Is Credit Card Surcharging Legal?
Credit card surcharging is permitted in most U.S. states, although a small number of states and U.S. territories continue to restrict or prohibit the practice. Because these laws can change, merchants should verify the current requirements in the states where they do business.
Permitted in most U.S. states
Must disclose before checkout. Credit cards only — not debit. Cannot exceed your actual cost of acceptance, subject to card-network limits (currently 3% for Visa).
Restricted in some jurisdictions
A small number of states and territories currently restrict or prohibit credit card surcharges. Laws can change — verify requirements where you operate.
The legal history
For decades, Visa and Mastercard merchant agreements prohibited surcharging entirely. This changed in 2013 when a class-action settlement (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation) required Visa and Mastercard to allow merchants to surcharge.
However, existing state surcharge prohibitions weren't affected by the settlement. New York's law was struck down in 2017 (Expressions Hair Design v. Schneiderman) on First Amendment grounds. California's law was similarly struck down in 2018. Surcharge laws continue to evolve through legislation and court decisions, making it important for merchants to verify current requirements in their states.
There is currently no federal law prohibiting credit card surcharges — the legal landscape is state-by-state, with U.S. territories maintaining their own consumer protection frameworks.
The universal rules that apply in every permitted state
Even where surcharging is permitted, these rules from Visa, Mastercard, and Discover apply:
Disclosure required before checkout
You must inform the customer of the surcharge before they enter payment information. This can be a notice on the payment page, at the point of sale, or on the invoice. Surprise surcharges on the receipt are not allowed.
Credit cards only — not debit
Visa and Mastercard explicitly prohibit surcharging debit card transactions, including signature debit cards that run on the Visa or Mastercard network. The surcharge must be suppressed when the card is identified as debit.
Cannot exceed your actual cost of acceptance
The surcharge cannot exceed the merchant's actual cost of acceptance and is also subject to applicable card-network limits (currently 3% for Visa). You cannot profit from the surcharge.
Must apply equally to all cards of that network
If you surcharge Visa credit cards, you must apply the same surcharge percentage to all Visa credit cards. You cannot selectively surcharge premium rewards cards and exempt basic cards.
Notify your processor and the card networks
Before implementing surcharging, you are technically required to notify Visa and Mastercard in writing. Many processors handle this notification process for their merchants.
Jurisdictions with current restrictions
Connecticut
State law restricts surcharging. Verify current requirements before implementing.
Massachusetts
State law restricts surcharging. Verify current requirements before implementing.
Puerto Rico
U.S. territory with its own consumer protection laws restricting surcharging. Verify current requirements.
Note: Merchants operating across multiple states should ensure their surcharge practices comply with applicable state laws and card-network rules for the transactions they process. Because surcharge laws can change through legislation and court decisions, the table below is the reference we commit to keeping current — check back for updates.
Full state-by-state reference
Last reviewed: July 2026. We commit to keeping this table current as laws change.
| State / Territory | Status |
|---|---|
| Alabama | Permitted |
| Alaska | Permitted |
| Arizona | Permitted |
| Arkansas | Permitted |
| California | Permitted |
| Colorado | Permitted |
| Connecticut | Restricted |
| Delaware | Permitted |
| Florida | Permitted |
| Georgia | Permitted |
| Hawaii | Permitted |
| Idaho | Permitted |
| Illinois | Permitted |
| Indiana | Permitted |
| Iowa | Permitted |
| Kansas | Permitted |
| Kentucky | Permitted |
| Louisiana | Permitted |
| Maine | Permitted |
| Maryland | Permitted |
| Massachusetts | Restricted |
| Michigan | Permitted |
| Minnesota | Permitted |
| Mississippi | Permitted |
| Missouri | Permitted |
| Montana | Permitted |
| Nebraska | Permitted |
| Nevada | Permitted |
| New Hampshire | Permitted |
| New Jersey | Permitted |
| New Mexico | Permitted |
| New York | Permitted |
| North Carolina | Permitted |
| North Dakota | Permitted |
| Ohio | Permitted |
| Oklahoma | Permitted |
| Oregon | Permitted |
| Pennsylvania | Permitted |
| Rhode Island | Permitted |
| South Carolina | Permitted |
| South Dakota | Permitted |
| Tennessee | Permitted |
| Texas | Permitted |
| Utah | Permitted |
| Vermont | Permitted |
| Virginia | Permitted |
| Washington | Permitted |
| West Virginia | Permitted |
| Wisconsin | Permitted |
| Wyoming | Permitted |
| Puerto Rico | Restricted |
| Washington D.C. | Permitted |
Win! helps automate surcharge compliance
Surcharge compliance involves card-network rules, state laws, debit detection, and disclosure timing — all at the same time. Win!'s surcharge engine automates the mechanics so you don't have to track them manually:
- The surcharge is displayed on the checkout page before the customer selects a payment method — satisfying the card-network disclosure requirement.
