Rules for Staying Compliant with Dual Pricing

A successful dual pricing program saves business operators money, but most importantly, is compliant. Compliance requirements can vary by state, card brand, and industry, making it important to work with a payment processor that understands the rules.

As ACT Processing is local to New York, we keep up to date with New York’s credit card processing laws. 

As of February 11, 2024, New York requires businesses using dual pricing or credit card surcharges to clearly disclose pricing before a customer makes a purchase. Specifically, businesses must display the total credit card price and, when applicable, the cash price, rather than simply posting a sign stating that an additional percentage fee will be added at checkout.

While requirements differ by jurisdiction, there are several best practices that help businesses maintain a compliant dual pricing program:

• Clearly display pricing. Customers should know the total amount they will pay based on their chosen payment method before completing their purchase.

• Be transparent. Pricing should be easy to understand on menus, price tags, signage, invoices, and online checkout pages where applicable.

• Avoid surprise fees. Customers should never learn about a pricing difference only after their purchase has been totaled.

• Follow card brand and state requirements. Payment network rules and state laws may impose additional disclosure or operational requirements.

• Train your staff. Employees should understand how the program works and be able to answer customer questions confidently and accurately.

Our team helps businesses implement dual pricing the right way from day one. We provide compliant payment technology, guidance on signage and pricing displays, and ongoing support to help your business meet applicable requirements while delivering a seamless customer experience.

Disclaimer: This information is provided for general educational purposes and should not be considered legal advice. Businesses are responsible for complying with all applicable federal, state, local, and payment network requirements.

To learn more about New York state credit card processing compliance requirements, visit their site here. 

For more information, see below, or visit the NY State website.