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type of encryption that should be used, how often you rotate the SSID [service tional right to inform customers of
set identification]… Same thing holds true for point to point encryption." the cost of electronic payment accep-
tance.
Rosenberg acknowledged that the council does not have an easy task. "Don't get
me wrong," he said. "They have a really hard job when you have a proscriptive The law, which is contained in section
standard with over 280 controls, trying to apply to every single merchant, 518 of the New York General Business
no matter how they process payments, and then also baking in the emerging Law code, forbids merchants from
technology and threats." adding a percentage above the retail
price of goods and services to offset
However, Rosenberg said threats to mobile payments are looming. He cited the cost of interchange. The law
Trustwave research that tracked a 400 percent increase in 2012 in the amount of states, "Any seller who violates the
mobile malware infections. While payment volume conducted via smartphones provisions of this section shall be
and tablet devices is low in relation to total payment volume, fraudsters are guilty of a misdemeanor punishable
testing the mobile infrastructure for weaknesses. by a fine not to exceed five hundred
dollars or a term of imprisonment up
New York's no-surcharge to one year, or both."

law shelved, for now In his preliminary injunction order,
Judge Rakoff said the law trumped
even the looking-glass world depicted
in the children's classic, "Alice in
federal judge in a New York district court ruled in favor of five Wonderland." He said retailers can't
retailers seeking the right to surcharge customers who use credit surcharge legally but can legally offer
cards at checkout. The Oct. 3, 2013, preliminary injunction sus- discounts to customers who use cash
A pends the N.Y. statute that bans surcharging. In the Manhattan instead of credit to pay for purchases.
court, U.S. District Judge Jed Rakoff said the law violated retailers' constitu- "[T]his virtually incomprehensible
distinction between what a vendor
can and cannot tell its customers
offends the First Amendment and
renders section 518 unconstitutional,"
he wrote.

Payment attorney Paul Rianda
agreed, stating, "I also cannot
reconcile how one or the other is
any different." He also called the
Network that "this is really a business issue
Processing potential penalties excessive, given
and not what one would generally
The everywhereProcessingNetwork SM
see as something more of an ethical
POS eProcessing Network
or moral nature."
Accounting Enabling Merchant Processing Through
123 To surcharge or not
Payment Gateway Innovation and Support
Customer
Data The lawsuit was brought by five
Manager No matter what type of payment you want
to accept or how you choose to transact, N.Y.-based merchants, including a
Bill Pay
eProcessing Network is the payment hair salon, an ice cream parlor and a
Smart gateway for you. Our PCI-compliant solutions liquor store, against the office of the
Phones
& services enable you to process payments New York Attorney General, Eric T.
Recurring anywhere, anytime, helping your merchants Schneiderman. In June 2013, when
meet the daily demands required to manage the lawsuit was filed, the plaintiffs'
Tablets their business efectively. ePN is here to legal council Gupta Beck PLLC said
partner with you and help you establish N.Y. merchants are allowed to charge
Websites strategies for the success of you and your different prices to consumers who
merchants.
Inventory pay with credit versus those who
(800) 296-4810 pay with cash, but that the "price
In-Store
Computers eProcessingNetwork.com difference must be described as a
'discount' for cash, not a 'surcharge'
eProcessing Network Cloud-Enabling Payments Everywhere SM for credit – even though they are
mathematically identical."
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