Credit card processing and merchant services in Maryland
Maryland's cash law for essential goods took effect October 1, 2026, and the state sets no surcharge cap of its own. We help Maryland merchants follow both and pay less per transaction.
Card surcharges
Surcharging allowedNo Maryland law caps surcharges (there's no 4% state cap); Visa's 3% and Mastercard's 4% caps still apply.
Sales tax
6% state rate
Last checked
October 6, 2026
The newest rule for Maryland merchants started on October 1, 2026. Chapter 714 of 2026, passed as HB 191, covers essential consumer goods bought in person, such as food, beverages, personal hygiene products, health products and fuel. Between 6 a.m. and 10 p.m., a merchant selling those goods can't refuse cash, insist on a credit or debit card, or charge more to a customer who pays cash. It applies to transactions under $300, lets you turn away bills larger than $20, and leaves out phone, mail and online orders as well as vending machines and kiosks.
So if your grocery, pharmacy or convenience counter went card-only, it needs a cash drawer again. The bill's synopsis makes a violation an unfair, abusive or deceptive trade practice.
Surcharges are a different story. Maryland has no statute that caps them, whatever you may have read about a 4% state limit. Commercial Law Sec. 12-509 only guarantees your right to offer a cash discount. That leaves the card networks in charge: Visa's cap is 3% and Mastercard's is 4%, neither lets the fee exceed your own cost, and neither allows one on debit cards.
Sales tax is 6%, with 9% on alcoholic beverages. Since July 1, 2025, a 3% rate also applies to data and information technology services, which matters if you bill for IT, data or software publishing work.
We price Maryland accounts on interchange-plus with no long-term contract, so the cost behind any surcharge or cash discount is spelled out line by line. City notes are on our Baltimore page, or you can start with a free statement review.
What Maryland merchants should know
Credit card surcharges in Maryland
No Maryland statute bans or caps credit card surcharges. Commercial Law Sec. 12-509 says a seller may offer a cash discount to consumers who pay cash, notwithstanding any agreement with a card issuer; it does not set a 4% cap. The card network rules apply:
- Visa: Maryland merchants can surcharge up to their merchant discount rate or 3%, whichever is lower, once they give their acquirer 30 days' written notice.
- Mastercard: a Maryland business can't go past its average effective merchant discount rate or 4%.
- No surcharges on debit or prepaid cards.
- In Maryland, post the surcharge at the point of entry and the point of sale, and print it on every receipt.
Sources: Maryland Code, Commercial Law Sec. 12-509; NCSL, Credit or debit card surcharges statutes (table last updated 2016); Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Merchant surcharge rules (US)
Cash for essential consumer goods (from October 1, 2026)
Chapter 714 of 2026 (HB 191) bars a merchant, between 6 a.m. and 10 p.m., from refusing a cash payment for an essential consumer good, requiring a credit or debit card for it, or charging more for paying cash. It covers in-person transactions under $300. A merchant may refuse bills larger than $20 or offer a device that converts cash to a prepaid card, and phone, mail, internet, vending machine and kiosk transactions are excluded. A violation is an unfair, abusive or deceptive trade practice.
The Department of Legislative Services' fiscal note lists the goods covered (food, beverages, personal hygiene and health products, and fuel) and further exceptions, such as food or beverages for on-premises consumption. Check the enacted text against what you sell.
Sources: Maryland General Assembly, HB 191 (2026), Retail transactions for essential consumer goods: cash payments; Maryland Department of Legislative Services, Fiscal and policy note for HB 191 (2026) (PDF)
Sales tax in Maryland
Maryland's sales and use tax rate is 6%, and alcoholic beverages are taxed at 9%. Since July 1, 2025, sales of data or information technology services are taxed at 3%.
Sources: Comptroller of Maryland, Sales and use tax; Comptroller of Maryland, Technical Bulletin 56: Sales and use tax on data or information technology services (PDF)
Cities we cover in Maryland
Payment services we provide
Guides worth reading next
All guidesSurcharging and cash discount
Dual pricing: what it is and how it differs from surcharging
Dual pricing posts a card price and a cash price for every item. How it differs from surcharging and cash discounts, which rules apply, and how to display it.
Security and compliance
Credit card skimmers: how to spot and stop them
What a credit card skimmer looks like on terminals, gas pumps, and ATMs, how to inspect your devices, what PCI DSS asks for, and how chip and tap cut the risk.
Fees and pricing
Why small business credit card processing fees run higher
Why small business credit card processing fees take a bigger cut of each sale: volume tiers, flat-rate markups, fixed fees and contracts, with the math.
Common questions
Does Maryland cap credit card surcharges at 4%?
No. Commercial Law Sec. 12-509 only says a seller may offer a cash discount despite any agreement with a card issuer, and it sets no surcharge cap. The 4% figure is Mastercard's network cap; Visa's is 3%. Both networks also limit a surcharge to your cost of acceptance and bar it on debit and prepaid cards.
Do I have to accept cash in Maryland?
If you sell essential consumer goods in person, yes, since October 1, 2026. Between 6 a.m. and 10 p.m. you can't refuse cash, require a card, or charge more for cash on those purchases under $300. You may refuse bills over $20, and phone, mail, online, vending machine and kiosk sales are excluded.
Which goods count as essential under the new cash law?
The Department of Legislative Services' fiscal note lists food, water and other beverages, personal hygiene products such as toiletries and cleaning products, health products such as medicine and medical supplies, and fuel. It also lists exceptions, including food or drink for on-premises consumption, so compare the enacted text with what you sell.
What sales tax rates apply in Maryland?
The general sales and use tax rate is 6%, alcoholic beverages are taxed at 9%, and since July 1, 2025 a 3% rate applies to data and information technology services. Set each category up as its own tax code in your POS or billing system.
Can I offer a cash discount instead of a surcharge?
Yes. Sec. 12-509 protects a seller's right to offer a cash discount even if a card issuer agreement says otherwise. If you sell essential goods, the new cash law also bars charging cash customers more, so a discount for cash fits both rules.
Other states we serve besides Maryland
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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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