EBizCharge

JUNE 26, 2025

As of June 2025 surcharges are prohibited or restricted in the following: California Connecticut Maine Massachusetts Puerto Rico Laws are changing so be sure to verify local regulations before implementing a surcharge program. State-by-State Legality Some states have restrictions or bans on credit card surcharges.

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EBizCharge

JUNE 25, 2025

states, credit card surcharges are permitted, provided businesses follow applicable local laws and card network rules. states, credit card surcharges are permitted, provided businesses follow applicable local laws and card network rules. Each card brand—Visa, Mastercard, American Express, Discover—has its own surcharge guidelines.

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EBizCharge

JUNE 23, 2025

One option on the table is adding a credit card surcharge—a small extra fee to help cover your costs. But here’s the catch: surcharge rules are a patchwork of federal guidelines, state laws, and card network rules. That distinction is important because surcharges are more tightly regulated by both card networks and state laws.

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EBizCharge

JUNE 19, 2025

If you’re a business owner looking for ways to cut down on credit card processing costs, adding a surcharge might be one option worth considering. The goal is simple: to help offset the credit card processing fees you’re already paying to accept those cards. It’s meant to recoup costs, not generate revenue.

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EBizCharge

JUNE 24, 2025

Understanding those differences can help you avoid compliance headaches, improve the customer experience, and recover more of what you’re losing to payment processing costs. However, because adding a surcharge for credit card payments is regulated by card networks and by local laws, it’s essential to know the rules.

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EBizCharge

JUNE 24, 2025

They’re treated differently under both state laws and card network rules. Others allow it but require specific steps like formal notification, prescribed signage, or capped surcharge amounts. In a few states, laws are in flux or under legal challenge, making the rules a bit harder to pin down. Is Surcharging Legal in Your State?

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EBizCharge

MAY 1, 2025

If the dispute is resolved in favor of the customer, the merchant is charged a fee to cover the processing cost of reversing the transaction. This includes clearly communicating the surcharge to customers before purchase and limiting surcharging amounts to the legal amount, which is capped at 4% in the U.S.

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EBizCharge

JULY 3, 2025

The major card networks—like Visa and Mastercard—have their own guidelines, such as requiring upfront customer notifications and limiting the surcharge amount (usually capped at 3%). These steps help ensure the process is both transparent and legal. This includes customer notifications and fee caps.

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Credit Cards Processing Costs Caps Legal 52

EBizCharge

JUNE 23, 2025

The goal is to cover the processing fees that come with accepting those payments. Card networks typically cap it at 4%, and you can’t apply it to debit or cash payments. Handled properly, surcharging can be a smart, compliant way to manage processing costs. It won’t warn you if you exceed the card brand’s 4% cap either.

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Credit Cards Debit Card ACH B2B 52

EBizCharge

MAY 5, 2025

states, there are a few states where this program is prohibited merchants must verify state laws before implementing them. Additionally, credit card networks typically cap surcharge amounts around 3-4% of the transaction total, and merchants must notify the card brands prior to adding a surcharge.

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Stax

JANUARY 24, 2024

However, the idea of applying a credit card surcharge to offset the processing cost of credit cards has always been a hotly debated topic. Simply put, a surcharge amount is an extra fee that some merchants choose to levy on customers to cover the costs of processing credit card payments.

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Credit Cards Laws Caps Legal 88

Stax

JANUARY 24, 2024

However, the idea of applying a credit card surcharge to offset the processing cost of credit cards has always been a hotly debated topic. Simply put, a surcharge amount is an extra fee that some merchants choose to levy on customers to cover the costs of processing credit card payments.

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Credit Cards Laws Caps Legal 88

Stax

DECEMBER 20, 2023

This article explores the legal landscape surrounding surcharges, shedding light on the intricacies of state and federal laws and strategies for small businesses to manage processing costs. TL;DR Card brands such as Visa and MasterCard along with state and federal laws prohibit debit card surcharging.

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Debit Card Legal Credit Cards Processing Costs 88

Stax

AUGUST 1, 2024

With it, merchants can transfer the processing costs to customers who choose to make credit card payments. However, card brand rules and state and federal laws have been established to prevent merchants from abusing this privilege. Earlier, the surcharge cap used to be 4%. are the most important ones to be mindful of.

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Rules Credit Cards Caps Processors 88

Stax

SEPTEMBER 26, 2024

It requires stringent adherence to regulatory guidelines and card network rules, from surcharge caps to disclosure requirements. Learn how your business can capitalize on these transaction fees while staying on the right side of the law. But they advise businesses to check state laws for stricter limits or an outright surcharging ban.

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Credit Cards Caps Best Practices Laws 88

Stax

FEBRUARY 28, 2024

Customers who want to use their credit card have to pay an additional fee covering the processing costs. For anyone new to the term, surcharging is a payment processing option allowing merchants to pass on credit card fees. Customers who want to use their credit card have to pay an additional fee covering the processing costs.

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Credit Cards Debit Card Legal Laws 88

Stax

DECEMBER 13, 2023

However, you must keep in mind several federal and state laws as well as credit card network guidelines (e.g. TL;DR Credit card processing fees can add up quickly and eat into a business’s bottom line. Fortunately, in states where surcharging is legal, you can recoup these processing costs by transferring them to the cardholder.

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Credit Cards Debit Card Laws Rules 88

Stax

DECEMBER 6, 2023

This additional fee is intended to cover the costs associated with processing credit card payments. Businesses that choose to add surcharges can either charge a fixed flat fee or a percentage of the transaction amount with a cap on the total. There may also be caps or regulations on these fees depending on local laws.

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Stax

NOVEMBER 8, 2023

Your business still has to incur all processing costs when a customer pays by debit card. The latter is simply another solution that some merchants use to lower their card processing costs. In this method, a certain discount (equivalent to the cost of card processing) is applied at checkout if a customer pays by cash.

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Process Credit Cards Debit Card Processors 88

Stax

DECEMBER 20, 2023

Interchange fees are simply a cost of doing business. Understanding the concept of interchange fees is crucial for businesses looking to optimize their payment processing costs. At the end of the day, how much you’re paying for credit card processing relies on your payment solutions provider. How Much Do You Pay?

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Stax

APRIL 4, 2024

The surcharge fee is paid by the customer and helps offset the processing cost for that particular transaction. Businesses need to be compliant with these laws and also with the guidelines issued by card companies. The surcharge fee is paid by the customer and helps offset the processing cost for that particular transaction.

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Credit Cards Legal Laws Best Practices 68

EBizCharge

JULY 25, 2024

These fees are intended to cover the cost associated with credit card processing fees, which merchants pay to credit card companies such as Visa, MasterCard, or American Express for each transaction. Traditionally, businesses absorb credit card processing costs, but with surcharging, they pass the fees directly to consumers.

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Best Practices Credit Cards Compliance Debit Card 52

EBizCharge

JUNE 28, 2024

For example, Colorado, Connecticut, Massachusetts, and others have laws prohibiting surcharges. Determining the legality of charging credit card fees requires understanding various individual state laws , card network regulations, and the type of fee being charged. That said, not all states allow this practice.

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Credit Cards Legal Debit Card Best Practices 52