SurchargingCompliance

Credit card surcharging rules by state (2026 guide)

January 2026, updated October 2026•12 min read•Clearo Payments

Surcharging laws change. Each row of the state table below shows the day we last checked it and links its main official source, so confirm the current rule there before you start.

Short answer

Most US states allow credit card surcharges. Connecticut, Maine and Massachusetts ban them, and 9 more add limits of their own. Card network rules apply everywhere: credit cards only, never debit or prepaid; no more than 3% for Visa or 4% for Mastercard, or your cost if lower; notice before you start; signs at the entrance and checkout; and the fee shown on the receipt.

Credit card surcharging, charging customers a fee when they pay by credit card, can offset part of what you pay to accept credit cards, though not your processing costs on debit, which can't be surcharged. But it's one of the most compliance-heavy strategies in payment processing. State laws vary, card network rules apply, and getting it wrong can result in fines or customer complaints.

This guide covers what you need to know: federal rules, card network requirements, state-by-state restrictions, and how to implement surcharging correctly.

What surcharging is and how it works

A credit card surcharge is a fee added to the transaction total when a customer chooses to pay by credit card. The fee offsets the merchant's processing cost, which depends on the card type.

Surcharges apply only to credit cards. Debit cards, prepaid cards, and cash transactions cannot be surcharged under card network rules.

Federal rules and card network requirements

Visa caps a credit card surcharge at your merchant discount rate for that card or 3%, whichever is lower
Mastercard caps it at your average effective merchant discount rate for Mastercard credit or 4%, whichever is lower
Visa requires at least 30 days' notice to your acquirer before you start, and Mastercard's rules also call for advance notice; ask your processor what each network currently requires
Signage must be posted at the point of entry and the point of sale
The surcharge amount must appear as a separate line item on receipts
You cannot surcharge debit cards or prepaid cards, even when a debit cardholder chooses "credit"

State-by-state breakdown

Surcharge rules map

Each square stands for a state or DC, placed roughly where it sits on a map. Select one to see its status, the date we checked it and a link to its page or sources; the table under the map lists the same information as text.

  • Surcharging allowed (38) solid
  • Allowed with limits (9) striped
  • Surcharging prohibited (3) cross-hatched
  • Check current rules (1) dotted

Keyboard: Tab to the map, move between states with the arrow keys, and press Enter or Space to select one.

Select a state on the map to see its surcharge status here.

To work out the fee on a sale, use our credit card surcharge calculator. It checks a rate against the card network caps and the rules for any state or province.

Every row below names the official source that best supports it and the day we last checked it. Where we have a page for the state, its name links to that page, which lists every statute, regulator page and card network rule we used. Alaska and Hawaii don't have pages yet, so their rows list all the sources we checked. The card network caps above apply in every state.

