Credit card processing and merchant services in Fargo, ND
Fargo's city sales tax went to 2.25% on April 1, 2025. With Cass County's 0.5% and the 5% state rate, most taxable sales in Fargo now carry 7.75%.
If your Fargo terminals were set up before April 2025, check them. The city's sales tax rate became 2.25% on April 1, 2025, according to the notice the North Dakota Office of State Tax Commissioner issued to Fargo permit holders. Add Cass County's 0.5% and the 5% state rate, and the general combined rate in Fargo is 7.75%.
A rate change is easy to miss on a system someone else installed. Pull a recent receipt and test one taxable item: a $40 sale should show $3.10 in tax. If it doesn't, update the tax setting on your POS terminals and in any online checkout that charges Fargo's rate.
Fargo had 136,275 residents as of July 1, 2025, by Census Bureau estimate, and it sits on the Minnesota line. A location across the river in Moorhead is in Minnesota and follows Minnesota's rules, including a state surcharge law; our Minnesota page has them. On the Fargo side, North Dakota has no surcharge statute, so Visa's 3% and Mastercard's 4% caps set the limit, debit and prepaid cards are excluded, and the fee has to be disclosed before the sale and shown on the receipt. The North Dakota page has the sources.
Processing costs deserve the same receipt-level check. Suppose a Fargo shop runs $35,000 a month through its terminals. Cutting its effective rate by 0.35% keeps about $122 a month, or roughly $1,470 a year, and no customer sees a different price. Interchange-plus pricing makes that kind of cut visible, because the card networks' cost and our markup appear as separate lines. Send a recent statement for a free statement review and we'll work out your number.
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Common questions
What is the sales tax rate in Fargo?
7.75% on most taxable sales: North Dakota's 5% state rate, Fargo's 2.25% city rate and Cass County's 0.5%. The city's rate has been 2.25% since April 1, 2025, according to the State Tax Commissioner's notice to Fargo permit holders.
How can I tell if my Fargo terminal has the current tax rate?
Ring up a taxable test item and look at the tax line. At 7.75%, a $40 item should carry $3.10 and a $100 item $7.75. A smaller figure usually means the terminal still has an older city rate, so fix the setting before your next sale.
Do North Dakota rules apply to a Moorhead location?
No. Moorhead is in Minnesota, so that location follows Minnesota's sales tax and its surcharge statute, which allows credit card surcharges up to 5% with notice. Visa's 3% cap and Mastercard's 4% cap are lower and still apply. Our Minnesota page has the details.
Can a Fargo business add a credit card surcharge?
Yes. North Dakota has no surcharge statute, so the card networks set the terms: up to 3% on Visa and 4% on Mastercard, capped at your cost, credit cards only. Visa requires 30 days' written notice to your acquirer, and customers need to see the fee at the entrance, at checkout and on the receipt.
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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