Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement
Summary
This bill amends New York’s General Business Law to limit enforcement by payment card networks in connection with the state’s credit card surcharge notice requirement. It adds a statutory definition of “payment card network” and then prohibits any such network, or subdivision of it, from assessing penalties against a small business or financial intermediary for violating the notice requirement in section 518 of the General Business Law.
The bill also voids any contract, agreement, or arrangement term that would impose such penalties, making those provisions unenforceable as a matter of state law. For purposes of the bill, “small business” is tied to the existing definition in the Economic Development Law. The measure would take effect immediately upon enactment.
Impact
If enacted, the bill would alter the enforcement landscape for credit card surcharge notice compliance by preventing card networks from contractually penalizing small businesses and financial intermediaries for violations of the notice rule. It would not eliminate the underlying notice requirement itself, but it would restrict private network-based sanctions and invalidate conflicting contract terms. The practical effect would be to shield covered businesses and intermediaries from network-imposed fines or similar penalties under New York law.
Sentiment
Based on the bill’s introduction and lack of recorded committee debate or votes in the provided materials, the available sentiment appears neutral to supportive of reducing burdens on small businesses and financial intermediaries. The bill is framed as a protection measure for smaller market participants rather than a broad regulatory expansion. No opposition is documented in the supplied record, but the proposal could be viewed as limiting the enforcement tools available to payment card networks.
Contention
The main point of contention is likely to be whether payment card networks should retain the ability to enforce compliance through penalties, versus whether those penalties unfairly burden small businesses and financial intermediaries. Supporters would emphasize relief from private contractual sanctions and protection of small businesses; critics may argue that removing network penalties could weaken compliance with surcharge notice rules and reduce uniform enforcement. The bill specifically targets penalties imposed by networks, not the notice requirement itself, which may narrow but not eliminate disagreement.
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.
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.
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.
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.
Excludes the amount of state and local taxes and fees from the amount on which an interchange fee is charged for that electronic payment transaction by a credit or debit card network; prohibits a payment card network from altering or manipulating the computation and imposition of interchange fees.
Excludes the amount of state and local taxes and fees from the amount on which an interchange fee is charged for that electronic payment transaction by a credit or debit card network; prohibits a payment card network from altering or manipulating the computation and imposition of interchange fees.
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.
Requires certain legal notices related to class actions be in a readable format; provides penalties failing to comply with the requirements for legal notices.