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“‘These legal victories have significantly expanded the market opportunity for surcharging,’ Razi said, and represent a tipping point for the five remaining states that have bans in place – Colorado, Connecticut, Massachusetts, Kansas and Oklahoma – to narrow their scope or drop them altogether.

Razi noted, too, that the New York law maintains an additional disclosure that requires merchants to disclose those fees in dollars and cents wherever they post or quote prices. For instance, a retailer may, on a shelf, display the cash price or the ‘credit price’ alongside one another, may quote it verbally or may show the price differential on an invoice.

Asked by PYMNTS as to whether there will be widespread surcharge adoption by merchants in New York (and elsewhere), and whether there may be ‘early adopters’ of such surcharges, Razi said that nationally, credit card surcharging has already seen strong adoption in verticals such as auto repair, wholesale distribution, law, medicine, accounting, insurance, recurring membership billing and home contractors.

‘We expect that these verticals will be among the early adopters in New York as well,’ said Razi.

He stated that surcharging would likely also see uptake in businesses that have a high cost of goods sold or have low margins, and where he said interchange costs have gone up by 24 percent for rewards cards over a four-year period.”

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