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>> The new law also requires the surcharge passed on to customers using credit cards to the exact amount charged by credit card companies. Yikes! I'm not in NY
by bruce511 3y ago
>> The new law also requires the surcharge passed on to customers using credit cards to the exact amount charged by credit card companies.
Yikes! I'm not in NY, but this seems tricky to implement. I process credit cards and frankly I'm never sure of the "exact amount" they charge. Firstly, different cards have different rates, the issuing bank can play a part, and foreign cards come with another set of rules. (Fortunately the use of foreign cards in NY is, um, very rare...? )
- prepend 3y agoHow would you be able to charge an additional amount but not be able to show it beforehand? I get how calculating the fees can be challenging. But I assumed that shops could calculate if they were adding it as a surcharge.
- xtiansimon 3y agoI think it’s the _average_ (3-4%) fee.
- bruce511 3y agoYeah, that's what I mean. Typically they pick a number that averages out. But the law says they must show the exact amount. And that varies from one card to another
- xtiansimon 3y agoMaybe I'm misreading the connotation of your comment as concern and not as observation. I didn't read the actual letter of the law. I'm not trained in legal compliance (not a CPA), but I do some bookkeeping. In practice average cost should work given the complicated structure of fees. If I was concerned about enforcement/compliance, then I'd round down. (no?)
- lxgr 3y agoThey don’t have to show what they pay their merchant acquiring bank, but what (if any) surcharge they charge you as a customer paying by card (some stores do that, often disclosed only by a sneaky sign far away from the checkout register).