Credit card processing and merchant services in Arkansas
Arkansas dropped its state tax on groceries to 0% on January 1, 2026. Surcharges still follow card network rules, which the Attorney General says apply to credit cards only.
Card surcharges
Surcharging allowedNo Arkansas statute caps surcharges; the Attorney General says they apply to credit cards only, under card network rules.
Sales tax
6.5% state rate, plus local
Last checked
October 6, 2026
Two Arkansas details are worth checking before you touch your POS settings, and only one of them changed this year. On January 1, 2026, the state's reduced tax rate on food went to 0%, according to the Department of Finance and Administration. The general state rate is still 6.5%, with city and county taxes on top. Whatever tax is left on a grocery line now comes from those local levies, so a food tax code that still carries a state share is out of date.
The other detail is surcharging, and nothing changed there. We haven't found an Arkansas statute that caps or bans card surcharges. The Attorney General's consumer page says surcharges apply only to credit card transactions and have to follow card network rules, and it tells merchants to check with their merchant account provider before adding one. In practice that means Visa's limit of 3% or your merchant discount rate, Mastercard's 4% or your average effective rate, and no fee at all on debit or prepaid cards.
Is a surcharge worth it in your business? Run your own numbers. A farm supply store billing $1,800 orders on credit would recover $54 a sale at 3%. A diner with $14 checks would collect 42 cents and maybe a complaint. Our advice: fix what you pay first, then decide whether a fee is worth the conversation at the register.
Clearo works with Arkansas businesses remotely, prices on interchange-plus, and doesn't use long-term contracts or cancellation fees. If you do want to surcharge, our surcharging program covers disclosure and setup. A free statement review is the easiest way to see where you stand today.
What Arkansas merchants should know
Credit card surcharges in Arkansas
We haven't found an Arkansas statute that bans or caps credit card surcharges, and the 2016 NCSL table lists none. The Attorney General's office describes surcharges as fees on credit card transactions only, notes that they aren't permitted in every state, and says they must follow card network rules and legal requirements. It suggests checking with your merchant account provider and a lawyer before you start.
The network rules that apply:
- Visa: up to your merchant discount rate or 3%, whichever is lower, with 30 days' notice to your acquirer.
- Mastercard: up to your average effective merchant discount rate for Mastercard credit or 4%.
- Nothing on debit or prepaid cards, and disclosure at the entrance, at checkout and on the receipt.
Sources: Arkansas Attorney General, Credit cards; Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Merchant surcharge rules (US); National Conference of State Legislatures, Credit or debit card surcharges statutes (2016 table)
Sales tax and the 0% state grocery rate
The state sales and use tax rate is 6.5%, in place since July 1, 2013. The state's reduced rate on food is 0% from January 1, 2026. Cities and counties levy their own sales taxes, which DFA publishes in its city and county rate tables.
Keep groceries on their own tax code so the state share stays at zero, and look up your location's local rates before you set the rest.
Sources: Arkansas Department of Finance and Administration, State sales and use tax rates; Arkansas Department of Finance and Administration, City and county sales and use tax rates
Convenience fees are not surcharges
The Attorney General's page separates the two kinds of card fee. A surcharge applies only to credit card transactions. A convenience fee, as the AG describes it, can be charged on credit and debit cards when a merchant offers customers an alternative, non-standard way to pay.
Ask your processor how either fee has to be set up before you add it.
Cities we cover in Arkansas
Payment services we provide
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Common questions
Are credit card surcharges legal in Arkansas?
Yes, within the limits the card networks set. We haven't found an Arkansas statute on surcharges, and the Attorney General's page says they apply only to credit cards and must follow network rules. That means up to 3% or your cost on Visa credit, up to 4% or your cost on Mastercard credit, and signs plus a receipt line that tell customers about the fee.
Do I still charge sales tax on groceries in Arkansas?
Not at the state level. DFA lists the state reduced food tax rate at 0% from January 1, 2026. City and county taxes are set locally, so look up your location in DFA's local rate tables to see what applies to food there. Non-food items stay at the 6.5% state rate plus local tax.
What's the difference between a surcharge and a convenience fee in Arkansas?
The Attorney General's page treats them differently. A surcharge is a percentage fee on credit card transactions only. A convenience fee can apply to debit and credit cards when you offer an alternative, non-standard way to pay. Confirm the setup with your processor before you charge either one.
Can I charge a fee when a customer pays with a debit card?
Not as a surcharge. The Attorney General's page limits surcharges to credit cards, and Visa and Mastercard don't allow them on debit or prepaid cards. Debit usually costs less to accept anyway: for cards from banks with $10 billion or more in assets, Regulation II caps interchange at 21 cents plus 0.05% of the sale, plus 1 cent.
Other states we serve besides Arkansas
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page 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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