- Win! automatically identifies debit cards — even when processed over the Visa or Mastercard network — and suppresses any surcharge so your customers are charged appropriately. You never have to manually check whether a card is debit.
- For jurisdictions with surcharge restrictions, Win! can be configured to suppress surcharges for those transactions — helping you implement consistent rules across your customer base.
- Win! also makes it easy to disable surcharging entirely if your business chooses not to assess a surcharge. Compliance automation is built-in whether you surcharge or not.
Win! helps merchants implement surcharge rules consistently — the merchant remains responsible for ensuring their surcharge practices comply with applicable laws and card-network rules.
Frequently asked questions
Is surcharging legal in Texas?
Yes. Texas does not have a state law prohibiting credit card surcharges. Merchants in Texas may surcharge credit card transactions provided they follow card-network disclosure requirements and keep the surcharge at or below their actual cost of acceptance, subject to applicable card-network limits.
Is surcharging legal in Florida?
Yes. Florida permits credit card surcharging. There is no state statute prohibiting the practice. Merchants must disclose the surcharge before the customer completes payment and may not surcharge debit card transactions.
Is surcharging legal in California?
Yes. California's surcharge prohibition was struck down by the Ninth Circuit in 2018 (Italian Colors Restaurant v. Becerra). Merchants in California may surcharge credit cards provided they comply with card-network rules on disclosure and limits.
Can I surcharge Visa credit cards?
Yes, provided surcharging is permitted where you operate. Visa allows merchants to surcharge credit card transactions. However, the surcharge cannot exceed the merchant's actual cost of acceptance and is subject to Visa's current operating rules, which cap most surcharges at 3%. You must apply the same surcharge to all Visa credit cards — you cannot selectively surcharge only premium or rewards cards.
Can I surcharge Mastercard credit cards?
Yes. Mastercard allows credit card surcharging on the same terms as Visa. The surcharge must not exceed your actual cost of acceptance. You must notify Mastercard and your processor before implementing surcharging, and you must apply the fee consistently across all Mastercard credit cards.
Can I surcharge debit cards?
No. Visa and Mastercard operating rules explicitly prohibit surcharging debit card transactions, including signature debit cards that run on the Visa or Mastercard network. Win! automatically identifies debit cards — even when processed over the Visa or Mastercard network — and suppresses the surcharge so your customers are never charged incorrectly.
Can I surcharge American Express (Amex)?
American Express updated its rules in 2013 to allow surcharging on the same terms as Visa and Mastercard. If you surcharge Visa and Mastercard credit cards, you may also surcharge Amex at the same rate. You cannot apply a higher surcharge to Amex than to Visa or Mastercard.
What is dual pricing?
Dual pricing is a pricing strategy where merchants display two prices — one for cash (or debit) payment and one for credit card payment. Rather than adding a surcharge at checkout, the credit card price is simply listed higher from the start. Dual pricing is legal in all states and avoids some of the disclosure complexity associated with traditional surcharging.
What is cash discounting?
Cash discounting means setting your standard price as the card price, then offering a discount to customers who pay with cash or check. Like dual pricing, cash discounting is generally treated differently from surcharging and is permitted in all states. It must be presented as a discount from your posted price, not as an additional fee for card payment.
Related guides
Legal disclaimer: This page is provided for informational purposes only and does not constitute legal advice. Surcharge laws and card-network rules may change at any time. Merchants should consult their legal advisor regarding compliance with applicable laws and regulations in the states where they operate. Visa, Mastercard, American Express, and Discover are trademarks of their respective owners and are not affiliated with Win! or WebTechPro.