Credit card processing and merchant services in Connecticut
Connecticut bans surcharges on every payment method and requires most stores to take cash. We help you post cash discounts correctly and cut what you pay to accept cards.
Card surcharges
Surcharging prohibitedConnecticut bans surcharges on every payment method; a clearly posted cash discount is the legal alternative.
Sales tax
6.35% statewide, no local tax
Last checked
October 6, 2026
Connecticut won't let you pass card costs to customers as a surcharge, and its ban reaches further than most. The Department of Consumer Protection sums up Sec. 42-133ff this way: a business can't collect any fee that raises the total because of the payment method the customer picks. Credit, debit and every other method are covered, and the department says a so-called convenience fee tied to the payment method falls under the same ban.
The legal route is a cash discount, and it has to be visible. Either show the cash price and the card price wherever prices appear, or post signs in obvious spots that state the discount as a dollar amount or a percentage. The receipt should show a discount taken off, never a fee added on.
Price displays got stricter on July 1, 2026, when the price transparency law (Sec. 42-536) took effect. Advertised prices now have to include the fees a customer must pay, and the statute says it doesn't permit any surcharge the older law bans. Cash has its own protection: most in-person retailers must accept it, with no "cash not accepted" signs and no higher prices for cash buyers. In January 2026, with pennies scarce, the department told businesses that can't make exact change to round the total down to the nearest five cents.
Sales tax is simpler. The general rate is 6.35% in every town, with no local add-on, and meals are taxed at 7.35%. If you sell meals and taxable merchandise, give each its own tax code.
With surcharging off the table, the number you can move is what you pay to accept cards. We price on interchange-plus, so the network cost and our margin show up as separate lines, and there's no long-term contract. For a first step, send your latest statement for a free statement review, and we'll mark which charges come from the card networks and which come from your processor.
What Connecticut merchants should know
Surcharges are banned for every payment method
Under Conn. Gen. Stat. Sec. 42-133ff, as amended by Public Act 24-142, a business may not collect any fee or charge that increases the total amount of a transaction because of the payment method used. The ban covers credit cards, debit cards, cash, checks and electronic payments. The Department of Consumer Protection says a convenience fee is also prohibited when it results from the method of payment.
Municipalities, government agencies and courts are allowed to add a fee for paying by card. Private businesses are not.
Sources: Connecticut Department of Consumer Protection, What is the Connecticut surcharge law?; Connecticut Department of Consumer Protection, Can a business charge a convenience fee?; Connecticut General Statutes, Chapter 739, Sec. 42-133ff
Cash discounts must be posted
A cash discount is legal in Connecticut, but it has to be disclosed clearly and conspicuously. The Department of Consumer Protection describes two ways to do it:
- Show both the cash price and the credit price wherever prices are listed.
- Post signs in highly visible locations that state the discount as a specific dollar amount or percentage.
The final receipt should show a discount, not an added charge.
Sources: Connecticut Department of Consumer Protection, What are the requirements with respect to cash discounts?; Connecticut Department of Consumer Protection, What is the Connecticut surcharge law?
Price transparency law (from July 1, 2026)
Sec. 42-536 took effect on July 1, 2026. It bars advertising, displaying or offering goods or services at a price that leaves out a fee or charge the customer is required to pay. A violation is an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act. The section states that it does not apply to, or permit, any surcharge that Sec. 42-133ff prohibits.
Source: Connecticut General Statutes, 2026 Supplement, Chapter 743kk, Sec. 42-536 (price transparency)
Cash acceptance
All retailers must accept cash unless an exemption applies. A retailer can't refuse cash, post signs saying cash isn't accepted, or charge cash customers more. Exemptions include phone, mail and online sales, parking lots and garages, membership warehouse clubs, rentals that require collateral, and locations with no employee to help customers in person. A device that converts cash into a prepaid card can satisfy the law if it meets the statute's conditions.
In a January 13, 2026 advisory, the Department of Consumer Protection told businesses that can't make exact change to round the total down to the nearest five cents.
Sources: Connecticut Department of Consumer Protection, Cash payments; Connecticut Department of Consumer Protection, Change for cash payments (January 13, 2026)
Sales tax
The general sales and use tax rate is 6.35%, and no local jurisdiction in Connecticut adds its own sales tax. Meals and certain beverages have been taxed at 7.35% (6.35% plus an additional 1%) since October 1, 2019. The room occupancy tax is 15%.
Sources: Connecticut Department of Revenue Services, Sales and use tax information; Connecticut Department of Revenue Services, Policy Statement 2019(5), sales and use taxes on meals (PDF)
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Common questions
Can I add a credit card surcharge in Connecticut?
No. Connecticut's surcharge law bars any fee that raises the total because of how the customer pays, and that covers credit, debit and every other method. A convenience fee tied to the payment method counts too. Towns, state agencies and courts may add card fees, but private businesses can't. What a business can do is offer a posted cash discount.
How do I offer a cash discount without breaking the law?
Disclose it clearly and conspicuously. The Department of Consumer Protection says you can show both the cash price and the card price wherever prices appear, or post signs in highly visible places that state the discount as a dollar amount or a percentage. The receipt should show the discount taken off, not a fee added on.
Does Connecticut's July 2026 price transparency law change how I show card fees?
It backs up the ban. Since July 1, 2026, Sec. 42-536 has required advertised prices to include any fee a customer must pay, and a violation is an unfair trade practice under CUTPA. The statute also says it doesn't apply to, or permit, any surcharge the older law prohibits. Advertise the real all-in price and keep card fees off the bill.
Can my Connecticut shop stop taking cash?
Generally not. All retailers must accept cash unless an exemption applies, and you can't post no-cash signs or charge cash buyers more. Exemptions include phone, mail and online sales, parking lots and garages, membership warehouse clubs, and locations with no staff to help customers in person. A cash-to-prepaid-card device that meets the statute's conditions can also satisfy the law.
What if I can't make exact change for a cash customer?
Round down. In a January 13, 2026 advisory about the national penny shortage, the Department of Consumer Protection told businesses that can't make exact change to round the total down to the nearest five cents. Its example: a $19.97 total becomes $19.95. Rounding up would charge a cash buyer more, which Connecticut law doesn't allow.
What sales tax rate do Connecticut businesses charge?
6.35% on most goods and taxable services, and no city or town adds a local sales tax. Meals and certain beverages are taxed at 7.35%, which is the 6.35% rate plus an extra 1% that took effect October 1, 2019. Hotel rooms carry a separate 15% room occupancy tax.
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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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