Is It Legal for a Business to Charge a Credit Card Fee?
Credit-card surcharges are allowed in most states with disclosure, banned in a few. Here's how the rules generally work.
It depends on your state. In most states businesses can add a 'surcharge' for paying by credit card if they disclose it clearly and follow card-network rules, but a few states and many local rules restrict or ban surcharges. Offering a discount for cash is generally allowed everywhere.
You've probably seen a sign adding a few percent for paying by card. Whether that surcharge is legal depends on where the business is and how it's disclosed.
Surcharges vs. cash discounts
There are two related practices. A surcharge adds a fee for paying by credit card. A cash discount lowers the price for paying with cash. Offering a cash discount is generally permitted everywhere; surcharges are the more regulated of the two.
The general rule on surcharges
In most states, businesses can charge a credit-card surcharge if they clearly disclose it before the sale and comply with the card networks' rules (which cap the amount and require posting and itemizing the fee). A few states and some local jurisdictions restrict or prohibit surcharges, and debit-card surcharges are treated more strictly.
What to look for as a consumer
A lawful surcharge is typically posted at the entrance and register and itemized on your receipt. Surprise fees added without disclosure may violate state law or network rules. Rules have shifted in recent years, so the current position in your state is what matters.
This is general information
Surcharge law varies by state and changes over time. For a specific question — as a consumer or a business — check your state attorney general's guidance or consult a qualified attorney.
This is general information about common U.S. rules and practice. Rules differ by state, city and country and change over time — confirm with an official source for your area before you rely on it.
Frequently asked questions
Can a store charge extra for using a credit card?
Is a cash discount the same as a surcharge?
Can they surcharge a debit card?
Related answers
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