To report a business for illegally charging a fee on a debit card, file a complaint with the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Additionally, report the merchant directly to your card issuer (Visa or Mastercard) and your state Attorney General.
If you believe a merchant is improperly charging customers or otherwise engaging in false or misleading sales practices, you should file a complaint with the Attorney General's Office. The Office uses complaints to learn about misconduct.
Yes, it is generally illegal for U.S. merchants to charge an extra fee (surcharge) on debit card purchases, with major card networks prohibiting it, reinforced by federal law (Durbin Amendment) and various state laws, though some states have specific bans or restrictions, making it a complex area where merchants often illegally pass on costs as surcharges or convenience fees.
To file a report with Visa
Visit https://usa.visa.com/Forms/visa-rules.html. Fill out the form with the requested information about yourself and the merchant. Complete the Incident details section. Provide any additional information about what happened, then select Submit.
Yes, businesses can generally charge a credit card fee (surcharge) in most US states, but it's complex, requiring adherence to card network rules (like limits and disclosure) and state laws, with surcharging banned in a few states (e.g., CT, MA, OK, ME), and requiring upfront notification and capping fees at the actual processing cost (usually 1-4%).
a detailed description of the goods or services you paid for (e.g. colour, brand, size of goods), and estimated delivery dates. what has gone wrong with the goods or services delivery. proof of the return of goods to the retailer, if they are faulty.
No. The ability to surcharge only applies to credit card purchases, and only under certain conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.
Yes, it is generally illegal for U.S. merchants to charge an extra fee (surcharge) on debit card purchases, with major card networks prohibiting it, reinforced by federal law (Durbin Amendment) and various state laws, though some states have specific bans or restrictions, making it a complex area where merchants often illegally pass on costs as surcharges or convenience fees.
Surcharges can incentivize customers to use alternative, less expensive payment methods such as cash or debit cards, which can result in lower overall transaction fees for businesses.
State-by-State Legality
As of June 2025 surcharges are prohibited or restricted in the following: California. Connecticut. Maine.
Yes, it is generally illegal for U.S. merchants to charge an extra fee (surcharge) on debit card purchases, with major card networks prohibiting it, reinforced by federal law (Durbin Amendment) and various state laws, though some states have specific bans or restrictions, making it a complex area where merchants often illegally pass on costs as surcharges or convenience fees.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Convenience fees can be up to 3% of the transaction amount, which may seem small but can significantly impact profitability over time. For example, a company processing $1 million annually could face $30,000 in additional fees. Understanding these fees and their impact is crucial for maintaining profitability.
However you do business, there are simple ways to accept credit card and debit payments:
A ghost card payment uses a digital, multi-use virtual card created for specific vendors or departments, not people, allowing businesses to automate recurring expenses like software subscriptions or supplier bills with built-in spending controls, all consolidated onto a single account statement without issuing physical cards. They are "ghost" because they have no physical form, existing only as a 16-digit number, offering enhanced security and tracking compared to traditional cards.
There is no prohibition for credit card surcharges and no statute on discounts for different payment methods. Merchants can impose a surcharge of up to 4 percent as long as it doesn't exceed the cost of the merchant's processing fee. There is no statute on discounts for different payment methods.
The average processing fee for debit card transactions is 34 cents in interchange plus your processor's markup.
Can You Be Sued for a Chargeback? Yes, a merchant can sue if they believe your chargeback was fraudulent. They may take the case to small claims court to recover their funds.
Yes, chargeback claims can be denied. The retailer or company you have made your chargeback claim against has the right to dispute it. If your claim is rejected, you should be told why. If you're unhappy with the decision and think it was unfair, you can complain to your bank.
Yes, merchants absolutely win chargeback disputes, but it depends heavily on having strong, organized evidence to prove the transaction was valid and service/product was delivered, with win rates averaging around 20-30%, sometimes higher with good preparation. Winning requires detailed records, proof of delivery (signatures, GPS), customer communication, and clear terms, though results vary by dispute type (fraud vs. "friendly fraud") and card network.