New Law Will Allow Cs To Accept Credit Cards from Retailers and Pass Along Fees

A new law just signed by Governor Cuomo will allow Cs to accept credit cards from retailers and pass along fees and surcharges, effective April 27, 2020.

The law, which NYSABC pushed hard for, will allow beer wholesalers to accept business credit cards for purchases by retailers and add surcharges and fees at a rate determined by the SLA. Previously retailers could only buy beer in cash or on credit to be paid within a specified time period. The lead sponsors of the law, A06701A/S04241A, were Assemblyman Robin Schimminger, D-Erie County and Senator Todd Kaminsky, D-Nassau County.

Here’s how it will work:

Must Be a Business Card. Must be a business credit (or debit) card issued in the name of the business at the same address as in the retail license. If you exercise reasonable diligence to verify that it is a business card, it is not a violation if the retailer uses a credit card other than a business card. You can check a license name and address on the SLA website, at https://sla.ny.gov/public-license-query

Charges Must Be Invoiced Separately. A wholesaler that accepts business credit cards from retailers must clearly state the cash sale amount and the final payment amount (showing the added-in surcharges and fees) on an invoice provided to the retail licensee.

Retail Licensees Remain Free to Elect Other Payment Methods. Retailers cannot be required to pay by credit card. They are free to elect to use any permitted payment method.

SLA Will Determine the Amount of Fees and Surcharges. In order to maintain transparency and uniformity, the law requires the SLA to determine the amount of fees and surcharges that can be added, before the law takes effect in April.

For the full text of the law: https://nyassembly.gov/leg/?term=2019&bn=A06701