Do you have to display a credit card surcharge?

Asked by: Anderson Boehm  |  Last update: June 27, 2025
Score: 4.7/5 (27 votes)

Also, customers need to be informed that you will be applying a surcharge on their transaction amount. The rules state that your signs should be clear and visible, so customers don't have to look for them. Credit card surcharge signage should be plenty and large enough so that customers can't miss them.

How do I notify customers of credit card surcharges?

You may accomplish this by including the credit card surcharge on your invoice or displaying a sign at your office. If you're using an online payment solution, this notice should be automatically included on your payment page.

Do merchants have to disclose credit card fees?

Yes. U.S. merchants that surcharge must disclose the surcharge dollar amount on every receipt.

Is it legal to add a credit card surcharge?

California Senate Bill 478, part of the Consumer Legal Remedies Act, bans all “junk fees” on purchases across California. This includes credit card surcharges in most situations.

Can I pass on credit card fees to customers?

Credit card surcharges allow merchants to pass on processing fees to customers who pay with credit cards. These surcharges are legal in most US states, although some states still have restrictions or outright bans.

Adding Credit Card Fees to invoices in QuickBooks Online

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Can you pass on fees to customers with Square?

With Square's automatic card surcharge beta, you can pass on processing fees associated with card payments.

Can my business add a surcharge for card paying customers?

There is no prohibition for credit card surcharges and no statute on discounts for different payment methods. Merchants can impose a surcharge as long as it doesn't exceed the cost of the merchant's processing fee. Merchants may offer discounts for payment by cash, check or other methods unrelated to credit cards.

How do you explain surcharges to a customer?

A surcharge is an additional fee that a business imposes on a customer when they use a credit card for payment. This fee helps cover the costs associated with processing credit card transactions (such as merchant fees or payment gateway charges) by passing them down to the consumer.

How to avoid card surcharge?

Use cash where you can

The easiest way to avoid card surcharges is to pay by cash. While businesses can charge a surcharge for paying by debit or credit cards, they can't charge a surcharge for paying by cash. BCU Bank customers have fee-free access to hundreds of ATMs across Australia through the atmx network.

What is the no surcharge rule?

The No-Surcharge Rule (NSR). The NSR means that a merchant charges at most the same amount for a payment card1 transaction as for cash. If the merchant decides to apply a discount for payments in cash that discount cannot be extended to any specific card brand.

What is the difference between a surcharge and a convenience fee?

A surcharge is not a convenience fee. A convenience fee is levied by a merchant for offering customers the privilege of paying with an alternative non-standard payment method. Merchants can process convenience fees in all 50 states. A surcharge is levied by a merchant for customer purchases made with a credit card.

What is the wording template for credit card surcharge fee?

We impose a surcharge of ____________% on the transaction amount on Visa credit card products, which is not greater than our cost of acceptance. We do not surcharge Visa debit cards.

What are the new credit card laws for 2024?

Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

How do I report a merchant surcharge?

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.

Can a business charge a fee for using a debit card?

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.”

Do merchants have to notify consumers of credit card surcharges?

Credit card surcharges are generally permissible in the United States. These surcharges are added to credit card transactions to cover processing fees. The surcharge amount is typically a percentage of the transaction. Businesses must inform customers about the surcharge before the transaction.

What states do not allow credit card surcharges?

Surcharging is widely accepted in the US except in Maine, Massachusetts, Connecticut, and Puerto Rico.

How do I inform customers of credit card processing fees?

Businesses must clearly and conspicuously notify customers about convenience fees before the transaction is completed. This can be done through ample signage in-store, clear messaging during online checkout, or verbally over the phone.

Can you pass along credit card fees to customers?

There are a few ways of legally passing on credit card fees to customers. Some are direct, and some are indirect. Adding a surcharge to cover the credit card fee is the more direct method while incentivizing cash payments is indirect.

Is it illegal to make customers pay credit card fees?

In 1985, California passed a law (Civil Code section 1748.1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash.

Who should pay credit card surcharge?

A credit card surcharge fee is an additional charge imposed by businesses when customers choose to pay with a credit card. It aims to offset the transaction fees incurred by merchants from credit card companies, potentially affecting the total cost of purchases.

Can I charge a credit card fee with Square?

Credit card fees are included in Square's fees, so there are no charges from credit card companies. Every card brand accepted has the same rate. Payment processing fees are taken out of the total amount of each transaction, including tax and tip.

Can Square automatically add surcharge?

How does a surcharge work? You can set up a card surcharge to be manual or automatic. For manual, you add the surcharge during the sale. For automatic, you set it up from your dashboard to automatically apply to each card sale you make.

Are debit card surcharges legal?

In most cases, yes—it's legal to surcharge credit cards. According to federal law, there's a 4% maximum allowable surcharge on credit card transactions. Debit card surcharging is illegal in all 50 states.