State rules table

StateStatusRule summary and main sourceChecked
AlabamaSurcharging allowedWe found no Alabama law capping card surcharges; Visa's 3% and Mastercard's 4% caps and the debit card ban apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
AlaskaSurcharging allowedWe found no Alaska surcharge statute, and Visa's list of states with surcharge rules leaves Alaska off. Visa's 3% and Mastercard's 4% caps apply.Sources: U.S. Merchant Surcharge Q and A (Visa); Mastercard Credit Card Surcharge Rules and Fees for Merchants
ArizonaSurcharging allowedNo Arizona statute bans or caps them; Visa caps them at 3% and Mastercard at 4%, and debit cards are excluded.Source: U.S. Merchant Surcharge Q and A (Visa)
ArkansasSurcharging allowedNo Arkansas statute caps surcharges; the Attorney General says they apply to credit cards only, under card network rules.Source: Arkansas Attorney General, Credit cards
CaliforniaAllowed with limitsThe 1748.1 ban was never repealed, but the Attorney General generally follows the 2018 Italian Colors ruling; card network caps apply.Source: California Attorney General, Credit card surcharges
ColoradoAllowed with limitsAllowed on credit cards since July 2022, capped at 2% or your actual merchant discount fee, with set sign wording. No debit.Source: Colorado General Assembly, SB21-091 Credit transaction charge limitations
ConnecticutSurcharging prohibitedConnecticut bans surcharges on every payment method; a clearly posted cash discount is the legal alternative.Source: Connecticut Department of Consumer Protection, What is the Connecticut surcharge law?
DelawareSurcharging allowedNo Delaware law limits surcharges; Visa's 3% and Mastercard's 4% caps apply, and debit can't be surcharged.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
FloridaAllowed with limitsFlorida's statute still bans surcharges, but the Attorney General says courts struck it down. Disclose any credit card fee.Source: Florida Attorney General, How to protect yourself: credit card surcharges
GeorgiaSurcharging allowedNo Georgia law caps retail card surcharges; Visa's 3% and Mastercard's 4% network caps apply.Source: U.S. Merchant Surcharge Q and A (Visa)
HawaiiCheck current rulesNo Hawaii surcharge statute turned up and Visa lists no Hawaii rule, but a 2026 bill, HB 1930, proposed card fee limits. Check whether it passed.Sources: U.S. Merchant Surcharge Q and A (Visa); Hawaii State Legislature, HB1930 (2026), Relating to Consumer Protection; Mastercard Credit Card Surcharge Rules and Fees for Merchants
IdahoSurcharging allowedNo Idaho law bans or caps them, so card network caps apply; on taxable sales, the fee itself may be taxable.Source: U.S. Merchant Surcharge Q and A (Visa)
IllinoisSurcharging allowedNo Illinois statute caps surcharges, so Visa's 3% and Mastercard's 4% limits apply; the 1% cap often quoted came from a bill that died.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
IndianaSurcharging allowedIndiana has no surcharge statute, so card network rules govern: up to 3% on Visa, 4% on Mastercard, and never on debit or prepaid cards.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
IowaSurcharging allowedNo Iowa statute limits credit card surcharges, so Visa's 3% and Mastercard's 4% caps and the debit card ban set the rules.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
KansasAllowed with limitsKansas allows credit card surcharges if you disclose the amount at the point of entry or sale first; network caps of 3% and 4% apply.Source: Kansas Legislature, K.S.A. 16a-2-403 (2026 Kansas Statutes)
KentuckySurcharging allowedKentucky has no surcharge statute we've found, so network rules apply: 3% on Visa, 4% on Mastercard, none on debit.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
LouisianaSurcharging allowedNo state cap on credit card surcharges, but Louisiana has banned debit card surcharges since August 1, 2026.Source: Louisiana Legislature, Act 751 of 2026 (Senate Bill 254), enrolled text
MaineSurcharging prohibitedMaine bans surcharges on both credit and debit card payments; discounts for paying cash or check are allowed.Source: Maine Revised Statutes, Title 9-A, Sec. 8-509, Credit card and debit card surcharge prohibition
MarylandSurcharging allowedNo Maryland law caps surcharges (there's no 4% state cap); Visa's 3% and Mastercard's 4% caps still apply.Source: Maryland Code, Commercial Law Sec. 12-509
MassachusettsSurcharging prohibitedMassachusetts bans credit card surcharges; a discount for paying cash or check is the lawful alternative.Source: Massachusetts General Laws, Chapter 140D, Section 28A
MichiganSurcharging allowedMichigan's Attorney General says no state law restricts card surcharges; Visa and Mastercard caps and their debit card ban still apply.Source: Michigan Department of Attorney General, Credit and debit card surcharges
MinnesotaAllowed with limitsMinnesota allows credit card surcharges up to 5% with spoken and posted notice; Visa's 3% and Mastercard's 4% caps are lower.Source: Minnesota Revisor of Statutes, 325G.051 Surcharges on credit cards
MississippiSurcharging allowedWe found no Mississippi surcharge statute; Visa (3%) and Mastercard (4%) caps and the debit card ban apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
MissouriSurcharging allowedMissouri has no surcharge statute; Visa's 3% and Mastercard's 4% caps, disclosure rules and the debit card ban set the limits.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
