Credit Card Surcharge Laws by State
Where surcharging is allowed, where it's banned, what each state caps it at, and the statute behind every answer — checked against primary sources and dated, because these laws keep changing.
The 30-second answer
Most states permit credit card surcharging as long as the fee isclearly disclosed before payment and stays within the card-network caps.Connecticut, Maine, and Massachusetts still prohibit it by statute. A handful of states — Colorado, Oklahoma, Minnesota, New Jersey, Georgia, New York — permit it with their own caps or pricing rules, and in a few states (Texas, California, Florida) an old ban sits on the books that courts have refused to enforce.
On top of state law sit the card-network rules, which apply everywhere: surcharge credit cards only (never debit or prepaid), keep it at or below your actual cost with a3% ceiling under Visa's rules, notify your acquirer 30 days ahead, and disclose at the door, at the register, and on the receipt. The full 50-state table is below.
Before State Law: The Card-Network Rules
State law is only half the picture. Every merchant who surcharges also agreed to Visa and Mastercard's rules, and those apply in all 50 states — including the ones with no surcharge statute at all. Four rules do most of the work:
Credit cards only
Debit and prepaid cards can never be surcharged — even when the customer selects "credit" on the terminal with a debit card. This is a network rule with no state exceptions.
Capped at cost, max 3%
Visa caps the surcharge at your merchant discount rate or 3%, whichever is lower — reduced from 4% effective April 15, 2023. Mastercard caps it at your cost of acceptance, never above 4%. A surcharge was never allowed to be a profit center.
30 days' notice to your acquirer
The networks require written notice to your acquiring processor at least 30 days before you begin surcharging. Your processor handles the setup — which is also your chance to confirm the cap is configured for your state.
Disclose at entry, register, and receipt
Signage at the point of entry and point of sale, and the surcharge itemized as its own line on every receipt. Need compliant signage? Our free surcharge sign generator builds a printable sign in about a minute.
Surcharge Rules, State by State
Grouped by status. Every row's authority is a statute, court decision, or AG guidance listed in the Sources section, observed 2026-09-03. The card-network rules above apply in every state on top of whatever the state adds.
Prohibited by state statute (3 states)
| State | Cap | What the rule says | Authority |
|---|---|---|---|
| Connecticut | N/A — banned | No surcharge on any transaction; discounts for cash, check, or debit are expressly allowed. Amended as recently as 2023–24 and still enforced. | Conn. Gen. Stat. § 42-133ff |
| Maine | N/A — banned | Prohibits surcharges on both credit and debit cards. Narrow exception for government entities collecting taxes, fines, and fees at actual cost. | 9-A M.R.S. § 8-509 |
| Massachusetts | N/A — banned | Sellers may not surcharge credit card users; cash discounts are allowed. State guidance has permitted a true at-cost third-party convenience fee in limited cases. | M.G.L. c. 140D, § 28A |
Ban on the books, held unconstitutional by courts (3 states)
| State | Cap | What the rule says | Authority |
|---|---|---|---|
| California | Network cap (Visa 3%) | No-surcharge statute held unconstitutional as applied (First Amendment). Disclosed, cost-based surcharges are common practice; the statute was never repealed. | Cal. Civ. Code § 1748.1; Italian Colors Rest. v. Becerra, 878 F.3d 1165 (9th Cir. 2018) |
| Florida | Network cap (Visa 3%) | No-surcharge statute struck down on First Amendment grounds by the Eleventh Circuit. Disclosed surcharges are standard practice today. | Fla. Stat. § 501.0117; Dana’s R.R. Supply v. Att’y Gen., No. 14-14426 (11th Cir. 2015) |
| Texas | Network cap (Visa 3%) | Statute held unconstitutional as applied; the AG opinion says it remains partially enforceable. Cost-capped, clearly disclosed surcharges stand on the strongest footing. | Tex. Bus. & Com. Code § 604A.0021; Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018); Tex. AG Op. KP-0257 (2019) |
Permitted with state-specific conditions (9 states)
| State | Cap | Conditions | Authority |
|---|---|---|---|
| Colorado | 2% or actual cost | Capped at 2% of the transaction or the merchant’s actual processing cost. Notice required on premises or before online checkout. No surcharge on debit, cash, check, or gift cards. Effective July 1, 2022. | C.R.S. § 5-2-212 (SB 21-091) |
| Georgia | Actual cost of acceptance | Surcharge may not exceed the cost of acceptance; a fee-free payment alternative must be offered; disclosure at point of entry and point of sale. Enforced by the AG under the Fair Business Practices Act. | Ga. HB 299; Georgia AG Consumer Protection Division guidance |
| Kansas | Network cap (Visa 3%) | The old ban was held unconstitutional in 2021, and the legislature formally lifted it effective Jan 1, 2025 — surcharges allowed with clear, conspicuous disclosure before the transaction. | K.S.A. 16a-2-403; CardX, LLC v. Schmidt, 522 F. Supp. 3d 929 (D. Kan. 2021); HB 2247 (2024) |
