Credit card processing and merchant services in New York
New York caps surcharges at what the card company charges you and makes you post the full card price. Since March 2026, stores statewide must take cash. We help you get both right.
Card surcharges
Allowed with limitsSurcharges can't exceed what the card company charges you, and you must post the total price for paying by card.
Sales tax
4% state rate, plus local
Last checked
October 6, 2026
New York's surcharge law is about what the customer sees before paying. Under General Business Law Sec. 518, as amended effective February 11, 2024, a business that surcharges credit cards must post the total price for paying by card, surcharge included, and the surcharge can't exceed what the card company charges the business. Two-tier pricing is allowed, meaning the card price posted next to the cash price.
The Department of State's guidance shows where businesses slip. A price tag or menu note announcing a percentage surcharge doesn't comply on its own. Neither does a "service fee" or "non-cash adjustment" that first appears on the receipt. You comply by posting the card price next to the cash price, posting the card price and offering a discount for cash, or moving all your prices to the card price.
Cash became a statewide requirement in March 2026. General Business Law Sec. 396-ii makes it unlawful for a food store or retail establishment to refuse cash or to charge cash payers more. You may refuse bills over $20, and cash for phone, mail or online orders unless payment happens on your premises. A store with a fee-free device that converts cash to a prepaid card, with a minimum deposit of no more than $1, is exempt.
Sales tax starts at the 4% state rate, and cities, counties and school districts add local rates, so your combined rate depends on where the sale happens. Our New York City page covers the city's rate and its own cash rule.
We price on interchange-plus, and a free statement review shows what the card companies actually charge you, which is the most a New York surcharge can be.
What New York merchants should know
Credit card surcharges: post the total card price
Under General Business Law Sec. 518, a seller that surcharges credit card payments must clearly and conspicuously post the total price for paying by credit card, surcharge included, and the surcharge may not exceed what the credit card company charges the business. The final price can't exceed the posted price, and two-tier pricing (the card price posted alongside the cash price) is allowed. The amended law took effect February 11, 2024.
The Department of State's reference guide lists a surcharge warning with a percentage on a price tag or menu, and fee lines that appear only on the receipt, as non-compliant. New York merchants also have to follow the card networks: Visa's 3% cap, Mastercard's 4% cap, and their ban on surcharging debit and prepaid cards.
Sources: New York State Senate, General Business Law Sec. 518; Governor of New York, New law to clarify disclosure of credit card surcharges goes into effect February 11 (2024); New York Department of State, Division of Consumer Protection, Credit card surcharge reference guide (PDF)
Cash acceptance (statewide since March 2026)
General Business Law Sec. 396-ii (Chapter 548 of 2025, signed November 21, 2025 and effective 120 days later) makes it unlawful for a food store or retail establishment to refuse cash from consumers or to charge cash payers a higher price. A store may refuse bills larger than $20, and cash for phone, mail or internet orders unless payment takes place on the premises. A store with a fee-free device that converts cash to a prepaid card (minimum deposit no more than $1) is exempt. Penalties are up to $1,000 for a first violation and $1,500 for each later one.
Sources: New York State Senate, General Business Law Sec. 396-ii, Cashless policies prohibited; New York State Senate, Bill S4153A (2025), signed as Chapter 548 of 2025
New York sales tax by location
New York's state sales and use tax rate is 4%. The combined rate is the state rate plus any local rate imposed by the city, county or school district where the sale occurs, so look up each location's rate before you set your terminals.
Source: New York State Department of Taxation and Finance, Find sales tax rates
Payment services we provide
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Surcharging and cash discount
Dual pricing: what it is and how it differs from surcharging
Dual pricing posts a card price and a cash price for every item. How it differs from surcharging and cash discounts, which rules apply, and how to display it.
Fees and pricing
Tiered pricing for credit card processing, explained
Tiered pricing sorts card sales into qualified, mid-qualified and non-qualified rates. Why sales slip into the pricey tiers, and how to spot it on a statement.
Common questions
How much can I surcharge in New York?
No more than what the card company charges your business for that credit card use, under General Business Law Sec. 518. The Visa and Mastercard caps of 3% and 4% apply too. You must post the total card price, surcharge included, before checkout, and debit and prepaid cards can't be surcharged under network rules.
Is a "3% credit card surcharge" sign enough in New York?
No. The Department of State's guidance lists a surcharge warning with a percentage on a price tag or menu as non-compliant. Post the actual total card price, either on its own or next to the cash price, before the customer pays.
Do New York stores have to accept cash?
Yes, since March 2026. General Business Law Sec. 396-ii bars food stores and retail establishments from refusing cash or charging cash payers more. Bills over $20 and remote orders paid off premises are exceptions, and a store with a qualifying fee-free cash-to-prepaid-card device is exempt. Fines reach $1,000 for a first violation and $1,500 after that.
What sales tax rate do I charge in New York?
The state rate is 4%, and the combined rate adds whatever local rate the city, county or school district imposes where the sale occurs. Look up each location on the Department of Taxation and Finance rate page and set its rate separately.
Can I offer a discount for paying cash instead?
Yes. Two-tier pricing, with the card price posted alongside the cash price, is expressly allowed under Sec. 518, and the Department of State lists offering a cash discount off the posted card price as a compliant approach.
Other states we serve besides New York
- Alabama
- Arizona
- Arkansas
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- Colorado
- Connecticut
- Delaware
- Florida
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- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
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- Ohio
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- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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