What's happening
This bill prohibits businesses from charging extra fees for account payments, regardless of the payment method, except for expedited payments.
Why it matters
Reduces hidden costs for consumers. by preventing businesses from adding extra charges for paying bills—regardless of whether you pay online, by mail, over the phone, or in person—so customers can better predict and manage their expenses.
Levels the playing field across payment methods. , ensuring that no particular method (like using a credit card, speaking to a live agent, or paying by check) is penalized with an additional fee, except in cases of expedited (rush) payments.
Promotes transparency and fairness in billing practices. , making it harder for companies to use confusing or opaque fee structures that can disproportionately affect people who rely on traditional payment methods, such as seniors or those without easy access to online banking.
Still allows for positive incentives. , so businesses can encourage customers to use certain payment or billing options by offering credits or discounts, but cannot penalize them with fees for their choice of payment method.
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Who cares
Headline styles
Ban Payment Processing Fees
Plain English, a few words. Used as the page title.
Sponsors
9 Co-sponsors
4 Multi-sponsors
History
- Enacting clause stricken
- Referred to consumer affairs and protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5229
2017-2018 Regular Sessions
IN ASSEMBLY
February 7, 2017
Introduced by M. of A. DINOWITZ, ROSENTHAL, JAFFEE, COLTON, MOYA, GALEF, ZEBROWSKI, COOK, RAMOS, WEPRIN, MONTESANO -- Multi-Sponsored by -- M. of A. BRAUNSTEIN, ORTIZ, TITONE, WRIGHT -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting fee charges for payment of an account regardless of the method of payment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 399-zzz of the general business law, as added by chapter 556 of the laws of 2010, is amended to read as follows:
1. (a) Subject to federal law and regulation, no person, partnership, corporation, association or other business entity shall charge a consumer an additional rate or fee or a differential in the rate or fee associated with payment on an account:
(i) when the consumer chooses to [pay by United States mail or] receive a paper billing statement; or
(ii) whether such payment is made by mail, electronic transfer, a live customer service representative, telephone authorization by means of a voice response unit or interactive voice response system, other means or a combination thereof, unless such payment is expedited by such person, partnership, corporation, association or other business entity to credit such payment the same day or, if the payment is received after any established cut-off time, the next business day. For the purposes of this subparagraph, "expedited" means a rush payment method outside the normal and usual course of business.
(b) This subdivision shall not be construed to prohibit a person, partnership, corporation, association or other business entity from offering consumers a credit or other incentive to elect a specific payment or billing option.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03780-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.