Many state laws allow for a business to charge a consumer an additional fee, called a surcharge, to pay by credit card. However, this is not allowed by law in any state for debit cards, even when the transaction is processed as “credit.”
Yes, you can expect to pay a fee for all debit transactions. The fees consist of a combination of the interchange and assessment fees that the card issuers and networks charge as well as service fees charged by your payment processor.
Surcharging is widely accepted in the US except in Maine, Massachusetts, Connecticut, and Puerto Rico. Illinois, Colorado, Georgia, Kansas, Texas, Nevada, New York, South Dakota, New Jersey, Minnesota, California, Florida, Oklahoma, Michigan, and Montana allow surcharging with certain contingencies.
Use cash where you can
The easiest way to avoid card surcharges is to pay by cash.
U.S. merchants cannot surcharge debit card or prepaid card purchases.
Under federal law, you have protections that help limit what you have to pay if your credit, ATM, or debit cards are lost or stolen. If someone uses your ATM or debit card before you report it lost or stolen, what you owe depends on how quickly you report it.
Why are small businesses charged debit card fees? Both debit and credit cards require sellers to pay a range of fees every time a transaction occurs because a lot of entities are involved whenever a card is used—and all of these entities want something in return for their services.
Penal Code 484g PC makes it a crime to fraudulently use another person's credit or debit card.
Because debit card surcharging is illegal for the most part, you may be wondering, “How can I offset costs in another way?” There are a couple of tried and tested ways for merchants to offset the cost of transaction processing fees outside of implementing surcharging.
Some debit cards are free to use, but some have fees.
Use a different payment method.
Merchants often charge convenience fees or surcharges when credit cards aren't a standard payment method. If you have a rent, utility or tax bill, consider paying by check or electronic transfer instead.
Average Debit Card Fees (2025)
The average interchange rate of an exempt debit transaction is 1.21% per transaction or $0.51. The average debit card interchange of a covered transaction is lower, at 0.47% or $0.23. All of these rates are significantly lower than the average credit card processing fees.
Businesses cannot impose any surcharge for using the following methods of payment: consumer credit cards, debit cards or charge cards. similar payment methods that are not card-based (for example, mobile phone-based payment methods)
Can you track someone who used your debit card online? While you can't personally track someone who used your debit card online, banks have systems to trace such activities. If you report the fraud, they can investigate the source and potentially work with law enforcement to find the perpetrator.
There may be fees for using your debit card. Examples: Some banks charge a fee if you enter a PIN (Personal Identification Number) to conduct a transaction instead of signing your name. You may trigger a fee if you overdraw your account using your debit card, just as you would if you "bounced" a check.
Credit cards offer flexibility to help you afford these purchases in the moment—but with a debit card, you can only cover those charges if the funds are in your bank account. Large purchases can be a hassle: Some debit cards have spending limits that can complicate efforts to make large purchases.
To report merchants charging excessive payment card surcharges, or surcharging debit and prepaid card transactions, consumers may visit www.visa.com or www.mastercard.com to fill out a Merchant Violation Form. Can cardholders be surcharged on both credit and debit card transactions? No.
Q: Is debit card surcharging legal? No, surcharging for debit card transactions is prohibited under the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The new regulations cap certain fees and give merchants more control in routing debit card transactions and in steering customers toward the payment methods that merchants prefer. Merchants and the payment card industry took opposing sides in the controversy over fees.
A debit card doesn't offer the same fraud protection
If a stranger were to find your debit card, they could essentially use all the money in your linked checking account. While you can get your money bank when you report debit card fraud, it may take time or you may not be reimbursed at all.
Debit cards come with both benefits and drawbacks. Debit card advantages include flexibility, security, and the ability to use them almost anywhere. Debit cards can help some consumers manage money. Debit card cons include a lack of features, such as cashback rewards and additional protections.
Typically, a server will drop the bill off at a table, then leave. Customers put their credit or debit cards on the table. The server returns, then collects the cards and takes them away from the table to a fixed POS terminal to swipe the card (or cards) and complete the transaction.