New Yorkers are furious about the tricky extra credit card fees

Life in New York has become more expensive and almost no one noticed, writes New York Post. In January, a lengthy trial was completed, which gives New York vendors the right to charge an additional fee for purchases with a clearly defined price paid by credit card.

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Some companies use a cunning loophole and promise non-existent discounts.

“Pay in cash and save,” says the ad in the Italian restaurant AlMar at DUMBO.

So, the panini with mushrooms in this restaurant costs $ 14,5, and this is the price indicated on the menu without discount. When paying by credit card, the visitor pays 4 percent more.

One of the visitors to AlMar wrote in a Yelp review that the extra charge came as a surprise to him.

“We didn’t find out about it until the restaurant’s employees paid the card,” the visitor wrote in February.

Many companies claim that they have to charge extra to be able to pay from 2 to 4% commissions that credit companies require.

“Great food. Unfortunately, the entire effect of this was destroyed by the 4% surcharge when paying with a credit card, ”a visitor to the Taverna Kyclades restaurant told Yelp.

“They have a“ technology charge ”of 4% when using a credit card. This is ridiculous, they tried to convince us that everyone is doing it. We will not return here because of this surcharge, ”one of the visitors to Spanglish NYC wrote on Yelp.

Spanglish quickly responded to this and canceled the surcharge. Instead, they began to offer a discount in the menu to those who pay in cash.

Consumers have reason to complain. Although the Court of Appeal allowed restaurants to charge extra fees, this is illegal.

According to the new rules, the menu or price list should indicate information about a higher price when paying with a credit card. This is done so that visitors do not have to independently calculate the final price.

“This rule should work as follows: the client sees the highest possible price, which includes the commission for paying by credit card. This is usually a price plus 3,5%, ”said Jonathan Razi, CardX CEO, a Chicago-based credit card processing company.

However, many companies continue to ignore the new rules, or do not follow them through ignorance.

For example, in Sal's Pizzeria on Court Street in Cobble Hill, Brooklyn a piece of cake was sold with an incredible 7% mark-up and this information was not listed on the menu.

At the same time, the pizzeria notes that a tap in the amount of 1 dollars for "using a cup" is charged for tap water.

Some sellers disguise the credit card surcharge by calling it a “non-cash adjustment” or “svc fee.” Others write this information in small print on the menu.

Those who violate the law can be fined up to $ 500 or get up to one year in prison.

Hairdressers, nail salons are among the companies that now charge more for the use of credit cards. They often incorrectly add an extra charge.

“There is so much confusion. I barely understand how it works,” said Peter Freeman, co-owner of the Brooklyn Farmacy & Soda Foundation.

The Carroll Gardens ice cream shop joined four other companies that sued the New York City Attorney’s office in 2013 for the opportunity to specify a single unit price, and then add a premium as a fixed fee or percentage.

The case was transferred to the US Supreme Court and back to the State Court of Appeals. The trial ended in January.

Once settled, businesses can raise prices to cover the rising fees they pay banks to service credit cards.

“We buy ice cream. Right after the ice cream, we pay the credit card fees, which is our biggest expense,” he said.

Freeman said that now he is trying to figure out how much to charge for his ice cream.

“We don’t want to just raise prices,” he said.

Businesses are trying to deal with the boom of using credit cards. According to the Nilson Report, plastic spending on Mastercard and Visa, including debit cards, was $ 2018 trillion in 6,021, which is 9,5% more than in the previous year.

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