S T A T E O F N E W Y O R K
________________________________________________________________________
10430--B
I N A S S E M B L Y
March 25, 2010
___________
Introduced by M. of A. PHEFFER, P. RIVERA, FIELDS, DenDEKKER, JAFFEE,
MARKEY -- read once and referred to the Committee on Consumer Affairs
and Protection -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- reported and
referred to the Committee on Codes -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the general business law, in relation to prohibiting the
imposition of a surcharge by a seller in a sales transaction on a
holder who uses a debit card
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 518 of the general business law, as added by chap-
ter 160 of the laws of 1984, is amended to read as follows:
S 518. [Credit] PAYMENT card surcharge prohibited. 1. No seller in
any sales transaction may impose a surcharge on a holder who elects to
use a credit card OR DEBIT CARD in lieu of payment by cash, check, or
similar means. FOR PURPOSES OF THIS SECTION, "DEBIT CARD" INCLUDES A
PREPAID CARD OR OTHER MEANS OF ACCESS TO PREPAID FUNDS THAT MAY BE USED
TO INITIATE ELECTRONIC FUNDS TRANSFERS AND MAY BE USED WITHOUT UNIQUE
IDENTIFYING INFORMATION SUCH AS A PERSONAL IDENTIFICATION NUMBER TO
INITIATE ACCESS TO PREPAID FUNDS.
2. NOTHING IN THIS SECTION SHALL PROHIBIT ANY SELLER FROM:
A. OFFERING DISCOUNTS TO A BUYER TO INDUCE THE BUYER TO PAY BY CASH,
CHECK, DEBIT CARD, OR SIMILAR MEANS RATHER THAN BY CREDIT CARD OR DEBIT
CARD, IF SUCH DISCOUNTS ARE OFFERED TO ALL PROSPECTIVE BUYERS AND
DISCLOSED CLEARLY AND CONSPICUOUSLY;
B. IMPOSING A SURCHARGE ON A HOLDER WHO, IN CONNECTION WITH A CREDIT
CARD OR DEBIT CARD TRANSACTION, RECEIVES CASH BACK BEYOND THE PURCHASE
AMOUNT OF THE SALES TRANSACTION, BUT SUCH SURCHARGE MAY ONLY BE APPLIED
IF DISCLOSED CLEARLY AND CONSPICUOUSLY TO THE HOLDER PRIOR TO THE
COMPLETION OF THE TRANSACTION AND ONLY APPLIED TO THE AMOUNT OF CASH
BACK PROVIDED BY THE SELLER; OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16246-12-0
A. 10430--B 2
C. ACCEPTING A CREDIT CARD OR DEBIT CARD AS PAYMENT ONLY WHEN THE
PAYMENT AMOUNT IS FIVE DOLLARS OR GREATER.
3. NO PERSON MAY PROHIBIT A SELLER FROM:
A. OFFERING DISCOUNTS TO A BUYER TO INDUCE PAYMENT BY CASH, CHECK, OR
SIMILAR MEANS RATHER THAN BY CREDIT CARD OR DEBIT CARD IF SUCH DISCOUNTS
ARE CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION; OR
B. NOT ACCEPTING A CREDIT CARD OR DEBIT CARD AS PAYMENT WHEN THE
PAYMENT AMOUNT IS LESS THAN FIVE DOLLARS.
4. AN ELECTRONIC PAYMENT SYSTEM MAY NOT, DIRECTLY OR THROUGH ANY
AGENT, PROCESSOR, OR MEMBER OF SUCH SYSTEM, IMPOSE ANY REQUIREMENT,
CONDITION, PENALTY, OR FINE IN A CONTRACT WITH A SELLER RELATING TO THE
DISPLAY, AT THE POINT OF SALE, OF PRICING FOR GOODS OR SERVICES OFFERED
BY SELLER, INCLUDING A DISPLAY RELATING TO A DISCOUNT TO INDUCE PAYMENT
BY CASH, CHECK, OR SIMILAR MEANS. THIS PROHIBITION SHALL NOT APPLY WITH
RESPECT TO THE DISPLAY OF PRICING FOR GOODS OR SERVICES IN ADVERTISE-
MENTS.
5. Any seller who violates the provisions of this section shall be
guilty of a misdemeanor punishable by a fine not to exceed five hundred
dollars or a term of imprisonment up to one year, or both.
6. IF AN ELECTRONIC PAYMENT SYSTEM IMPOSES A FINE ON AN ACQUIRER THAT
RESULTS IN THE PAYMENT BY A SELLER THAT VIOLATES ANY PROVISION OF THIS
SECTION, THE ELECTRONIC PAYMENT SYSTEM SHALL BE LIABLE TO THE SELLER FOR
THE AMOUNT OF ANY SUCH FINE PAID BY THE SELLER, AND, IN ADDITION,
SUBJECT TO A CIVIL PENALTY UP TO TWICE THE AMOUNT OF SUCH FINE.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.