| Minnesota | 5% (state statute) | Capped at 5% with oral notice plus posted signage in person, and conspicuous notice online or by phone. Since Jan 1, 2025, mandatory fees must be baked into the advertised price under the state’s fee-transparency law. | Minn. Stat. § 325G.051; Minn. Stat. § 325D.44 (2024 amendments) |
| Nevada | Reported: actual cost | Industry surveys report a cost-of-acceptance limit with disclosure required, but we could not tie that to a specific general-merchant statute — check with your processor before surcharging in Nevada. | Secondary surveys only — confirm with your processor |
| New Jersey | Actual cost of processing | Surcharge may not exceed the merchant’s actual cost to process the card payment, with clear disclosure before the sale. | N.J. P.L. 2023, c.146 (N.J.S.A. 56:8-156.1 to -156.2) |
| New York | What the card costs you | Surcharging is legal, but you must post the highest total price inclusive of the surcharge — no "+3% at the register" math. The surcharge cannot exceed what the card company charges you. Up to $500 per violation. Effective Feb 11, 2024. | N.Y. Gen. Bus. Law § 518 (as amended 2023) |
| Oklahoma | 2% or actual cost | The long-standing ban was repealed effective Nov 1, 2025. Surcharges now allowed, capped at the lesser of 2% or actual processing cost, with notices at the entrance, point of sale, and on the website homepage and checkout page. | SB 677 (2025), repealing 14A O.S. § 2-417 |
| Virginia | Network cap (Visa 3%) | No surcharge ban, but since July 1, 2025 the Consumer Protection Act requires the advertised price to include mandatory fees. An avoidable card surcharge (cash or check accepted) needs clear disclosure before payment. | Va. SB 1212 / HB 2515 (2025), amending the Virginia Consumer Protection Act |
Permitted — no state surcharge statute (35 states)
No state surcharge statute — card-network rules apply (credit only, Visa cap 3%, disclosure at entry, point of sale, and on the receipt). Confirmed against Visa's own list of restriction states plus two current 50-state legal surveys — see Sources.
| State | Status | Notes |
|---|---|---|
| Alabama | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Alaska | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Arizona | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Arkansas | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Delaware | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Hawaii | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Idaho | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Illinois | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Indiana | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Iowa | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Kentucky | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Louisiana | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Maryland | Permitted | Bills to cap surcharges at merchant cost were introduced in 2024 but did not pass. |
| Michigan | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Mississippi | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Missouri | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Montana | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Nebraska | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| New Hampshire | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| New Mexico | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| North Carolina | Permitted | HB 13 (introduced 2025) proposes new restrictions — not law as of this page’s date. |
| North Dakota | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Ohio | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Oregon | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Pennsylvania | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Rhode Island | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| South Carolina | Permitted | A 2013 bill to ban surcharging died in committee; no statute was ever enacted. |
| South Dakota | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Tennessee | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Utah | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Vermont | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Washington | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| West Virginia | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Wisconsin | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
| Wyoming | Permitted | Card-network rules apply — credit only, at cost up to 3%, disclosed. |
Recently changed — worth double-checking
New York began requiring the posted price to include the surcharge — the total-price rule replaced the old contested ban.
Kansas formally lifted its surcharge ban (HB 2247), four years after a federal court held the old statute unconstitutional.
Minnesota’s fee-transparency amendments took effect: mandatory fees belong in the advertised price, and the 5% surcharge cap continues.
Virginia’s Consumer Protection Act amendments took effect: advertised prices must include mandatory fees or surcharges.
Oklahoma’s ban ended (SB 677) — surcharges allowed, capped at the lesser of 2% or actual cost, with posted notices.
The States Merchants Ask About Most
Deeper notes on the states that generate the most surcharge-law questions — what the statute actually says, what changed, and what to watch.
