Credit card processing and merchant services in Cambridge, MA
Cambridge, Massachusetts stores that hand out a checkout bag must charge at least 10 cents for it and show it on the receipt. A credit card surcharge can't go on that receipt, because state law bans it.
In Cambridge, Massachusetts, a city of an estimated 122,588 people as of July 1, 2025, a City ordinance decides one line on a shop's receipts. Under the Bring Your Own Bag ordinance, in effect since March 31, 2016, a retail establishment that provides a recyclable paper, reusable or compostable plastic bag at checkout must charge at least 10 cents for each one. The store keeps the money, and the charge has to be stated separately on the customer's receipt.
On a POS, that means a bag item with its own price, not a few cents folded into the total. The 10-cent figure dates from the ordinance's 2016 start, so check the City's current rules before you set the amount.
A bag charge is fine. A charge for paying by card is not: Massachusetts bars any seller from adding a surcharge when a customer pays by credit card. The lawful route runs the other way, with a lower price for cash or check. Under the Attorney General's junk fee rules, any price you show has to be the total, mandatory fees included. And retail counters have to take cash.
Hotels carry a fee most Massachusetts cities don't. The Department of Revenue lists Cambridge among six cities where room occupancy carries a 2.75% convention center financing fee, added to the 5.7% state excise and any local option excise. All of it goes on one monthly return.
Since you can't pass card costs on as a fee, the rate you pay is the number to work on. We price on interchange-plus, so each card's real cost is visible, and a free statement review shows where you stand now. Statutes and sources for the state rules are on our Massachusetts page, and our retail page covers payments for shops.
Rules that matter in Cambridge
Cambridge's 10-cent checkout bag charge
Under Cambridge's Bring Your Own Bag ordinance (Ordinance 1366), a retail establishment that provides a recyclable paper bag, a reusable bag or a compostable plastic bag at checkout must charge at least 10 cents for each one. The store keeps the charge, and it has to be stated separately on the receipt given to the customer at the time of sale.
The City's business checklist gives the effective date as March 31, 2016 and sets a standard for each bag type: reusable bags need handles and a thickness of at least 3.0 mils, and paper bags must be 100% recyclable with at least 40% post-consumer recycled content. Check the City's current rules before you set your price.
Sources: City of Cambridge, Ordinance 1366: Bring Your Own Bag (PDF); City of Cambridge, Bring Your Own Bag ordinance business checklist
Cambridge's 2.75% convention center fee on room stays
The Department of Revenue lists Cambridge with Boston, Chicopee, Springfield, West Springfield and Worcester as the six Massachusetts cities where a 2.75% convention center financing fee applies to room occupancy. Hotels and other lodging operators in Cambridge charge it in addition to the 5.7% state room occupancy excise and any local option excise. The fee and the excises are paid together on a monthly return due by the 30th day after the month ends.
Sources: Mass.gov, Room occupancy excise tax; Massachusetts Department of Revenue, Form RO-2 instructions: Room occupancy tax return
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Common questions
What is the minimum bag charge at a store in Cambridge, MA?
10 cents a bag. Cambridge's Bring Your Own Bag ordinance requires a store that provides a recyclable paper, reusable or compostable plastic bag at checkout to charge at least that much for each one, and the store keeps the money. The rule has been in effect since March 31, 2016, so confirm the City hasn't changed the amount before you program your POS.
Is the Cambridge bag charge the same as a credit card surcharge?
No. The bag charge is the price of a bag, required by a City ordinance, and it applies whether the customer pays with cash or a card. A surcharge is an extra amount for paying by credit card, and Massachusetts law bars sellers from adding one. Ring the bag up as its own item and never label it as a card fee.
How much does the convention center fee add to a Cambridge hotel bill?
2.75% of the room charge. On a $300 night, that's $8.25, on top of $17.10 in 5.7% state room occupancy excise and any local option excise. The Department of Revenue lists Cambridge as one of six Massachusetts cities with the fee, and all of it is paid on one monthly return.
How can a Cambridge, Massachusetts business offset card fees without a surcharge?
In two ways the law allows. You can price to cover your card costs and give customers who pay cash or by check a discount, which card issuers can't stop you from offering. Or you can pay less to process: interchange-plus pricing shows each card's real cost, and a free statement review tells you how your current rate compares.
What kinds of bags can a Cambridge store give out at checkout?
The City's checklist for the bag ordinance sets a standard for each type. A reusable bag needs handles and a thickness of at least 3.0 mils, a paper bag must be 100% recyclable with at least 40% post-consumer recycled content, and a compostable bag must be BPI certified. Whichever you use, the customer pays at least 10 cents for it.
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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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