MontanaSurcharging allowedNo Montana statute caps them, despite a 3% cap quoted online; card network caps and the debit ban still apply.Source: U.S. Merchant Surcharge Q and A (Visa)
NebraskaSurcharging allowedWe found no Nebraska surcharge statute; Visa's 3% and Mastercard's 4% caps apply, and debit and prepaid cards can't be surcharged.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
NevadaSurcharging allowedNo Nevada statute bans or caps them; Visa and Mastercard caps, posted signs and itemized receipts still apply.Source: Nevada Attorney General, consumer alert on deceptive credit card surcharges (November 16, 2020)
New HampshireSurcharging allowedNo New Hampshire law limits surcharges; Visa's 3% and Mastercard's 4% caps, notice and receipt rules apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
New JerseyAllowed with limitsCredit card surcharges are capped at your actual processing cost and must be disclosed before the customer pays.Source: New Jersey Legislature, P.L. 2023, c. 146 (credit card surcharges)
New MexicoSurcharging allowedNo state surcharge law found, so card network caps apply: 3% for Visa, 4% for Mastercard, or your cost if lower. No debit.Source: U.S. Merchant Surcharge Q and A (Visa)
New YorkAllowed with limitsSurcharges can't exceed what the card company charges you, and you must post the total price for paying by card.Source: New York State Senate, General Business Law Sec. 518
North CarolinaSurcharging allowedNo North Carolina surcharge statute that we've found; Visa caps credit surcharges at 3% and Mastercard at 4%.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
North DakotaSurcharging allowedNorth Dakota has no surcharge statute; card network caps of 3% for Visa and 4% for Mastercard apply, and debit can't be surcharged.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
OhioSurcharging allowedNo Ohio statute restricts credit card surcharges; the card networks cap them at 3% (Visa) and 4% (Mastercard) and bar them on debit.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
OklahomaAllowed with limitsAllowed on credit cards since Nov. 1, 2025, capped at 2% or your actual processing cost, whichever is less, with posted notice.Source: Oklahoma Legislature, Enrolled Senate Bill No. 677 (PDF)
OregonSurcharging allowedNo Oregon law bans or caps them; Visa and Mastercard caps, posted notice and the ban on debit surcharges still apply.Source: U.S. Merchant Surcharge Q and A (Visa)
PennsylvaniaSurcharging allowedNo Pennsylvania law limits surcharges; Visa's 3% and Mastercard's 4% caps and the disclosure rules apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
Rhode IslandSurcharging allowedNo Rhode Island law limits surcharges; Visa's 3% and Mastercard's 4% caps apply, and debit cards are off limits.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
South CarolinaSurcharging allowedSouth Carolina has no surcharge statute we've found; network caps and the debit card ban set the limits.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
South DakotaSurcharging allowedNo South Dakota statute caps surcharges; network caps apply, and Visa's 3% is lower than the 4% in the state's consumer guidance.Source: South Dakota Consumer Protection, Credit, debit and ATM cards
TennesseeSurcharging allowedNo Tennessee surcharge statute we've found; network caps apply, and fees must be disclosed before the customer pays.Source: Tennessee Attorney General, AG Slatery warns against deceptive credit card surcharges (February 12, 2021)
TexasAllowed with limitsBan still in the statute; a 2018 ruling covers surcharges at or below cost. Debit surcharges are banned. Get legal advice first.Source: Texas Business and Commerce Code, Chapter 604A: Prohibition of certain surcharges
UtahSurcharging allowedNo Utah statute caps them; disclose the exact fee before purchase and stay within the Visa and Mastercard caps.Source: Utah Division of Consumer Protection, Surcharges and fees
VermontSurcharging allowedNo Vermont law limits surcharges; Visa's 3% and Mastercard's 4% caps, notice and receipt rules still apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
VirginiaSurcharging allowedNo Virginia surcharge cap, but since July 1, 2025 displayed prices must include any mandatory fee or surcharge.Source: Code of Virginia, Section 59.1-608: Mandatory fees or surcharges; disclosure required
WashingtonSurcharging allowedNo Washington statute limits them, so the card network caps, posted notice and the no-debit rule are what apply.Source: U.S. Merchant Surcharge Q and A (Visa)
Washington, DCSurcharging allowedNo DC law limits credit card surcharges; Visa's 3% and Mastercard's 4% caps and disclosure rules still apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
West VirginiaSurcharging allowedWest Virginia has no surcharge statute we've found; card network caps (3% Visa, 4% Mastercard) apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
WisconsinSurcharging allowedNo Wisconsin statute limits credit card surcharges, and state law bars card issuers from blocking cash discounts; network caps apply.Source: National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
WyomingSurcharging allowedNo Wyoming statute restricts them; Visa and Mastercard caps, disclosure rules and the debit ban are the limits.Source: U.S. Merchant Surcharge Q and A (Visa)

