Credit card surcharges: the rules before you add one

In most US states you can add a surcharge to credit card payments, but only on credit cards, only up to your own cost of acceptance, and only with notice and clear signs. A few states ban it outright, and the card network rules are in the middle of changing.

This guide sets out the rules we checked on Visa's and Mastercard's own documents and in three state statutes. It is general information, not legal advice. Rules differ by state and change, so ask a lawyer or your card processor before you start charging a fee.

What counts as a surcharge

Visa defines a surcharge as an extra fee a merchant adds to the bill because the customer pays a certain way.^[1] A 3% fee added at checkout for paying by credit card is a surcharge. So is a flat $2 card fee.

A cash discount is different. Visa allows a discount for paying another way, but only if your prices show the card price, or the card and cash prices side by side. If the card total is reached by adding a fee at the end, Visa says it may be treated as a surcharge and fall under the surcharge rules.^[1]

Visa's rules

Visa's merchant Q&A, last revised in February 2024, lists what a US merchant must do before and while surcharging.^[1]

• Notify your acquirer at least 30 days before you start. The acquirer is the bank or processor that handles your card payments.
• Surcharge credit cards only. Visa debit and prepaid cards cannot be surcharged, even when the customer chooses "credit" on the terminal.
• Cap the fee. It cannot exceed your merchant discount rate for that card or 3%, whichever is lower.
• Tell customers three times. Disclose the fee at the point of entry, at the point of sale, and on every receipt, where the surcharge must be shown as its own line.

Visa's one-page summary for merchants repeats the 30-day notice, the credit-only rule, and the 3% ceiling.^[2] Visa also says it checks compliance through consumer complaints and yearly mystery shopping, and that the acquirer of a merchant found surcharging improperly may be fined $1,000 straight away.^[1]

Mastercard's rules

Mastercard's published US surcharge rule, rule 5.11.2, covers Mastercard credit card transactions. It caps the surcharge at the lower of your own cost of accepting Mastercard credit cards and a maximum cap that Mastercard publishes from time to time.^[3]

The rule asks for a clear notice at the store entrance, or on the first page of a website that mentions card brands. At the point of sale, the notice must give the surcharge percentage, say the merchant is imposing it, and say it is not greater than your cost of acceptance. The receipt must show the surcharge amount.^[3]

It also requires at least 30 days' written notice to both Mastercard and your acquirer before you start.^[3] The version we could open is dated 2019. We could not open Mastercard's current US surcharge page when we checked, so confirm the current cap and notice steps with your processor.

State laws

Card network rules do not override state law. Visa's Q&A says each location must follow the law of the state it is in, so a business with sites in two states may be able to surcharge in one and not the other.^[1]

Visa's Q&A also says that, as of February 2024, Maine, Oklahoma, and Puerto Rico prohibit surcharging, and Colorado, Minnesota, and New Jersey have their own requirements. Visa adds that its summary may contain errors and is not legal advice.^[1] We did not open those statutes, so treat that list as a starting point.

The rules are changing

In June 2026 a federal court gave preliminary approval to a settlement between Visa, Mastercard, and US merchants. Visa says merchants will have more options to surcharge under it, and that it is still subject to final approval by the court.^[7]

Until the court gives final approval and the networks publish new rules, the current rules above still apply. If you are reading this later, check Visa's and Mastercard's merchant pages for what changed.

Before you add a surcharge

1. Check your state. Read the statute for each state you take payments in, or ask a lawyer.
2. Know your real cost. Find your effective rate for credit cards on your processor statement. Your fee cannot be higher. Our guide to credit card processing fees explains how to read it.
3. Give notice. Tell your acquirer at least 30 days ahead, and Mastercard too under its published rule.
4. Exclude debit and prepaid cards. Ask your processor whether it can tell them apart at checkout.
5. Put up the signs. At the door, at the counter, on your website checkout, and on every receipt and invoice.
6. Think about your customers. A surcharge on a $90 haircut feels different from one on a $9,000 roof. Some owners build the cost into prices instead.

How it works in Pinn.Media CRM

Our payments area includes an option to pass on card fees, adding a card processing fee to the customer's payment instead of absorbing it. You choose whether to use it and where it applies. It does not check your state's law or your network notices for you, so do those steps first.

Invoices, payment links, and text-to-pay all run from the same account, so the fee and your terms show the same way wherever a customer pays. See how a home services business or a salon takes payment day to day.

Want to talk through card fees before you change anything? Book a walkthrough and we will show you how payments are set up, or compare plans.