Bill Text: NY A04515 | 2019-2020 | General Assembly | Introduced


Bill Title: Prohibits the imposition of a surcharge by a seller in a sales transaction on a holder who uses a debit card.

Spectrum: Partisan Bill (Democrat 29-0)

Status: (Introduced) 2019-02-04 - referred to consumer affairs and protection [A04515 Detail]

Download: New_York-2019-A04515-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4515
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 4, 2019
                                       ___________
        Introduced  by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. ABBATE,
          ABINANTI, AUBRY, BENEDETTO, CAHILL, COLTON, COOK, CRESPO,  CYMBROWITZ,
          DenDEKKER,  ENGLEBRIGHT,  GALEF,  GLICK,  GOTTFRIED,  GUNTHER, HEVESI,
          JAFFEE, LAVINE, LENTOL, LUPARDO,  MAGNARELLI,  PAULIN,  PERRY,  RAMOS,
          RIVERA,  L. ROSENTHAL,  THIELE, ZEBROWSKI -- read once and referred to
          the Committee on Consumer Affairs and Protection
        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:
     1    Section 1. Section 518 of the general business law, as added by  chap-
     2  ter 160 of the laws of 1984, is amended to read as follows:
     3    §  518.  [Credit]  Payment card surcharge prohibited.  1. No seller in
     4  any sales transaction may impose a surcharge on a holder who  elects  to
     5  use  a  credit  card or debit card in lieu of payment by cash, check, or
     6  similar means. For purposes of this section,  "debit  card"  includes  a
     7  prepaid  card or other means of access to prepaid funds that may be used
     8  to initiate electronic funds transfers and may be  used  without  unique
     9  identifying  information  such  as  a  personal identification number to
    10  initiate access to prepaid funds.
    11    2. Nothing in this section shall prohibit any seller from:
    12    a. offering discounts to a buyer to induce the buyer to pay  by  cash,
    13  check,  debit  card or similar means rather than by credit card or debit
    14  card, if such discounts  are  offered  to  all  prospective  buyers  and
    15  disclosed clearly and conspicuously; or
    16    b.  imposing  a surcharge on a holder who, in connection with a credit
    17  card or debit card transaction, receives cash back beyond  the  purchase
    18  amount  of the sales transaction, but such surcharge may only be applied
    19  if disclosed clearly and  conspicuously  to  the  holder  prior  to  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08221-01-9

        A. 4515                             2
     1  completion  of  the  transaction  and only applied to the amount of cash
     2  back provided by the seller.
     3    3. No person may prohibit a seller from:
     4    a.  offering  discounts  to  a buyer to induce payment by cash, check,
     5  debit card or similar means rather than by credit card or debit card  if
     6  such discounts are consistent with the requirements of this section; or
     7    b.  imposing  a surcharge on a holder who, in connection with a credit
     8  card or debit card transaction, receives cash back beyond  the  purchase
     9  amount  of the sales transaction, but such surcharge may only be applied
    10  if disclosed clearly and  conspicuously  to  the  holder  prior  to  the
    11  completion  of  the  transaction  and only applied to the amount of cash
    12  back provided by the seller.
    13    4. An electronic payment system  may  not,  directly  or  through  any
    14  agent,  processor  or  member  of  such  system, impose any requirement,
    15  condition, penalty or fine in a contract with a seller relating  to  the
    16  display,  at the point of sale, of pricing for goods or services offered
    17  by seller, including a display relating to a discount to induce  payment
    18  by  cash,  check or similar means. This prohibition shall not apply with
    19  respect to the display of pricing for goods or  services  in  advertise-
    20  ments.
    21    5.  Any  seller  who  violates the provisions of this section shall be
    22  guilty of a misdemeanor punishable by a fine not to exceed five  hundred
    23  dollars or a term of imprisonment up to one year, or both.
    24    6.  If an electronic payment system imposes a fine on an acquirer that
    25  results in the payment by a seller that violates any provision  of  this
    26  section, the electronic payment system shall be liable to the seller for
    27  the  amount  of  any  such  fine  paid  by the seller, and, in addition,
    28  subject to a civil penalty up to twice the amount of such fine.
    29    § 2. This act shall take effect on the one hundred twentieth day after
    30  it shall have become a law.
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