Credit card processing and merchant services in Minnesota
Minnesota caps credit card surcharges at 5% and spells out how to announce them in person, online and by phone. Its price transparency law also changes how you advertise fees.
Card surcharges
Allowed with limitsMinnesota allows credit card surcharges up to 5% with spoken and posted notice; Visa's 3% and Mastercard's 4% caps are lower.
Sales tax
6.875% state rate, plus local
Last checked
October 6, 2026
Unlike Iowa, Wisconsin and the Dakotas, Minnesota has its own surcharge statute, and it's specific. Minn. Stat. 325G.051 allows a credit card surcharge of up to 5% of the purchase price, but only with the right notice for each channel. In person, you tell the customer orally at the time of sale and post a sign on the premises. Online or in an app, you post a notice during the sale, at the point of sale, on the order summary or on the checkout page. On a phone order, you say it out loud. A seller that breaks the rule faces a civil penalty of up to $500 and must refund the surcharge to each buyer.
The 5% figure won't come into play for most merchants. Visa caps surcharges at 3% and Mastercard at 4%, both limited to your actual cost, so a business following network rules stays under the state limit. You'll sometimes see Minnesota's cap described as 4%. The statute says five percent.
The state's price transparency law, in effect since January 1, 2025, adds a second layer. Advertised and displayed prices have to include all mandatory fees and surcharges. The Attorney General's guidance says a credit card surcharge customers can reasonably avoid by paying cash isn't a mandatory fee, so it can stay out of the advertised price. If cash isn't an option at your business, plan on including the surcharge in the prices you advertise.
Sales tax starts at 6.875%, and the Department of Revenue says to add every local, special local and special tax that applies. Minneapolis layers several, and its page has the numbers.
Clearo's surcharging program covers the notices Minnesota requires, and interchange-plus pricing might lower your costs enough that you skip the surcharge. Our free statement review will show you which way to go.
What Minnesota merchants should know
The 5% surcharge cap and notice rules
Minn. Stat. 325G.051 lets a seller add a surcharge when a customer pays by credit card if the surcharge does not exceed 5% of the purchase price and the customer is told about it the right way:
- In person: orally at the time of sale and by a sign conspicuously posted on the premises.
- Online or on a mobile device: a conspicuous notice during the sale, at the point of sale, on the order summary or on the checkout page.
- By phone: orally.
A seller who violates the section is subject to a civil penalty of up to $500 and must refund the surcharge to each buyer.
Source: Minnesota Revisor of Statutes, 325G.051 Surcharges on credit cards
Card network limits are lower
Visa caps a credit card surcharge at the lower of your merchant discount rate or 3% and requires 30 days' written notice to your acquirer. Mastercard caps it at the lower of your average effective rate or 4%. Neither network allows surcharges on debit or prepaid cards, so in practice the network caps, not the state's 5%, set your ceiling.
Sources: Visa, U.S. Merchant Surcharge Q and A; Mastercard, Credit card surcharge rules and fees for merchants
Price transparency law
Since January 1, 2025, Minnesota's Deceptive Trade Practices Act requires advertised, displayed and offered prices to include all mandatory fees and surcharges. The Attorney General's FAQ says a credit card surcharge is optional, and need not be in the advertised total, when a consumer could reasonably avoid it by paying with cash. The FAQ also covers restaurant fees and automatic gratuities.
Sources: Minnesota Attorney General, Money, credit and price transparency; Minnesota Attorney General, Price transparency law FAQ (PDF)
How to figure Minnesota sales tax
To figure the rate, the Department of Revenue says to combine the 6.875% state general rate with all applicable local taxes, special local taxes and special taxes. Its online calculator finds the general state and local rate for any Minnesota address. Special local taxes, such as those on lodging, food and beverages, liquor, admissions and entertainment, are listed separately.
Sources: Minnesota Department of Revenue, Taxes and rates; Minnesota Department of Revenue, Sales tax rate calculator
Cities we cover in Minnesota
Payment services we provide
Guides worth reading next
All guidesFees and pricing
Amex OptBlue: what it is and how its pricing works
Amex OptBlue lets your payment provider sign you up for American Express and set your Amex rate. Who qualifies, how pricing works, and what to ask first.
Security and compliance
Credit card authorization form: template and safe handling
A credit card authorization form lets you charge a card when the customer isn't there. Copy our field-by-field template and follow PCI rules for storing it.
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
What is the maximum credit card surcharge in Minnesota?
State law allows up to 5% of the purchase price under Minn. Stat. 325G.051. The card networks set a lower ceiling: Visa caps surcharges at 3% and Mastercard at 4%, and neither lets you charge more than your actual cost. Debit and prepaid cards can't be surcharged at all.
How do I disclose a surcharge in Minnesota?
It depends on the channel. In person, tell the customer orally at the time of sale and post a conspicuous sign. Online, post a notice during the sale, at the point of sale, on the order summary or on the checkout page. On the phone, tell the customer orally. Visa also wants the amount on the receipt.
Does Minnesota's price transparency law ban surcharges?
No. The Attorney General says the law governs how fees are disclosed, not what a business can charge. A credit card surcharge customers can reasonably avoid by paying cash isn't a mandatory fee, so it doesn't have to be in the advertised price. Mandatory fees do.
What sales tax rate applies in Minnesota?
The state general rate is 6.875%. Add the local taxes, special local taxes and special taxes that apply where you sell. The Department of Revenue's calculator gives the general rate for any address; in Minneapolis, for example, it's 9.025% before special local taxes.
Other states we serve besides Minnesota
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- 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.
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.