CardX in Digital Transactions: “New York Credit Card Surcharges Get a Green Light as Merchants and the State Agree To Dismiss Lawsuit”
“Merchant plaintiffs and the state of New York filed motions Tuesday in a federal appellate court to dismiss the merchants’ challenge to New York’s law banning credit card surcharges. As a result, surcharges will be allowed when the merchant posts total prices for credit card purchases in dollars and cents.
‘With today’s resolution, we expect the New York law will survive, but in a far narrower form—and “no surcharge” will simply mean “no surprise,”’ Jonathan Razi, chief executive of CardX, a Chicago-based payment-technology company that automates compliance with surcharging rules, said in an emailed statement. ‘New York merchants are allowed to pass on their credit card fees so long as they make the required consumer disclosure.’
Razi predicts the surcharging will be available to merchants in all 50 states ‘in only a matter of months.’”