New York 2025-2026 Regular Session

New York Assembly Bill A06541

Introduced
3/5/25  

Caption

Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.

Summary

Bill A06541 seeks to amend the General Business Law in New York by prohibiting payment card networks from imposing penalties on small businesses or financial intermediaries for non-compliance with credit card surcharge notice requirements. The bill defines 'payment card network' and establishes that any contractual clauses that impose such penalties will be rendered void. This aims to protect small businesses from potential financial repercussions that could arise from misunderstanding or failing to meet these requirements. The bill specifically targets the relationship between small businesses and payment card networks, ensuring that these entities cannot penalize smaller operators for issues related to surcharge notifications. By doing so, it aims to create a more equitable environment for small businesses, which often face challenges in navigating complex payment processing regulations. The bill is expected to take effect immediately upon passage, indicating a sense of urgency in addressing the concerns of small business owners. The impact of this legislation would be significant for small businesses in New York, as it would provide them with greater protection against potentially punitive measures from payment card networks. This could lead to a more favorable operating environment for small businesses, allowing them to focus on growth and customer service without the fear of incurring penalties for compliance failures that may be beyond their control. Overall, the sentiment around Bill A06541 appears to be supportive among small business advocates, who view it as a necessary measure to protect their interests. However, there may be concerns from payment card networks regarding the implications of the bill on their operational practices and contractual agreements. The lack of voting history or committee discussions available suggests that the bill is still in the early stages of consideration, and further debate may shape its final form.

Impact

If enacted, Bill A06541 would amend existing New York state laws to prohibit payment card networks from assessing penalties against small businesses or financial intermediaries for failing to comply with credit card surcharge notice requirements. This change would directly affect the contractual relationships between small businesses and payment card networks, rendering any clauses that impose penalties void. As a result, small businesses would have enhanced protections against financial penalties, promoting a more favorable business environment.

Sentiment

The general sentiment surrounding Bill A06541 is positive, particularly among small business advocates who see it as a necessary protection against potentially unfair penalties from payment card networks. However, there may be some apprehension from payment card networks regarding the implications of the bill on their ability to enforce compliance and manage contractual agreements.

Contention

Notable points of contention may arise from payment card networks, which could argue that the bill undermines their ability to enforce compliance with surcharge notice requirements. Small business advocates, on the other hand, are likely to support the bill as a means of protecting small businesses from undue financial burdens. The balance between protecting small businesses and maintaining the operational integrity of payment card networks may be a focal point of debate.

Companion Bills

NY S06125

Same As Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.

Previously Filed As

NY A11283

Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.

NY S06125

Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement; declares any clause of a contract, agreement, or arrangement in violation of such provision void.

NY A4807

Prohibits seller from charging credit card surcharges; establishes notice requirements for credit card minimums and cash discounts.

NY S595

Prohibits seller from charging credit card surcharges; establishes notice requirements for credit card minimums and cash discounts.

NY S10055

Prohibits certain surcharges on certain credit or debit card transactions in the city of New York; provides that no agency or department of the city of New York, or any tribunal located therein, shall be authorized to impose a surcharge on a holder who elects to use a credit or debit card in lieu of payment by cash, check, or similar means to pay any fine, civil penalty, or fee owed.

NY A09599

Requires certain stores that accept credit or debit card payment to accept flexible benefit cards as a form of payment for eligible items; defines terms; establishes penalties for violations of such requirement to accept payment by flexible benefit card; requires the superintendent of financial services to provide education and outreach to covered stored to inform them of the such requirement.

NY HB1443

To Create The Second Amendment Financial Privacy Act; To Prohibit Financial Institutions And Payment Networks From Using Certain Discriminatory Practices; And To Provide For Enforcement Of Violations.

NY SB677

Sales transactions; discounts inducing payment by cash, check, or similar means; options; disclosure; surcharges; repealing provision prohibiting surcharge on use of credit and debit card. Effective date.

NY SB677

Sales transactions; discounts inducing payment by cash, check, or similar means; options; disclosure; surcharges; repealing provision prohibiting surcharge on use of credit and debit card. Effective date.

NY H7022

Requires businesses to notify customers whenever a surcharge or fee for payment made by credit card is imposed.

Similar Bills

No similar bills found.