Credit card processing and merchant services in South Dakota

South Dakota has no surcharge statute, but its Consumer Protection office publishes guidance on surcharges, and it's worth reading closely. The page describes the 2013 court settlement between retailers and the card industry. Under it, a surcharge can't exceed what the merchant actually pays to accept credit cards, and it applies to credit cards only, not debit or prepaid. The disclosure has to give the amount, say that the merchant is charging it and say that it doesn't exceed the merchant's cost, and the dollar amount has to appear on the receipt.

One figure on that page needs an update. It says a surcharge can add as much as 4% to a credit card purchase, the maximum allowed. Mastercard's cap is still 4%, but Visa's is now 3% or your cost, whichever is lower, so a 4% surcharge on a Visa card breaks Visa's rules regardless of what the state page says. Plan around 3% if you take Visa.

Sales tax starts at 4.2%, the state sales and use tax rate. South Dakota municipalities may impose a municipal sales tax, a use tax and a gross receipts tax, so a business inside city limits can owe more than the state rate. Check your city before setting up a terminal, and check again if you open a second location.

Clearo's pricing is interchange-plus, month to month, and every account has a dedicated rep. If you decide to surcharge, our surcharging program builds in the disclosures, and a free statement review can show whether you need one at all.