Colorado
Colorado banned surcharging for over two decades, then reversed course with Senate Bill 21-091, effective July 1, 2022. Under C.R.S. § 5-2-212, a merchant may surcharge credit and charge card transactions up to the lesser of 2% of the transaction or the actual merchant discount fee paid to the processor.
That 2% cap is stricter than Visa’s 3% network cap, and the stricter number always wins — a Colorado merchant running a standard 3% surcharge program is out of compliance with state law even though the card networks would allow it. Notice of the surcharge must be displayed on the premises, or shown to online customers before checkout, and the surcharge cannot be applied to debit cards, cash, checks, or gift card redemptions.
California
California is the classic "statute on the books, courts said otherwise" state. Civil Code § 1748.1 prohibits retailers from surcharging credit card payments while allowing cash discounts — but in Italian Colors Restaurant v. Becerra, 878 F.3d 1165 (9th Cir. 2018), the Ninth Circuit held the statute unconstitutional as applied, finding it an impermissible restriction on non-misleading commercial speech.
Because the ruling was as-applied rather than a repeal, the statute still exists, and the safest posture in California is the one the courts blessed: a surcharge that reflects your actual cost of acceptance, disclosed clearly before the customer pays. California’s broader honest-pricing rules also reward showing the full price early. If any of that feels uncomfortable, a cash discount or dual pricing structure sidesteps the statute entirely — see our comparison of the models below.
Oklahoma
Oklahoma was one of the last true holdout states — 14A O.S. § 2-417 barred surcharges on both credit and debit cards for decades. That ended when the legislature passed SB 677 in 2025, repealing the ban effective November 1, 2025.
The replacement is permission with guardrails: the surcharge is capped at the lesser of 2% of the transaction or your actual processing cost, and notice is required at the business entrance, at the point of sale, and — for online sellers — on both the website homepage and the checkout page. Like Colorado, Oklahoma’s 2% state cap beats the networks’ 3% ceiling, so program settings matter. If your processor set you up before November 2025, confirm the configuration reflects the new law rather than the old ban.
Pennsylvania
Pennsylvania has no state statute restricting credit card surcharges. That makes the card-network layer the operative rulebook: credit cards only (never debit or prepaid), a cap at your cost of acceptance up to Visa’s 3%, notice to your acquirer 30 days before you start, and disclosure at the entrance, at the point of sale, and on every receipt.
No state statute does not mean no rules — Pennsylvania merchants still answer to the networks and to general consumer-protection law, which frowns on fees that appear only at the end of a transaction. Post the surcharge clearly before the customer commits and itemize it on the receipt.
North Carolina
North Carolina currently has no state statute restricting credit card surcharges, so the card-network rules govern: disclosed, credit-only, capped at cost up to 3%.
One thing to watch: House Bill 13, introduced in the 2025 session, proposes new restrictions on surcharging in the state. As of this page’s observed date it has not become law, but North Carolina merchants running surcharge programs should keep an eye on it — and this is exactly the kind of change your processor should be tracking for you.
Virginia
Virginia does not ban credit card surcharges, but 2025 changed the disclosure math. SB 1212 and HB 2515 amended the Virginia Consumer Protection Act, effective July 1, 2025, to require that the total advertised price of goods and services include all mandatory fees or surcharges.
The key word is mandatory: the law defines it as fees that must be paid to purchase the advertised item. A card surcharge the customer can avoid by paying cash or check is generally not a mandatory fee — but it still needs clear, conspicuous disclosure before payment, and violations of the VCPA carry civil penalties of up to $2,500 per violation. If everything you sell effectively requires a card, treat the fee as mandatory and price accordingly.
Wisconsin
Wisconsin has no state statute restricting credit card surcharges. Merchants follow the card-network rules: credit cards only, capped at the cost of acceptance up to Visa’s 3%, 30 days’ notice to the acquirer, and posted disclosure at the entry, the register, and on the receipt.
As in the other no-statute states, the practical compliance risk in Wisconsin is not a surcharge law — it’s sloppy disclosure. A surcharge that surprises the customer at the terminal invites chargebacks and complaints even where it is perfectly legal.
Maryland
Maryland has no statute restricting credit card surcharges, so the network rules are the operative limit. Legislation introduced in 2024 would have capped surcharges at the merchant’s actual cost, but it did not pass.
Until that changes, Maryland merchants can run a standard disclosed surcharge program: credit only, at or below cost, capped at 3%, posted at the door and the point of sale, itemized on the receipt.
