- Visa's rules allow a surcharge on credit cards only, never on debit or prepaid cards, and never above 3% or your cost of acceptance.
- Visa requires 30 days notice to your card processor, a sign where customers come in and pay, and the surcharge as its own line on the receipt.
- Some states ban or limit surcharges. A cash discount offered to everyone is a different thing, and is allowed in the states we checked.
Surcharge or cash discount
A surcharge adds a fee when the customer pays by credit card. A cash discount sets the regular price and takes something off for cash or check. The money can come out the same, but the law treats them differently. The state statutes we read that ban surcharges also say a discount for cash, offered to all buyers, is allowed.
Visa's rules for surcharging
Even where your state allows a surcharge, the card networks have their own rules. Visa's published rules for US merchants:
- Tell your card processor (your acquirer) at least 30 days before you start surcharging.
- Surcharge credit cards only. Debit and prepaid cards cannot be surcharged, even when the customer picks credit on the terminal.
- Keep the surcharge at or under your cost of accepting the card, and never above 3%.
- Post a notice where customers come in and where they pay, and show the surcharge as its own line on every receipt.
Other networks have their own rules; your processor can tell you what they require.
State laws we have read
| State | What the statute says | Statute |
|---|---|---|
| California | The statute says a retailer may not surcharge a consumer for paying by credit card; a discount for cash is allowed if offered to all buyers. | California Civil Code 1748.1 |
| Maine | A seller may not surcharge a credit or debit card payment. A discount from the regular price is not a surcharge. | Maine Revised Statutes title 9-A, 8-509 |
| Massachusetts | A seller may not surcharge a credit card payment. A cash discount offered to all buyers is allowed. | Massachusetts General Laws chapter 140D, section 28A |
| Minnesota | A surcharge is allowed if the customer is told: orally and on a posted sign in person, on the checkout page online, orally on the phone. The statute caps the surcharge at five percent of the purchase price. | Minnesota Statutes 325G.051 |
| New York | A seller who surcharges must post the total credit card price, including the surcharge, and the surcharge may not be more than what the card company charges the business. | New York General Business Law 518 |
Visa's surcharging Q and A says that, as of February 15, 2024, Visa understands that Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico prohibit surcharging, and that Colorado, Minnesota, New Jersey and New York have requirements for surcharging. Visa adds that its understanding may contain errors and is not legal advice.
Courts have questioned how some state surcharge laws apply, and laws change. Before you add a surcharge, check your state's current law and your processor's agreement.
What this means for a contractor
- Price it in. Many contractors build card costs into their prices and skip the surcharge, which is simpler and avoids the rules above.
- If you surcharge, say so on the estimate and the invoice, post the notice, and only on credit cards.
- Offer bank payments for big tickets, where card fees hurt most.
Koira's free Office plan takes card payments on every invoice. See pricing for the card rate on each plan.
Sources
- Visa, U.S. merchant surcharge Q and A, checked October 9, 2026
- Visa, merchant surcharging considerations and requirements, checked October 9, 2026
- California Civil Code 1748.1, checked October 9, 2026
- Maine Revised Statutes title 9-A, 8-509, checked October 9, 2026
- Massachusetts General Laws chapter 140D, section 28A, checked October 9, 2026
- Minnesota Statutes 325G.051, checked October 9, 2026
- New York General Business Law 518, checked October 9, 2026
Published September 25, 2024. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.