards, never debit or prepaid cards, even when a debit card is run as "credit." It's capped at your merchant discount rate for that card or 3%, whichever is lower. You have to notify your processor 30 days before you start and disclose the surcharge at the point of entry, the point of sale, and on the receipt. A cash discount, by Visa's own description, means posting either the card price only or both prices side by side. A pending Visa/Mastercard settlement, with a fairness hearing set for November 16, 2026, may change some network rules if it's approved.

What New York businesses ask about

  • Restaurants, delis, and bars reprint menus and price boards when they move to two-tier pricing, and they need tip handling that matches.
  • Salons, barbers, and personal services usually quote a service price, so the card price and cash price both need to be on the price list.
  • Auto repair and home-service contractors write estimates and invoices, and want card, ACH, and keyed-in payments on one account.
  • Wineries, farm stands, and seasonal shops upstate and on Long Island need mobile or Bluetooth readers that work at markets and events.
  • Online sellers have to show the card price on the product page, not just at checkout.

Your options, side by side

  1. Two-tier (dual) pricing. Post a cash price and a card price everywhere prices appear, as § 518 allows.
  2. Interchange-plus. You pay the network cost plus a disclosed fixed markup, and keep one posted price.
  3. Flat-rate. One rate per transaction, which is easy to forecast.
  4. Square, if you prefer it. We'll include it in your comparison.

We work through our processing partners for terminals, POS systems, mobile and Bluetooth readers, and virtual terminals for phone and invoice payments. Results depend on your volume, card mix, and current contract, so we don't promise savings before reviewing a statement.

ATMs in New York

Cash still matters at bodegas, bars, laundromats, flea markets, and street fairs. If you want an ATM of your own:

  • You buy and own the machine. It's a purchase, not a loan.
  • You load and run it. You decide how much cash goes in and when.
  • Terms are subject to the partner agreement, and every term is disclosed in writing before you sign.
  • We don't promise monitoring, maintenance, or a revenue share. ATM surcharge income isn't guaranteed.
  • Machines come through our ATM partner, and card processing comes through our processing partners.

FAQ

Can I add a credit card surcharge in New York?

Yes, if you post the total credit card price, including the surcharge, before the sale and keep the surcharge at or below what your card company charges you. A fee that first appears at the register or on the receipt doesn't meet GBL § 518, according to the Department of State.

Is dual pricing legal in New York?

The statute expressly allows a two-tier system where the card price is posted alongside the cash price. Posting the higher card price and offering a cash discount is also listed as compliant in the state's guidance.

Is a sign at the register enough?

No. The Department of State's guidance says a sign announcing a card surcharge doesn't comply on its own. The card price has to be posted.

Can I surcharge debit cards?

No. Card-network rules don't allow surcharges on debit or prepaid cards.

Who enforces the law?

The state, and also local consumer affairs offices and municipal attorneys. Penalties run up to $500 per violation.

Who owns an ATM I get through you?

You do. You purchase it outright and run it yourself, and the terms, which are subject to the partner agreement, are disclosed in writing first.

Get a no-obligation comparison

Send a recent statement and tell us how you post prices today. We'll compare two-tier pricing, interchange-plus, flat-rate, and your current setup for your New York business. We're based in Clifton, Tennessee, and work with New York merchants by phone and email.