South Carolina
South Carolina has never enacted a surcharge statute. A 2013 bill (H. 3477) that would have banned the practice with criminal penalties died in committee, and nothing has replaced it — so surcharging is governed entirely by the card-network rules.
Some older articles cite a South Carolina "surcharge law" at § 39-1-100; that language appeared only in the failed 2013 bill and was never enacted. If a processor or consultant quotes you a South Carolina statute, ask for the cite — there isn’t one.
Surcharge, Cash Discount, or Dual Pricing?
A surcharge is only one of three ways to offset card costs, and in the prohibition states it's off the table entirely — while discounts for paying by cash or check remain expressly allowed even there. The three models differ in what the posted price means and how the math is shown, and choosing the wrong one for your state is the most common compliance mistake we see. Our cash discount vs. surcharge guide breaks down all three side by side.
If you'd rather have the program set up correctly than research it, that's the job of our dual pricing and cash discount programs — configured for your state's cap and disclosure rules, with the signage and receipt formatting handled. And if a term on this page is unfamiliar, our merchant services glossary defines it in plain English.
Surcharge Law Questions, Answered
Is it legal to charge customers a credit card fee in my state?+
In most states, yes — a disclosed credit card surcharge is permitted, subject to the card-network rules. The clear exceptions are Connecticut, Maine, and Massachusetts, where state statutes still prohibit surcharging. A second group (Colorado, Oklahoma, Minnesota, New Jersey, Georgia, New York) permits surcharging but adds its own cap or disclosure conditions on top of the network rules. Find your state in the table above, then confirm the current status with your processor before you flip the switch.
What is the maximum credit card surcharge allowed?+
Under Visa’s rules, the surcharge may not exceed your actual cost of acceptance (your merchant discount rate) or 3%, whichever is lower — a cap Visa reduced from 4% effective April 15, 2023. Mastercard likewise caps the surcharge at your cost of acceptance, with an absolute ceiling of 4%. Several states then cut lower: Colorado and Oklahoma cap at 2% or actual cost, and New Jersey and Georgia cap at actual cost. You always follow the strictest rule that applies to you.
Can I add a surcharge to debit card payments?+
No. Card-network rules prohibit surcharging debit and prepaid cards everywhere in the US — even when the customer runs the debit card as "credit" at the terminal. This is a network rule, not a state one, so it applies in every state. Maine’s statute goes further and bans debit surcharges at the state level too.
Do I have to notify anyone before I start surcharging?+
Yes. The card networks require you to notify your acquirer (your processor) at least 30 days before you begin surcharging. You also need consumer-facing disclosure: notice at the point of entry and the point of sale, and the surcharge itemized as a line on every receipt. Our free surcharge sign generator produces compliant signage in about a minute.
What if my state’s cap is lower than Visa’s 3%?+
The stricter rule wins. A Colorado or Oklahoma merchant is limited to 2% even though the networks would allow 3%; a New Jersey merchant is limited to actual processing cost. Surcharge programs are configured at the processor level, so make sure yours is set to the right cap for each state you operate in — multi-state businesses cannot run one flat percentage everywhere.
Is a cash discount or dual pricing legal where surcharging is banned?+
The prohibition states draw the same line the card networks do: a surcharge adds to the posted price, while a discount comes off it. Connecticut, Maine, and Massachusetts all expressly permit discounts for paying by cash or check even as they ban surcharges. That said, a "cash discount" program that actually adds a fee at the register is a surcharge wearing a costume, and regulators treat it that way. Our cash discount vs. surcharge guide walks through how the models differ and what the posted price means in each.
Where Every Claim on This Page Comes From
All sources observed 2026-09-03. Statutes and court decisions are the authority; the surveys listed last were used only to confirm the absence of statutes in the no-statute states. This page is general information, not legal advice — laws change, so confirm with your processor and counsel. Spot something outdated? Email us and we'll fix it.
- Visa, "U.S. Merchant Surcharge Q&A" and "Surcharging Credit Cards — Q&A for Merchants" (usa.visa.com) — Cap at the lesser of the merchant discount rate or 3%; no surcharging debit or prepaid; 30-day acquirer notice; entry, point-of-sale, and receipt disclosure. Observed 2026-09-03.
- ArentFox Schiff, "Visa Reduces Its Merchant Surcharge Cap to 3%" (afslaw.com) — Effective date of Visa’s 3% cap: April 15, 2023 (reduced from 4%). Observed 2026-09-03.
