Prohibits payment card networks from assessing penalties against small businesses or financial intermediaries who fail to comply with the credit card surcharge notice requirement

2025 Regular Session

Prohibits payment card networks from penalizing small businesses or intermediaries solely for not complying with surcharge notice requirements.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION

Bill Summary: A 11283 (2025-2026) – New York

Purpose and intent

This bill prohibits payment card networks from imposing penalties on small businesses or financial intermediaries that fail to comply with a required credit card surcharge notice. In short, it aims to protect small businesses and intermediaries from punitive penalties when they do not meet surcharge notice requirements, presumably by clarifying or limiting the networks’ enforcement authority.

Key provisions and changes

Prohibition on penalties: Payment card networks would be barred from assessing any penalties against eligible small businesses or financial intermediaries solely for not complying with the surcharge notice requirement.

Targeted parties: The protection specifically covers small businesses and financial intermediaries that encounter surcharge notice compliance issues.

Scope of non-compliance: The bill addresses the scenario where a surcharge notice requirement exists, and non-compliance occurs; it focuses on penalties as the enforcement mechanism by networks.

Note: The bill text may define what qualifies as a “small business” and may specify the exact surcharge notice requirements and any exemptions. The summary above reflects the information available in the bill title and action history; the full provisions would provide precise definitions, timelines, and enforcement details.

Who would be affected

Small businesses that accept payment cards and are subject to surcharge notice requirements.

Financial intermediaries that process card transactions and may be involved in surcharge notices or related compliance activities.

Payment card networks (e.g., major networks) would be constrained in their ability to levy penalties in these circumstances.

Procedural and timeline aspects

Action history: As of 2026-05-06, the bill has been referred to the Consumer Affairs and Protection committee.

Next steps: Committee consideration, potential amendments, and floor votes in the New York Legislature would determine advancement to the governor for signature or veto. If enacted, the effective date and any transitional provisions would be specified in the bill.

Practical impact and considerations

This bill could reduce the risk of penalties for small businesses and intermediaries that are working to comply with surcharge notice rules, potentially providing regulatory relief and stability in surcharge practices.

It may influence how payment card networks enforce surcharge notice compliance, shifting focus away from monetary penalties toward other compliance mechanisms or guidance.

Businesses should watch for definitions and thresholds in the final enacted text to understand eligibility and any reporting or disclosure requirements tied to surcharge notices.

If you’d like, I can tailor this summary to include a comparison with existing NY statutes on credit card surcharges or draft a one-page briefing for stakeholders.