51 rows, one for each state and DC.

The CSV has the same rows, plus each state's cap where state law sets one, the full source link, and our page for the state.

Cite this: Clearo Payments, "Credit card surcharging rules by state (2026 guide)," https://clearopayments.com/blog/credit-card-surcharging-rules-by-state/, latest row checked .

How to set up surcharging compliantly

1

Confirm your state allows it

Verify your state permits surcharging. Connecticut, Maine, and Massachusetts currently prohibit it.

2

Give notice

Visa requires at least 30 days' notice to your acquirer before you start, and Mastercard's rules also call for advance notice. Clearo handles this for you.

3

Post required signage

Signage must appear at the entrance and at the point of sale. We provide compliant signage templates.

4

Configure your terminals

Terminals must automatically identify credit vs. debit and apply the surcharge only to credit transactions. Clearo handles this configuration.

5

Update your receipts

The surcharge must appear as a separate, labeled line item on all receipts. Automatic with proper terminal setup.

Common mistakes that trigger problems

Surcharging debit cards (prohibited by Visa and Mastercard)
Charging more than your actual processing cost
Failing to disclose the surcharge before the customer completes the transaction
Not posting required signage at entry and checkout
Implementing surcharging in a state that prohibits it

Surcharging vs. dual pricing vs. cash discount

Surcharging adds a fee to credit card transactions. Dual pricing displays two prices (cash and card) and lets the customer choose. Cash discounting offers a discount to cash customers (which is legally a different structure than surcharging). Surcharging is particularly popular among wellness and fitness businesses and professional services firms where customers regularly pay large invoices by credit card. See how Clearo's surcharging compares to Square for service businesses.

All three can achieve similar outcomes. The right choice depends on your state, customer base, and how you want to communicate pricing. Clearo will recommend the right approach for your specific situation. Book a free statement review to see how surcharging could impact your bottom line.

Not sure if surcharging works in your state?

Book a call and we'll tell you upfront whether surcharging is available in your market, and if not, what alternatives might work.

Learn About Our Surcharging Program

Sources

The card network rules and the three state bans above come from these sources. Each row of the state table links its own main source, and each state's page lists every source behind its status.

  1. U.S. Merchant Surcharge Q and A (Visa) (usa.visa.com)
  2. Mastercard Credit Card Surcharge Rules and Fees for Merchants (mastercard.com)
  3. Connecticut Department of Consumer Protection, What is the Connecticut surcharge law? (portal.ct.gov)
  4. Connecticut General Statutes, Chapter 739, Sec. 42-133ff (cga.ct.gov)
  5. Maine Revised Statutes, Title 9-A, Sec. 8-509, Credit card and debit card surcharge prohibition (legislature.maine.gov)
  6. Massachusetts General Laws, Chapter 140D, Section 28A (malegislature.gov)

Common questions

Which three states ban credit card surcharges outright?

Connecticut, Maine and Massachusetts. Connecticut's ban covers every payment method, Maine's covers both credit and debit cards, and Massachusetts bars surcharges on credit cards. All three allow a discount for paying cash instead, as long as it's disclosed.

How much can I add as a credit card surcharge?

Visa caps it at 3% or your merchant discount rate for that card, whichever is lower. Mastercard caps it at 4% or your average effective merchant discount rate for Mastercard credit, whichever is lower. Some states set their own limits, so check your state's page before you pick a number.

Can I surcharge debit card payments in any state?

No. Card network rules limit surcharges to credit cards, so debit and prepaid cards are excluded, even when a debit cardholder chooses "credit" at the terminal. Your terminal has to tell the card types apart and add the fee to credit transactions only.

What notice do I need to give before I start surcharging?

Visa requires at least 30 days' notice to your acquirer before you start. Mastercard's rules also call for advance notice. Ask your processor who files each notice and what each network currently requires, then post your signs and update your receipts.

Is a cash discount the same thing as a surcharge?

No. A surcharge adds a fee when a customer pays by credit card. A cash discount lowers the price for customers who pay cash, which is why it stays legal in the states that ban surcharges. Our dual pricing vs surcharging guide compares the two in more detail.

Disclaimer: general information, not professional advice

This guide is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.

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