You might be thinking about adding credit card surcharges. Find out here if it is legal to charge customers for credit card use in your state. Keep in mind that if your customers are in a different state than your business, it may be unclear which state’s laws you are required to comply with. In such cases, we recommend consulting a legal advisor familiar with credit card surcharging laws. Also, keep in mind that Visa imposes fines of up to $5,000 for the first offense of improper surcharging. Note that debit card surcharging is prohibited in all states under federal law.
States Where Credit Card Surcharge Fees Are Prohibited
The following states explicitly prohibit merchants from adding surcharges to credit card transactions. In these states, merchants may still offer cash discounts as an alternative.
California
Credit card surcharges are prohibited. Under SB 478, effective July 1, 2024, any credit card processing fees must be included in advertised prices. Surcharges cannot be added as a separate line item at checkout. For more information, see the California Attorney General’s guidance on credit card surcharges.
Connecticut
Connecticut has an explicit state law banning credit card surcharges under General Statutes § 42-133ff. Merchants may offer cash discounts instead. For more details, see the Connecticut Department of Consumer Protection.
Maine
Maine explicitly prohibits credit card surcharges under Title 9-A, § 8-509. Merchants may offer cash discounts as an alternative.
Massachusetts
Massachusetts has an explicit state law banning credit card surcharges under Chapter 140D, Section 28A. Merchants may offer cash discounts instead.
Puerto Rico
Puerto Rico’s Law 150 forbids surcharges on credit or debit card transactions. A May 2025 First Circuit ruling upheld Puerto Rico’s authority to enforce this prohibition.
States with Restrictions on Credit Card Surcharges
The following states allow credit card surcharges but impose specific caps, disclosure requirements, or other restrictions that merchants must follow.
Colorado
Surcharges are allowed but capped at 2% of the sale amount or the merchant’s actual processing cost, whichever is lower, under SB21-091 (codified at § 5-2-212). Merchants must display notice of the surcharge on-premises and online.
Florida
Florida’s § 501.0117 technically bans surcharging, but federal courts have ruled the ban unconstitutional. Surcharges are effectively legal, though merchants should ensure clear disclosure. See also the Florida Attorney General’s guidance.
Georgia
Surcharges are allowed but cannot exceed the merchant’s actual cost of card acceptance under § 13-1-15.
Illinois
Surcharges are allowed but capped at 1% or the total processing fee, whichever is lower. Effective July 2026, interchange fees cannot be charged on the tax or gratuity portion of a transaction. See the Illinois General Assembly for current legislation.
Kansas
Effective January 1, 2025, merchants can legally add surcharge fees if they post clear notice at the point of sale, store entry, and online, per § 16a-2-403.
Minnesota
Effective January 1, 2025, surcharges are capped at 5% of the purchase price under § 325G.051. The fee must be reasonably avoidable (e.g., a cash alternative must be available), disclosed at the point of sale, and posted conspicuously on the premises.
Montana
Merchants can charge a surcharge of up to 3%. Any fee must be disclosed to the customer prior to transaction processing.
Nevada
Surcharges are legal but must not exceed the merchant’s cost of card acceptance. Without documentation, the maximum is 1.5%. Surcharges must be clearly disclosed to customers.
New Jersey
Surcharges are legal but cannot exceed the merchant’s actual cost of processing the payment under § 56:8-156.2. For more information, see the New Jersey Division of Consumer Affairs FAQ.
New York
Surcharges are allowed but cannot exceed the merchant’s cost of card acceptance (capped at 4% under card brand rules) per General Business Law § 518. Merchants must clearly disclose the final price including the surcharge before checkout. Penalties of up to $500 per violation may apply.
Oklahoma
Oklahoma’s statute under § 14A-2-417 technically prohibited surcharging, but federal courts have ruled the ban unconstitutional, making surcharges effectively legal.
Rhode Island
Surcharges are legal but require prominent notices at the store entry, point of sale, and on websites explaining the surcharge amount.
South Dakota
Surcharges are allowed if they do not exceed the merchant’s cost of card acceptance, capped at 4%. Merchants must disclose surcharges at the store entrance, point of sale, on their website, and on receipts. See South Dakota Consumer Protection for more details.
Texas
Texas state law under § 604A.0021 technically bans surcharging, but a federal court has ruled the ban unconstitutional. There remains some enforceability uncertainty. Merchants may also legally impose “convenience fees” or “service fees” on all payment methods as an alternative. See the Texas State Law Library FAQ for more information.
Virginia
Surcharges are legal. As of July 1, 2025, sellers must clearly and conspicuously disclose surcharge fees in the total transaction price under § 59.1-608.
Wyoming
Merchants can surcharge credit card transactions under § 40-14-209. Cash discounts are capped at 5%.
States That Allow Credit Card Surcharging
The following states allow credit card surcharges with no state-specific restrictions beyond the standard card brand rules. Visa limits surcharges to 3% and Mastercard to 4%, or the merchant’s actual cost of acceptance, whichever is lower. Merchants should always clearly disclose any surcharges to customers.
- Alabama
- Alaska
- Arizona
- Arkansas
- Delaware
- Hawaii
- Idaho
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maryland
- Michigan
- Mississippi
- Missouri
- Nebraska
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Vermont
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin