New York Cash Payment Law and Credit Card Surcharge Rules (2026)
Short answerPartly. The New York cash payment law is a New York City rule: under Admin Code § 20-840, most food stores and retail shops must accept cash. Statewide, General Business Law § 518 lets sellers pass on only their actual card processing cost, and only if the highest total price is shown upfront.
Last verified: November 10, 2026 against General Business Law § 518 (Department of State guidance), General Business Law § 396-i and NYC Admin Code § 20-840
The New York cash payment law is really three separate rules that people lump together: the New York City ban on cashless stores, the state credit card surcharge law and the gift card law. This page explains each one, who enforces it and what to do if a business breaks it.
It covers state and city law only and is general information, not legal advice. For other money topics, browse our money, business and consumer laws section.
Key facts
- NYC cash rule:
Admin Code § 20-840, in effect since November 2020 for food stores and retail establishments. - Cash limit: a covered shop may refuse bills above $20.
- Credit card surcharge: Department of State guidance in effect since February 11, 2024. The fee may pass on only the actual processing cost.
- Gift cards:
General Business Law § 396-ibars most fees and sets a nine-year minimum expiration for non-promotional cards. - Where to complain: 311 or DCWP for the NYC cash rule; Department of State, (800) 697-1220, for card surcharges.
What is the New York cash payment law?
There is no single statute by that name. When people search for the New York cash payment law, they usually mean one of two questions: must a business take cash, and can a business charge extra when you pay by card.
The first question has a clear answer only in New York City, where a local law requires cash acceptance. We did not find a state statute that requires private businesses to accept cash outside the city, so a shop upstate generally sets its own payment policy. The surcharge and gift card rules, however, apply in every county.
New York cash payment law in New York City: who must take cash?
Food stores and retail establishments in New York City must accept cash. Local Law 34 of 2020 added Admin Code § 20-840, which says it is unlawful for a food store or retail establishment to refuse cash from consumers. Banks and trust companies are excluded.
| Question | Answer under the NYC cash rule |
|---|---|
| Who is covered? | Food stores and retail establishments selling goods or services to consumers |
| Can a shop refuse large bills? | Yes, bills denominated above $20 |
| Online, phone or mail orders? | A shop may refuse cash for those, unless the payment takes place on its premises |
| Can cash payers be charged more? | No. The same item cannot cost more for a cash customer |
| Any workaround? | A machine that converts cash to a prepaid card, if it meets the law’s conditions, such as no fee and no minimum deposit above $1 |
| Penalty | Up to $1,000 for a first violation and up to $1,500 for each later one |
The Department of Consumer and Worker Protection (DCWP) enforces the rule based on complaints. In October 2022 it announced a settlement with Van Leeuwen Ice Cream, which agreed to comply at its New York City shops and pay $33,000 in outstanding civil penalties after DCWP brought more than 90 cases.
New York City note: The cash rule is a city law, so it does not follow you to Westchester, Long Island or upstate. A “cards only” sign in Buffalo is a business choice. The same sign in Brooklyn can be a violation.
New York cash payment law and credit card fees: is it legal to charge one?
Yes, but with limits. Since February 11, 2024, the Department of State says a business may pass along the actual cost of credit card processing as a surcharge, provided it displays the highest total price (excluding sales tax) before you buy. The statute is General Business Law § 518.
In October 2018, the state’s highest court addressed an earlier version of the law in Expressions Hair Design v. Schneiderman. The practical lesson then and now is the same: the price you see has to be the price that counts.
| Practice | Allowed? |
|---|---|
| Showing both a card price and a lower cash price | Yes |
| Passing on the actual processing cost, with the highest total price posted before purchase | Yes |
| A “convenience,” “service” or “processing” fee that appears only on the card receipt, with no total price posted beforehand | No |
| Advertising a cash discount that does not apply to card purchases, without showing the higher card price | No |
What is the maximum credit card surcharge under the New York cash payment law?
The state guidance sets the limit as the business’s actual cost of credit card processing, not a fixed percentage. A seller cannot use the fee as extra profit. Ask for the final price before you pay, and compare it with the posted total.
New York cash payment law and debit card fees: what applies?
The state surcharge guidance speaks only to credit card fees. It does not address debit cards, so we cannot point you to a state rule that says how a debit fee must be shown. The safest approach is the same: confirm the full price before you tap or swipe, and treat any fee that appears only after payment as a reason to ask questions.
New York gift card law: expiration and fees
Gift cards sit in the same part of the cash and card conversation, and they are tightly regulated. General Business Law § 396-i covers certificates, electronic cards and similar pre-funded records. Fare cards, phone cards and deposit-linked payment devices are excluded.
