The U.S. Supreme Court on Thursday said it would hear a case involving New York’s ban on credit card surcharges.
In September 2015, the 2nd U.S. Circuit Court of Appeals upheld the surcharge ban, in a ruling supported by the New York Credit Union Association (Expressions Hair Design v. Schneiderman). Merchants are appealing that decision to the Supreme Court, claiming the ban violates their right to free speech.
New York Credit Union Association President/CEO William J. Mellin issued the following statement on the Supreme Court’s decision to hear the case:
“We know from experience that when merchants are allowed to charge credit card surcharges, the result is more expensive products for everyone, not cheaper products for cash users. The decision by the Supreme Court to hear this case will provide nationwide clarity about the ability of legislatures to ensure consumers are treated fairly, regardless of which payment method they use. The Second Circuit correctly ruled that reasonable restrictions on merchant pricing don’t involve the First Amendment. We look forward to helping demonstrate why this ruling is not only consistent with the Constitution, but also why it benefits consumers and credit card issuers alike.”