FOR IMMEDIATE RELEASE

March 10, 2022

CONTACT:

Kaye Dyja

212-818-0580

kdyja@council.nyc.gov

City Council Members Keith Powers, Marjorie Velázquez, Julie Menin, Carlina Rivera, and Bronx Borough President Vanessa Gibson, Introduce Legislation Capping Credit Card Minimums 

This legislation will support consumers by regulating outsized credit card minimums that put an unfair financial burden on customers

New York, NY – Today, New York City Council Members Keith Powers, Marjorie Velázquez, Julie Menin, Carlina Rivera, and Bronx Borough President Vanessa Gibson, introduce legislation to bolster consumer protections in credit card transactions across New York City. The law prohibits businesses from setting a minimum purchase requirement greater than $10 dollars for credit card transactions. 

“Too often, New Yorkers are faced with outsized credit card minimums, forcing them to either buy more items than they’re prepared for or take their business elsewhere—which generally is a larger retailer,” said City Council Majority Leader Keith Powers. “This important legislation eliminates that choice by ensuring consumers aren’t priced out of establishments, while still providing businesses with ample room to navigate transaction fees. It’s a win-win for consumers and businesses alike.”

This bill will strengthen existing federal law by providing New Yorkers with clear disclosure of credit card transaction maximums at cash terminals, a transparent, publicly-accessible reporting mechanism, and ultimately, a much-needed local enforcement structure to ensure businesses are in compliance. As our city only becomes more reliant on credit cards, this legislation is imperative as it greatly strengthens consumer protections and makes it easier to use credit cards across the city.

In 2010, the federal government passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This monumental package included a provision stating that businesses are allowed to set credit card minimums only up to $10 dollars, as long as the same standard applies to all credit cards accepted by that merchant. 

The legislation introduced today, however, will give the City the necessary power to enforce and execute this provision of the Dodd-Frank Act on a local level through the Department of Consumer and Workplace Protections (DCWP). It will also maximize transparency by requiring businesses to post notice of the prohibition on or near any sale terminal, and order the DCWP to create a form online so the public can report any businesses in violation. 

“Hefty credit card minimums prevent many people from patronizing businesses,” said Council Member Marjorie Velázquez. “We need to work with local merchants to not create unnecessary burdens that may stagnate New York City’s post pandemic recovery, but find practices that attract consumers. As the Chair of the Consumer and Worker Protection Committee, I want to advocate on behalf of consumers to make sure they aren’t forced to spend money they may not have, on products they do not want, to meet an unnecessary requirement. I’m glad to work with Democratic Majority Leader Keith Powers, Small Business Committee Chair Julie Menin, Council Member Carlina Rivera, and Bronx Borough President Vanessa Gibson to reinvigorate the New York City economy.” 

“As Former Commissioner of the Department of Consumer Affairs, we cannot let predatory practices affect New Yorkers,” said Council Member Julie Menin, Chair of the City Council’s Small Business Committee and member of the Committee on Consumer and Worker Protection. “It is an imperative principle to protect the rights of consumers in New York City. Businesses need to be transparent with their customers regarding credit card transactions. Setting a minimum purchase greater than $10 for goods or services can be a financial burden for those who are not interested in excess purchases and I thank Council Member Powers for introducing this legislation.”

“Currently, there are uneven standards in New York City about how much businesses can charge consumers who want to use credit or debit cards,” said Congressman Ritchie Torres (NY-15). “While federal law allows businesses to set a $10 purchase maximum to use cards, there is no reason why it should be more than that. With some businesses implementing minimums of $20 or $30, it negatively affects consumers who are just trying to buy basic necessities. This bill will set the standard for NYC businesses to follow across the board, making sure that consumers do not need to pay a higher cost than necessary. I applaud Councilman Keith Powers for reintroducing this bill, which I championed as a former Councilmember, and spotlighting this issue that affects millions of NYC consumers on a daily basis.” 

“COVID-19 has had a devastating impact on our residents and many are still attempting to recover financially,” said Bronx Borough President Vanessa L. Gibson. “Prohibiting businesses operating in NYC from setting a minimum dollar value greater than ten dollars for credit card purchases is an important step towards economic equity and justice in our city. “As we encourage our communities to put money back into our local economy, we want to ensure no one is punished for their socioeconomic status or for using a credit card. I thank Council Member Powers for his partnership on Intro. 611 and I look forward to pushing this important legislation forward.”

“A just and equitable pandemic recovery must prioritize the protection of both small businesses and consumers alike,” said Council Member Carlina Rivera. “This legislation does just that, by ensuring New Yorkers are well-informed of retailers’ credit card minimums for purchases while small business owners are still able to require minimums that adequately compensate for transaction fees. I am proud that we are continuing to support our local economies by making sure New Yorkers are able to shop close to home.”

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