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US: Five small NY merchants rally for surcharge fees

 |  June 5, 2013

In response to New York’s ban on the practice of merchants imposing surcharge fees on consumers who use credit cards, done to make up for money lost to credit card companies, five small New York businesses have filed a suit to have the law declared unconstitutional. According to court documents, the companies, which include a liquor store and ice cream parlor, claim that the law allows credit card giants “to keep the costs of credit hidden from consumers” as surcharge fees informed consumers of the those costs that land on the merchant. According to the plaintiffs, the law “frustrates the purpose of federal antitrust law.” Visa Inc. and MasterCard Inc. are currently in a controversial, $7.25 billion settlement over swipe-fees in which the companies would lift their restrictions on surcharges for merchants.

Full Content: Bloomberg

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