Credit card processing and merchant services in Newark, NJ
Newark is an Urban Enterprise Zone city, so a certified business can charge half the usual sales tax on qualifying sales. A card surcharge here cannot exceed what processing actually costs you.
Newark is one of New Jersey's Urban Enterprise Zone municipalities, and that gives some local businesses a sales tax rate most of the state doesn't get. A business certified in the UEZ program collects 3.3125%, half the standard 6.625%, on most qualifying sales of tangible goods made at its zone location. Every business without certification charges 6.625%, and so do certified ones on sales that don't qualify. If you're certified, your POS may need both rates, with each item mapped to the right one.
The city is a large market. The Census Bureau estimated 323,808 residents on July 1, 2025, and the 2022 Economic Census counted $10.39 billion in retail sales and $1.02 billion in accommodation and food services sales in Newark.
Card fees follow New Jersey's 2023 surcharge law. A credit card surcharge can't exceed your actual cost to process the payment, and you have to disclose it before the customer incurs any charge: signs at the point of entry and the point of sale, or for a restaurant, in the customer service area and on the menu. Proving that cost is hard on a statement with one blended rate. It gets much easier when interchange and the processor's markup are listed separately, which is how interchange-plus pricing works.
Cash isn't optional for in-person retail sales. State law bars sellers from refusing cash or requiring credit, with civil penalties of up to $2,500 for a first offense. Phone, mail and online sales fall outside the rule.
The New Jersey page has the statutes, and our Jersey City page covers the surcharge disclosure rules for restaurants in more detail. Before you set a surcharge percentage, send us a statement for a free statement review, and we'll work out your real cost per card type.
Rules that matter in Newark
Urban Enterprise Zone reduced sales tax
Newark is on the list of municipalities in New Jersey's Urban Enterprise Zone program. A business certified to collect the reduced rate charges 3.3125% on most qualifying sales of tangible personal property made at its location in the zone. Sales that don't qualify, and sales by businesses that aren't certified, take the standard 6.625% rate.
Sources: New Jersey Department of Community Affairs, Urban Enterprise Zone locations; New Jersey Division of Taxation, Urban Enterprise Zone
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Common questions
Does every Newark business charge 3.3125% sales tax?
No. Only businesses certified in the Urban Enterprise Zone program collect the reduced rate, and only on most qualifying sales of tangible personal property made at their zone location. Everyone else in Newark charges the standard 6.625%. Confirm your certification status before you change the rate in your POS.
How do I work out my actual processing cost for a New Jersey surcharge?
Add up the fees you paid on credit card transactions for a month and divide by your credit card volume. Say you paid $1,850 on $62,000 of credit sales: that's 2.98%, so a surcharge above that would exceed your cost. Leave debit out of the math, since debit can't be surcharged and usually costs less. An interchange-plus statement makes that split much easier.
Can a Newark store or restaurant refuse cash?
Not for in-person sales. New Jersey law requires retail sellers to accept cash and bars them from requiring credit, with fines of up to $2,500 for a first offense and $5,000 for a second. Phone, mail and internet orders are excluded, and the statute has narrow exceptions for some airport sellers, parking facilities and car rental companies.
Where does a Newark business have to post a surcharge notice?
Before the customer incurs any charge. The statute calls for signs at the point of entry and the point of sale, or for restaurants, in the customer service area and on the menu. Online, in an app or at a kiosk, disclose it before checkout, and tell phone customers out loud. Our surcharging program handles the disclosure setup.
More New Jersey cities besides Newark
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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