New York 2025-2026 Regular Session

New York Senate Bill S09656

Introduced
3/31/26  

Caption

Prohibits the imposition of fees or surcharges for any service rendered through a banking organization relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

Impact

The enactment of S09656 will significantly amend existing banking regulations in New York. By establishing a statutory framework that prohibits fees on EBT services, the bill aims to alleviate financial burdens on recipients of public assistance. This change is expected to reflect positively on the state's commitment to supporting low-income families and individuals, enhancing their ability to utilize the services afforded to them without unexpected financial penalties. Moreover, it aligns with broader state policies aimed at increasing access to essential services for economically disadvantaged groups.

Summary

Bill S09656 aims to enhance consumer protections for individuals utilizing electronic benefit transfer (EBT) services within New York State. It specifically prohibits any banking organization from imposing fees or surcharges on consumers related to the use of EBT cards that provide access to public assistance or benefits. The bill is designed to safeguard vulnerable populations who rely on these services for essential needs such as food and healthcare. By preventing additional charges on EBT transactions, the legislation seeks to ensure that beneficiaries can fully access their entitled funds without incurring extra costs.

Contention

Despite the bill's intent to provide benefits to low-income consumers, there may be points of contention surrounding its implementation. Critics may raise concerns about potential pushback from banking institutions, which might argue that prohibiting fees could affect their business models or financial sustainability. Additionally, there could be concerns regarding how this law might interact with federal regulations governing EBT systems, potentially complicating compliance for both state agencies and financial institutions. It remains to be seen how lawmakers will address these concerns while maintaining the bill's core objectives.

Companion Bills

NY A03304

Same As Prohibits the imposition of fees or surcharges for any service rendered through a banking organization relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

Previously Filed As

NY A03304

Prohibits the imposition of fees or surcharges for any service rendered through a banking organization relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

NY S08225

Prohibits fees for any service rendered through a banking organization relating to the use of an electronic benefit transfer card issued by the state or certain departments or agencies thereof.

NY A08938

Requires that any electronic benefit transfer services for special supplemental nutrition program for women, infants and children (WIC) benefits shall ensure that two electronic benefit transfer credit or debit cards are issued for use by any recipient household where such additional household member is either a parent, guardian or caretaker of the covered infant or a spouse, domestic partner or parent of the covered mother.

NY S08584

Requires that any electronic benefit transfer services for special supplemental nutrition program for women, infants and children (WIC) benefits shall ensure that two electronic benefit transfer credit or debit cards are issued for use by any recipient household where such additional household member is either a parent, guardian or caretaker of the covered infant or a spouse, domestic partner or parent of the covered mother.

NY A09358

Directs the commissioner of the office of temporary and disability assistance to develop and implement a program to replace all magnetic-strip electronic benefit transfer cards issued by or on behalf of the state with chip-enabled smart cards; provides for reimbursement of benefits.

NY SB1183

Relating to electronic benefits transfer cards used by or for recipients of benefits under certain assistance programs.

NY S10055

Prohibits certain surcharges on certain credit or debit card transactions in the city of New York; provides that no agency or department of the city of New York, or any tribunal located therein, shall be authorized to impose a surcharge on a holder who elects to use a credit or debit card in lieu of payment by cash, check, or similar means to pay any fine, civil penalty, or fee owed.

NY A11264

Provides that every banking institution operating in the state of New York shall offer at least one no-fee basic banking account that charges no monthly maintenance or service fees, requires no minimum balance, charges no fees based on account inactivity, and provides certain essential services including deposits and withdrawals, debit card access, and electronic payments and transfers.

NY A04017

Excludes the amount of state and local taxes and fees from the amount on which an interchange fee is charged for that electronic payment transaction by a credit or debit card network; prohibits a payment card network from altering or manipulating the computation and imposition of interchange fees.

NY S05587

Excludes the amount of state and local taxes and fees from the amount on which an interchange fee is charged for that electronic payment transaction by a credit or debit card network; prohibits a payment card network from altering or manipulating the computation and imposition of interchange fees.

Similar Bills

NJ A4441

Requires DHS to distribute contactless EBT cards to SNAP recipients by January 31, 2027.

NJ S4049

Requires DHS to distribute contactless EBT cards to SNAP recipients by January 31, 2027.

CA SB591

An act to amend Sections 19011 and Section 19011.

NJ A4829

Authorizes local governments to impose convenience fees for accepting electronic payments.

CA AB1951

Civil actions: filing fees: refunds.

NJ S2967

Requires State to adopt practices to reduce SNAP benefits theft and to replace stolen SNAP benefits under certain circumstances; upgrades criminal penalties for SNAP benefits theft; makes appropriation.

NJ S479

Requires local unit to accept electronic payment of construction code fees.

NJ A3953

Requires local unit to accept electronic payment of construction code fees.