Credit card processing and merchant services in Massachusetts
Massachusetts bans credit card surcharges, requires stores to take cash, and has the Attorney General's junk fee rules on how you show prices. We help you cut card costs within all of them.
Card surcharges
Surcharging prohibitedMassachusetts bans credit card surcharges; a discount for paying cash or check is the lawful alternative.
Sales tax
6.25% state rate
Last checked
October 6, 2026
Massachusetts bans credit card surcharges outright. The statute is short: no seller may impose a surcharge on a cardholder who pays by credit card instead of cash, check or similar means. The same section stops card issuers from blocking cash discounts, so a lower price for cash or check is the lawful way to reflect what cards cost you. A separate law makes every retail establishment accept legal tender, which rules out a card-only counter as well.
Since September 2, 2025, the Attorney General has enforced junk fee regulations (940 CMR 38.00). Whenever you show a price, it has to be the total price, including any mandatory fees, and it has to appear before you ask a customer for personal information. For other charges you must disclose what they are, what they're for and how much they cost, and say whether they're optional. For an online checkout or booking flow, that can change what the first price screen shows.
The sales tax rate is 6.25%. Restaurant meals carry the same 6.25%, plus a 0.75% local meals excise in cities and towns that have adopted it, for 7% in total. If you have restaurants in more than one town, check each town's status before you set the rate.
Since you can't pass card costs on as a fee, it pays to know exactly what they are. We price on interchange-plus, so each network fee and our margin show up separately, and a free statement review will flag anything you shouldn't be paying. City details are on our Boston, Worcester, Springfield, Cambridge, Lowell and Brockton pages.
What Massachusetts merchants should know
Credit card surcharges are banned
Under Mass. Gen. Laws ch. 140D, Sec. 28A, no seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card instead of paying by cash, check or similar means. The same section bars card issuers from preventing a seller from offering a discount to customers who pay by cash, check or similar means.
Source: Massachusetts General Laws, Chapter 140D, Section 28A
Cash acceptance in Massachusetts
Chapter 255D, Sec. 10A bars a retail establishment from discriminating against a cash buyer by requiring the use of credit, and it requires every retail establishment to accept legal tender when a buyer offers it as payment.
Source: Massachusetts General Laws, Chapter 255D, Section 10A
Junk fee regulations (enforceable since September 2, 2025)
The Attorney General's regulations at 940 CMR 38.00 require businesses to disclose the total price of a product, including any mandatory charges or fees, whenever pricing information is presented and before asking for personal information. Businesses must also disclose the nature, purpose and amount of other charges and whether a charge is optional. The Attorney General began enforcing the rules on September 2, 2025.
Sources: Massachusetts Attorney General, AG Campbell releases junk fee regulations (March 3, 2025); Massachusetts Attorney General, 940 CMR 38.00: Unfair and deceptive fees (PDF)
Sales tax and the meals tax
The Massachusetts sales tax is 6.25%. Restaurant meals are taxed at 6.25%, and a city or town may adopt a 0.75% local option meals excise, which brings the effective rate on meals to 7% there.
Sources: Massachusetts Department of Revenue, Learn about sales and use tax; Massachusetts Department of Revenue, Sales tax on meals
Guides worth reading next
All guidesSurcharging and cash discount
Cash discount program: how it works and when it's legal
A cash discount program posts your card price and takes money off for cash. Learn how it works, what keeps it legal, and the surcharge trap to avoid.
Surcharging and cash discount
Free credit card processing: what it really costs
Free credit card processing usually means customers pay the card fee through a surcharge or cash discount. See who pays, the legal limits, and the costs.
Fees and pricing
Visa interchange rates: how to read Visa's US schedule
Visa interchange rates come from one public US schedule. How it's organized, the April 2026 rates small businesses see most, and how to check your statement.
Common questions
Can Massachusetts businesses add a credit card surcharge?
No. Mass. Gen. Laws ch. 140D, Sec. 28A says no seller may impose a surcharge on a cardholder who chooses to pay by credit card instead of cash, check or similar means. You can offer a discount for paying cash or check instead; the same section bars card issuers from prohibiting that.
Can my Massachusetts store stop accepting cash?
No. Chapter 255D, Sec. 10A says a retail establishment can't require buyers to use credit and must accept legal tender when a buyer offers it. Plan for a cash drawer at every in-person checkout.
What do the junk fee regulations mean for my prices?
Since September 2, 2025, 940 CMR 38.00 has required you to show the total price, including mandatory fees, whenever you present a price and before you ask for personal information. You also have to disclose the nature, purpose and amount of any other charges and whether they're optional. Check menus, quotes and your online checkout against that.
What sales tax rate applies to restaurant meals in Massachusetts?
6.25%, plus a 0.75% local option meals excise in cities and towns that adopted it, for 7% there. Other taxable goods carry the 6.25% sales tax. Check whether your city or town has adopted the local excise before you set your POS.
Other states we serve besides Massachusetts
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- 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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