- Mastercard, "U.S. Merchant Class Settlement — Surcharge FAQ" (mastercard.com) — Mastercard surcharge limited to cost of acceptance, absolute maximum 4%; 30-day acquirer notice; disclosure requirements. Observed 2026-09-03.
- Conn. Gen. Stat. § 42-133ff (justia.com, 2024 edition) — Connecticut surcharge prohibition; cash/check/debit discounts allowed. Observed 2026-09-03.
- 9-A M.R.S. § 8-509 (legislature.maine.gov) — Maine credit and debit surcharge prohibition; government-entity exception. Observed 2026-09-03.
- M.G.L. c. 140D, § 28A (malegislature.gov); Mass. Div. of Banks Opinion 2021-005 (mass.gov) — Massachusetts surcharge prohibition; at-cost third-party convenience fee guidance. Observed 2026-09-03.
- N.Y. Gen. Bus. Law § 518 (nysenate.gov); Erie County Consumer Protection notice on the Feb 11, 2024 changes — New York total-price posting requirement, cap at the amount charged by the card company, $500 per violation. Observed 2026-09-03.
- C.R.S. § 5-2-212 and SB 21-091 (leg.colorado.gov; justia.com) — Colorado 2%-or-actual-cost cap, notice requirements, effective July 1, 2022. Observed 2026-09-03.
- Oklahoma SB 677 (2025), repealing 14A O.S. § 2-417 — via Bass, Berry & Sims and Stinson LLP client alerts — Oklahoma repeal effective Nov 1, 2025; 2%-or-actual-cost cap; entrance, point-of-sale, and website notices. Observed 2026-09-03.
- CardX, LLC v. Schmidt, 522 F. Supp. 3d 929 (D. Kan. 2021); Kansas HB 2247 (2024) — Kansas ban held unconstitutional; ban formally lifted with disclosure conditions effective Jan 1, 2025. Observed 2026-09-03.
- Italian Colors Rest. v. Becerra, 878 F.3d 1165 (9th Cir. 2018) — opinion via ca9.uscourts.gov / justia.com — California Civ. Code § 1748.1 held unconstitutional as applied. Observed 2026-09-03.
- Dana’s R.R. Supply v. Att’y Gen. of Fla., No. 14-14426 (11th Cir., Nov. 4, 2015) — via justia.com — Florida Fla. Stat. § 501.0117 struck down on First Amendment grounds. Observed 2026-09-03.
- Tex. Bus. & Com. Code § 604A.0021; Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018); Tex. AG Op. KP-0257 (2019) — Texas statute held unconstitutional as applied; AG opinion on remaining enforceability. Observed 2026-09-03.
- Minn. Stat. § 325G.051 (revisor.mn.gov); Minn. Stat. § 325D.44 2024 amendments — Minnesota 5% cap, oral/posted disclosure, advertised-price rule effective Jan 1, 2025. Observed 2026-09-03.
- N.J. P.L. 2023, c.146 (N.J.S.A. 56:8-156.1 to -156.2) — New Jersey actual-cost cap and disclosure requirement. Observed 2026-09-03.
- Virginia SB 1212 / HB 2515 (2025) — via Stinson LLP and Troutman (Consumer Financial Services Law Monitor) analyses — Virginia advertised-total-price requirement effective July 1, 2025; penalties up to $2,500 per violation. Observed 2026-09-03.
- Georgia HB 299; Georgia Attorney General Consumer Protection Division, "Credit Card Surcharges" (consumered.georgia.gov) — Georgia cost-of-acceptance cap, fee-free alternative requirement, disclosure rules. Observed 2026-09-03.
- South Carolina H. 3477 (2013), scstatehouse.gov — The failed bill behind the phantom "§ 39-1-100" cite; no SC surcharge statute was ever enacted. Observed 2026-09-03.
- Merchant Cost Consulting, "Credit Card Surcharge Laws by State" (updated Nov 2025); LawPay 50-state survey (2025) — Secondary confirmation for the no-statute states, including Pennsylvania, North Carolina, Wisconsin, Maryland, and Utah, and for pending bills (NC HB 13, failed 2024 Maryland bills). Observed 2026-09-03.
Want the Program Set Up Right for Your State?
The rules on this page are exactly what a well-configured program handles for you — the right cap for your state, compliant signage, itemized receipts, and a processor who tracks the changes so you don't have to. Tell us your state and how you take payments, and we'll walk you through what's allowed.