- Expiration: a non-promotional card cannot expire earlier than nine years after issuance, or the date funds were last loaded, whichever is later.
- Fees: no activation, redemption, service or dormancy fees, with one exception: an open-loop card may carry a one-time activation or issuance fee of no more than $9.
- Small balances: a non-open-loop, non-promotional card with less than $5 left can be redeemed for its cash value on request.
- Balances: a card whose value shrinks over time cannot be sold.
- Scam notice: sellers must post a warning about prepaid card scams where cards are sold.
The Attorney General can seek an injunction, restitution and a civil penalty of up to $1,000 per violation. Cards sold at a discount to employers, schools or nonprofits for fundraising, and cards given away free in promotions, fall under separate exemptions.
Penalties under the New York cash payment law and related rules
| Rule | Who enforces | Penalty or remedy |
|---|---|---|
| NYC cash acceptance | DCWP, through 311 complaints | Up to $1,000, then up to $1,500 per later violation |
| Card surcharge disclosure | Department of State, Division of Consumer Protection | The guidance does not list a fine; complaints go to (800) 697-1220 |
| Gift cards | Attorney General | Injunction, restitution and up to $1,000 per violation |
Real examples of the New York cash payment law
- A Brooklyn coffee shop posts “cards only.” That likely violates the city rule unless the shop has a compliant cash-to-prepaid-card machine.
- A Manhattan shop will not take your $50 bill. That is allowed. The city rule lets covered shops refuse bills above $20.
- A Buffalo restaurant adds a “service fee” line only on card receipts. No sign near the menu shows the higher total. That is the kind of receipt-only fee the state guidance lists as illegal.
Timeline of key dates
| Date | What happened |
|---|---|
| October 2018 | The Court of Appeals rules in Expressions Hair Design v. Schneiderman. |
| January 23, 2020 | The City Council passes Local Law 34, the cashless ban. |
| November 2020 | The NYC cash acceptance rule takes effect. |
| October 20, 2022 | DCWP announces the Van Leeuwen settlement. |
| February 11, 2024 | Department of State credit card surcharge guidance takes effect. |
Myths and facts about the New York cash payment law
- Myth: Every New York business must take cash. Fact: The verified rule is a New York City one, and it has a $20 bill limit.
- Myth: Credit card surcharges are banned in New York. Fact: They are allowed if limited to actual cost and shown upfront.
- Myth: A gift card can lose value after a year. Fact: Non-promotional cards generally cannot expire for at least nine years.
What to do if a business breaks the New York cash payment law
- Keep your receipt and take a photo of the sign or price tag.
- Ask the manager to correct the charge or accept your payment method.
- For a refused cash payment in New York City, call 311 or file with DCWP.
- For a card surcharge, contact the Department of State at (800) 697-1220.
- For a gift card problem, file a consumer complaint with the Attorney General.
Frequently asked questions
Is it legal to charge a credit card fee in NY?
Yes, within limits. Since February 11, 2024, a business may pass on its actual credit card processing cost if it displays the highest total price before purchase. A fee that shows up only on the receipt is not allowed.
Is it legal to charge a debit card fee in NY?
State guidance covers credit card fees and does not address debit cards. Confirm the full price before paying, and contact the Department of State if you are unsure how a fee was disclosed.
Do New York City stores have to accept cash?
Yes. Under the New York cash payment law as it applies in the city, food stores and retail establishments must accept cash under Admin Code § 20-840. They may refuse bills above $20 and cash for online, phone or mail orders not paid on the premises.
Can a store charge more if I pay with cash?
Not in New York City. The cash rule bars a higher price for the same item when you pay in cash instead of with a card.
Do gift cards expire in New York?
A non-promotional gift card cannot carry an expiration earlier than nine years after issuance, or the last funds load, whichever is later. Most fees are banned under General Business Law § 396-i.
What is the maximum credit card surcharge in New York?
The Department of State guidance caps a surcharge at the business’s actual cost of processing the card. It does not set a fixed percentage, so ask for the final price before you pay.
What changed on this page
- November 10, 2026: first publication, checked against Department of State surcharge guidance,
General Business Law § 396-iandAdmin Code § 20-840. Spotted a mistake? See our corrections page and editorial policy.
If this affects you
If the New York cash payment law or the surcharge rules affect you, start with the right agency. For card surcharges, contact the New York State Department of State’s Division of Consumer Protection. For a refused cash payment in the city, use 311 or DCWP. For a dispute that could turn into a lawsuit, talk to a New York-licensed consumer attorney, and the New York State Bar Association lawyer referral service can help you find one. Business owners can also read our guide to New York business and LLC laws, and consumers facing collection calls can read New York debt collection laws.
