Credit Card Surcharge Laws by State Check

Passing card processing fees on to customers is legal in most of the US, but the rules depend on the state you sell in, the type of card and how you tell customers. Connecticut (Conn. Gen. Stat. §42-133ff), Massachusetts (Mass. Gen. Laws ch. 140D §28A) and Puerto Rico ban credit card surcharges outright. New York’s General Business Law §518 allows them only if the posted price shows the total cost including the surcharge, and the surcharge cannot exceed what the card company charges you. California’s Honest Pricing Law (Civil Code §1770(a)(29), in force since July 2024) treats advertising a price that leaves out mandatory fees as a deceptive practice. Other states set their own caps or disclosure duties. At federal level, Dodd-Frank (15 U.S.C. §1693o-2(b)(3)) protects your right to offer cash discounts, and the FTC’s Rule on Unfair or Deceptive Fees (16 CFR Part 464) requires all-in pricing for live-event tickets and short-term lodging.

Card network rules add another layer. Visa and Mastercard cap credit card surcharges at 3% (or your actual cost if lower), require advance notice to your processor and clear notice to customers at the point of entry, at the point of sale and on the receipt, and prohibit surcharging debit and prepaid cards, even when they are run as credit. Getting this wrong can lead to state consumer protection claims, refunds, fines from your processor or losing the ability to take card payments. This check shows whether your surcharge, convenience fee or cash discount setup is likely to hold up where you trade.

Use this free tool to check whether your credit card surcharge, convenience fee or cash discount complies with US state law and Visa and Mastercard rules, and what to change on your signage, checkout and receipts.