Credit card processing and merchant services in Salem, OR
Salem businesses charge no sales tax and generally must accept cash. Once a firm's Oregon commercial activity reaches $750,000 in a year, the state's Corporate Activity Tax is the figure to plan for.
A Salem register has no sales tax line. Oregon doesn't have a general sales or use tax, so a $40 item rings up at $40. The Census Bureau estimated 181,779 people lived in Salem in July 2025, up 3.6% from its 2020 base.
That doesn't mean the state ignores your revenue. Oregon's Corporate Activity Tax is based on Oregon commercial activity, and its thresholds are what a growing Salem business needs to watch. You must register within 30 days of reaching $750,000 in commercial activity for the year. Above $1 million, you file a return, and the tax is $250 plus 0.57% of taxable Oregon commercial activity over $1 million. With $1.5 million in taxable commercial activity, that's $250 plus $2,850, or $3,100. At $750,000 or less, the CAT doesn't apply to you at all.
Cash is the other state rule a Salem storefront has to plan around. Under ORS 659A.410, a place of public accommodation generally can't refuse U.S. bills or coins, although it may turn down $50 and $100 notes and coin payments of $100 or more. Internet, phone and mail sales are exempt, so a Salem business that sells only through its website can take cards alone.
Card surcharges face no Oregon law that we found beyond the networks' rules: no more than your cost, notice before the customer pays, and nothing on debit or prepaid cards. Our Oregon page has the sources, and our Portland page covers that city's Clean Energy Surcharge.
Growing past the CAT thresholds usually means more card volume too, so a small rate difference grows with you. A free statement review tells you what each card payment costs you today, and our payment processing page explains how we price it.
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Common questions
Do Salem businesses charge sales tax?
No. The Oregon Department of Revenue says the state has no general sales or use tax, so your Salem terminals and online checkout shouldn't add one for in-state sales. If you ship to customers in states that do tax sales, check their rules for out-of-state sellers.
When does a Salem business have to register for Oregon's Corporate Activity Tax?
Within 30 days of reaching $750,000 in Oregon commercial activity for the year. A business at $750,000 or less is excluded from all CAT requirements. Above $1 million, you must file a return, and only businesses with more than $1 million of taxable Oregon commercial activity actually owe tax.
Can a Salem shop refuse $100 bills?
Yes. ORS 659A.410 lets a place of public accommodation refuse $50 and $100 bills and coin payments of $100 or more. It can't refuse smaller U.S. bills or coins, and it can't treat a customer differently for paying cash. Online, phone and mail orders are exempt from the rule.
Can Salem businesses add a credit card surcharge?
Yes, within the card networks' rules, since we found no Oregon law against them. Visa caps a surcharge at your merchant discount rate or 3% and wants 30 days' notice to your acquirer; Mastercard caps it at your average effective rate or 4%. Post notice, list it on the receipt, and leave debit and prepaid cards out.
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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