S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5924
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 24, 2023
                                ___________
 
 Introduced  by  M.  of A. WEPRIN, AUBRY, BENEDETTO, COLTON, COOK, GLICK,
   GUNTHER, HEVESI, LAVINE, LUPARDO, MAGNARELLI, PAULIN, RAMOS, L. ROSEN-
   THAL, 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:
 
   Section  1. Section 518 of the general business law, as added by chap-
 ter 160 of the laws of 1984, is amended to read as follows:
   § 518. [Credit] PAYMENT card surcharge prohibited.   1. No  seller  in
 any  sales  transaction may impose a surcharge on a holder who elects to
 use a credit card OR DEBIT CARD in lieu of payment by  cash,  check,  or
 similar  means.  FOR  PURPOSES  OF THIS SECTION, "DEBIT CARD" INCLUDES A
 PREPAID CARD OR OTHER MEANS OF ACCESS TO PREPAID FUNDS THAT MAY BE  USED
 TO  INITIATE  ELECTRONIC  FUNDS TRANSFERS AND MAY BE USED WITHOUT UNIQUE
 IDENTIFYING INFORMATION SUCH AS  A  PERSONAL  IDENTIFICATION  NUMBER  TO
 INITIATE ACCESS TO PREPAID FUNDS.
   2. NOTHING IN THIS SECTION SHALL PROHIBIT ANY SELLER FROM:
   A.  OFFERING  DISCOUNTS TO A BUYER TO INDUCE THE BUYER TO PAY BY CASH,
 CHECK, DEBIT CARD OR SIMILAR MEANS RATHER THAN BY CREDIT CARD  OR  DEBIT
 CARD,  IF  SUCH  DISCOUNTS  ARE  OFFERED  TO  ALL PROSPECTIVE BUYERS AND
 DISCLOSED CLEARLY AND CONSPICUOUSLY; OR
   B. IMPOSING A SURCHARGE ON A HOLDER WHO, IN CONNECTION WITH  A  CREDIT
 CARD  OR  DEBIT CARD TRANSACTION, RECEIVES CASH BACK BEYOND THE PURCHASE
 AMOUNT OF THE SALES TRANSACTION, BUT SUCH SURCHARGE MAY ONLY BE  APPLIED
 IF  DISCLOSED  CLEARLY  AND  CONSPICUOUSLY  TO  THE  HOLDER PRIOR TO THE
 COMPLETION OF THE TRANSACTION AND ONLY APPLIED TO  THE  AMOUNT  OF  CASH
 BACK PROVIDED BY THE SELLER.
   3. NO PERSON MAY PROHIBIT A SELLER FROM:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09891-01-3
              

 A. 5924                             2
 
   A.  OFFERING  DISCOUNTS  TO  A BUYER TO INDUCE PAYMENT BY CASH, CHECK,
 DEBIT CARD OR SIMILAR MEANS RATHER THAN BY CREDIT CARD OR DEBIT CARD  IF
 SUCH DISCOUNTS ARE CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION; OR
   B.  IMPOSING  A SURCHARGE ON A HOLDER WHO, IN CONNECTION WITH A CREDIT
 CARD OR DEBIT CARD TRANSACTION, RECEIVES CASH BACK BEYOND  THE  PURCHASE
 AMOUNT  OF THE SALES TRANSACTION, BUT SUCH SURCHARGE MAY ONLY BE APPLIED
 IF DISCLOSED CLEARLY AND  CONSPICUOUSLY  TO  THE  HOLDER  PRIOR  TO  THE
 COMPLETION  OF  THE  TRANSACTION  AND ONLY APPLIED TO THE AMOUNT OF CASH
 BACK PROVIDED BY THE SELLER.
   4. AN ELECTRONIC PAYMENT SYSTEM  MAY  NOT,  DIRECTLY  OR  THROUGH  ANY
 AGENT,  PROCESSOR  OR  MEMBER  OF  SUCH  SYSTEM, IMPOSE ANY REQUIREMENT,
 CONDITION, PENALTY OR FINE IN A CONTRACT WITH A SELLER RELATING  TO  THE
 DISPLAY,  AT THE POINT OF SALE, OF PRICING FOR GOODS OR SERVICES OFFERED
 BY SELLER, INCLUDING A DISPLAY RELATING TO A DISCOUNT TO INDUCE  PAYMENT
 BY  CASH,  CHECK OR SIMILAR MEANS. THIS PROHIBITION SHALL NOT APPLY WITH
 RESPECT TO THE DISPLAY OF PRICING FOR GOODS OR  SERVICES  IN  ADVERTISE-
 MENTS.
   5.  Any  seller  who  violates the provisions of this section shall be
 guilty of a misdemeanor punishable by a fine not to exceed five  hundred
 dollars or a term of imprisonment up to one year, or both.
   6.  IF AN ELECTRONIC PAYMENT SYSTEM IMPOSES A FINE ON AN ACQUIRER THAT
 RESULTS IN THE PAYMENT BY A SELLER THAT VIOLATES ANY PROVISION  OF  THIS
 SECTION, THE ELECTRONIC PAYMENT SYSTEM SHALL BE LIABLE TO THE SELLER FOR
 THE  AMOUNT  OF  ANY  SUCH  FINE  PAID  BY THE SELLER, AND, IN ADDITION,
 SUBJECT TO A CIVIL PENALTY UP TO TWICE THE AMOUNT OF SUCH FINE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.