Credit card processing and merchant services in Portland, ME
Portland's restaurants and inns charge 8% on prepared food and 9% on lodging, and Maine law keeps a card fee off the bill whether the guest pays by credit or debit.
Food and lodging carry real weight in Portland. The 2022 Economic Census counted $623.4 million in accommodation and food services sales in a city the Census Bureau puts at 69,911 residents (July 1, 2025 estimate). If you run a restaurant, an inn, or a shop that also pours coffee, your POS is probably juggling more than one tax rate.
Maine Revenue Services lists 5.5% for general sales, 8% for prepared food and 9% for rentals of lodging. Give each its own tax code and map every menu item and room type to the right one. Picture an inn with a small shop and a cafe: the mug is taxed at 5.5%, the room at 9% and the sandwich at 8%, and a single default rate would get two of the three wrong.
Then comes the card fee question, and in Maine the answer is short. Title 9-A, Sec. 8-509 bars a seller from adding a surcharge when a customer pays by credit or debit card, so a "3% card fee" line has no place on a Portland check. A discount for paying with cash or a check is allowed, as long as the regular price is the one customers see first. Our Maine page covers the 2025 bill that tried to lift the ban and failed in committee.
That leaves the processing cost itself. Debit is usually the cheapest card you take: for cards from banks with $10 billion or more in assets, federal Regulation II caps interchange at 21 cents plus 0.05% of the sale, plus a 1 cent fraud-prevention adjustment. Credit costs more, and your mix of the two drives your bill. With interchange-plus pricing both show up on one statement, line by line, and a free statement review will show where the money goes each month.
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Common questions
Can a Portland restaurant add a fee for paying by card?
No. Maine law bars sellers from adding a surcharge when a customer pays by credit or debit card instead of cash, check or similar means. You can build card costs into your menu prices and take a discount off for cash or check, provided the regular, card-paying price is clear from the start.
What tax does a Portland inn charge on a room and a meal?
Maine Revenue Services lists 9% for rentals of lodging and 8% for prepared food, so an inn with a dining room needs both rates set up. Anything else you sell, such as gifts at the front desk, generally takes the 5.5% general rate. Short-term auto rentals carry 10% if you offer those.
How much does a debit card cost a Portland coffee shop?
For debit cards from banks with $10 billion or more in assets, Regulation II caps interchange at 21 cents plus 0.05% of the sale, plus a 1 cent fraud-prevention adjustment. On a $6 order that's about 22 cents, a big share of a small ticket. Processor markup comes on top, which is why it pays to see it itemized on an interchange-plus statement.
Will Maine allow card surcharges any time soon?
Not as of our October 2026 check. LD 151, a 2025 bill that would have let businesses surcharge credit and debit card payments, was reported Ought Not to Pass in committee in May 2025, and the ban in Title 9-A, Sec. 8-509 still stands. Watch the Legislature's site for new bills before you change your pricing.
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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