Credit card processing and merchant services in Arizona

Arizona's version of a sales tax is the transaction privilege tax, or TPT. The Department of Revenue says the state rate is 5.6%, and cities assess their own tax through TPT on top of it, so your total depends on where you do business. Before you set rates in a terminal or an online store, confirm the current state and city rates with the department, because each piece is set separately.

Surcharges are simpler. We found no Arizona statute that bans or caps them, which leaves the card networks in charge: Visa limits a surcharge to your merchant discount rate or 3%, whichever is lower, Mastercard to your average effective rate or 4%, and neither allows one on debit or prepaid cards. You also need clear notice at the entrance and the point of sale, the amount on the receipt, and 30 days' notice to your acquirer for Visa.

Here's a quick way to size it. If your Visa cost averages 2.4%, the most you can add to a $150 Visa credit sale is $3.60, not $4.50. Charging more than your cost breaks Visa's rules even though Arizona law says nothing about it.

Cash is optional at the state level, too: we found no Arizona law that makes businesses accept it. If you're weighing a surcharge against a cash discount, our guide to dual pricing and surcharging lays out the trade-offs. Either way, look at your statement first: a free statement review shows your effective rate, and the Phoenix, Tucson, Mesa, Scottsdale, Chandler and Gilbert pages cover those cities.