Credit card surcharging is allowed in most US states, but it must follow both card network rules and state law. Network rules cap the surcharge amount,…
THE SHORT ANSWER
Credit card surcharging is allowed in most US states, but it must follow both card network rules and state law. Network rules cap the surcharge amount, require advance notice to the card networks and your processor, and require clear disclosure at the store entrance, at checkout, and on receipts. Surcharges cannot be applied to debit or prepaid cards, and some states restrict or regulate the practice, so check current rules before starting.
Updated · Waytrix Pay editorial team
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Visa, Mastercard, and other networks set their own surcharge rules. They limit the maximum surcharge, require that it not exceed your actual cost of acceptance, require registration or notice before you begin, and require disclosure to customers before the sale. The surcharge must appear as a separate line on the receipt.
Surcharges may only be applied to credit cards. Debit cards, including those run as credit, and prepaid cards cannot be surcharged. Your POS or terminal must be able to tell the difference.
A small number of states restrict surcharging or regulate how it is disclosed, and these laws change. Some industries and government payments have their own rules. Confirm current requirements for every state where you sell before launching a program.
A cash discount program posts the card price and gives a discount for cash, instead of adding a fee for credit. It has its own disclosure requirements. Either approach should be set up with your processor so pricing, signs, and receipts are compliant.
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