In March 2017, the Supreme Court decided that New York’s “no-surcharge” law was a regulation of commercial speech and left it to the appeals court to determine whether the law could survive First Amendment scrutiny.
As of January 8th, 2019, the plaintiffs and the State of New York have reached an agreement that would (pending the courts approval) dismiss the case, allowing all businesses in New York to pass on their credit card fees to customers so long as they make an additional consumer disclosure (which would show the credit card price in dollars and cents).
The New York case was the final remaining legal challenge to a state-level surcharge ban, following recent landmark decisions in California, Florida, and Texas that struck down surcharge bans in those states as unconstitutional. Commenting on this update, Jonathan Razi, CEO of CardX, said that “New York merchants are allowed to pass on their credit card fees so long as they make the required consumer disclosure. And, with this additional clarity, we anticipate it will be only a matter of months before surcharging is available to businesses in all 50 states.”
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