WASHINGTON–The U.S. Supreme Court has agreed to hear an appeal of a case involving a ban on credit card surcharges in the state of New York.
The appeal follows a September 2015 ruling by the 2nd U.S. Circuit Court of Appeals in the case Expressions Hair Design v. Schneiderman that upheld the surcharge ban.
The ban has the support of credit unions.
Merchants are the plaintiffs in the action and have appealed to the nation’s highest court arguing that the ban violates their right to free speech.
“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,” said New York Credit Union Association President/CEO William J. Mellin following the Supreme Court decision. “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.”