Credit card processing and merchant services in Ann Arbor, MI
Ann Arbor businesses charge Michigan's flat 6%, with no city or county rate to add. For studios, practices and firms that bill every month, the real work is in how card-on-file payments run.
Tax setup in Ann Arbor takes about a minute. Michigan's sales tax is 6%, and the Department of Treasury says the state doesn't allow cities or other local units to impose a sales or use tax. A taxable sale in Ann Arbor carries the same rate it would anywhere else in Michigan, so one setting covers every register and your online store.
That leaves more attention for how you get paid, and for many service businesses the answer is recurring. A fitness studio selling monthly memberships and an accounting firm on retainer have the same problem: they charge a card on file over and over, and every declined charge is money someone has to chase.
Recurring billing in our virtual terminal runs those charges on a schedule, and a payment link or emailed invoice handles one-off balances. Our wellness and fitness and professional services pages explain how each kind of business sets that up.
Thinking about a card fee on memberships? Michigan law doesn't stop you, the Attorney General says, but Visa and Mastercard do set limits. The fee can go on credit cards only, it can't top 3% on Visa or 4% on Mastercard or exceed your cost, and members have to be told before they pay, which for a membership means at sign-up. The Michigan page has the sources.
Ann Arbor had 122,233 residents in the Census Bureau's July 1, 2025 estimate. We price every account on interchange-plus, with no long-term contract and no cancellation fee, and a free statement review shows what your recurring charges are costing you today.
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.
Fees and pricing
Mastercard interchange rates: reading the US schedule
Mastercard interchange rates sit in one US schedule. How it's organized by card tier and program, 2026-2027 example rates, and how to check your statement.
Hardware and POS
Google Pay for business: in-store, online, and in-app setup
Google Pay for business: how to take it at the counter, on your website, and in an Android app, what Google charges, and what each sale really costs you.
Common questions
Does Ann Arbor have its own sales tax?
No. The Michigan Department of Treasury says the state doesn't allow cities or other local units to impose a sales or use tax. Ann Arbor businesses charge the 6% state rate on taxable sales, like every other business in Michigan.
How can an Ann Arbor studio bill monthly memberships by card?
Use recurring billing to charge each member's card on file on a set schedule, and send a payment link when a charge fails or a member owes a one-off fee. The virtual terminal is where you set that up, and our recurring billing guide explains how card-on-file payments work.
Can I add a surcharge to membership dues in Ann Arbor?
Michigan law allows it, according to the Attorney General, but the card networks limit it: credit cards only, no more than your cost, and caps of 3% on Visa and 4% on Mastercard. Members paying with debit can't be surcharged. Tell members about the fee when they sign up, before the first charge.
What could an Ann Arbor practice save on card processing?
It depends on your card mix and how payments come in, since keyed and card-on-file payments usually cost more than tapped ones. As an example, a practice processing $20,000 a month that moves from a 3.3% effective rate to 2.8% saves $100 a month. A free statement review does that math with your Ann Arbor practice's own statement.
More Michigan cities besides Ann Arbor
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.
Let's talk about your payments
Tell us about your business and how you take payments now, and a Clearo rep will reach out within one business day.