Why am I being charged a convenience fee?

Asked by: Lorine Harvey  |  Last update: February 3, 2026
Score: 4.4/5 (30 votes)

The fee is typically a fixed amount or a percentage of the sale. Convenience fees are charged by businesses to cover the cost they pay to payment processing companies for when a customer pays by credit card. A convenience fee is different from a surcharge, which is a charge simply for just using a credit card.

How do I avoid a convenience fee?

Use Alternative Payment Methods: Opt for traditional alternative payment methods like cash or checks, which often do not incur convenience fees. Choose Fee-Free Payment Options: Some businesses offer fee-free options for online payments or bill pay. Check for these alternatives.

Is charging a convenience fee legal?

Surcharges and convenience fees are legal, but laws and regulations vary by state. In some states, merchants may not be allowed to charge surcharges or convenience fees at all, while in others, they are allowed with certain conditions, such as providing clear disclosure of the fees.

How do you get around a convenience fee?

That's because credit cards are more expensive to process than credit cards. Renters can avoid these convenience fees by paying by ACH transfer or electronic check, with the funds coming directly from their bank accounts.

What states are convenience fees illegal?

Q: Are there any states where credit card surcharging is prohibited? Yes, as of the latest updates, credit card surcharging is prohibited in Massachusetts, Connecticut, and Puerto Rico. Merchants must stay informed of changing laws to ensure compliance.

Merchant Account Fees & Pricing EXPLAINED: How to Lower Credit Card Processing Fees

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Is it legal to charge a customer for using a credit card?

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.

What the heck is a convenience fee?

A convenience fee is a fee charged by a business for payments made through an alternative channel, rather than by cash, check, or ACH. Typical cases where convenience fees are charged include payments for taxes and tuition.

How do you avoid a surcharge fee?

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.

Are convenience fees refundable?

By paying a convenience fee, you gain access to the ease of booking flights from anywhere. Convenience fee is a non-refundable fee applied to all bookings made via our website, app, or call centres. The fee applies to all modes of payment and is charged per customer per ticket.

Can merchants charge a convenience fee on debit cards?

U.S. merchants cannot surcharge debit card or prepaid card purchases.

Can I pass on credit card fees to 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 I report a debit card 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.

What states don't allow credit card surcharges in 2024?

With that said, it's illegal to surcharge credit card transactions in:
  • Connecticut.
  • Maine.
  • Massachusetts.
  • California (effective July 1, 2024)

How can I avoid paying fees?

Here are some proven tips:
  1. Utilize free checking and savings accounts. Many banks still offer them.
  2. Sign up for direct deposit. ...
  3. Keep a minimum balance. ...
  4. Keep multiple accounts at your bank. ...
  5. Use only your bank's ATMs. ...
  6. Don't spend more money than you have. ...
  7. Sign Up for Email or Text Alerts.

What are average convenience fees?

The average credit card processing fees range from 1.5 percent to 3.5 percent of each transaction, according to industry analysts, although the final percentage depends on a host of factors.

Why do I have to pay a convenience fee for rent?

A convenience fee could be a fixed amount or a percentage of the rent payment. This fee allows the landlord to pass on the costs they incur in processing card transactions. Surcharges are usually a percentage of the rent payment and are separate from the actual rent amount.

How do I get rid of convenience 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.

Can I get my fee refund?

In order to get a refund of the fees paid to the school, you will have to write an application mentioning the reasons behind the refund. There can be various reasons like, you get a better opportunity somewhere else, or you want to rethink the admission.

Are convenience fees legal in all states?

To offset credit card fees, a merchant can levy a surcharge. 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.

Which states are prohibited from charging surcharges?

States Where Credit Card Surcharges Are Illegal
  • Connecticut.
  • Maine.
  • Massachusetts.
  • New York (as currently interpreted)
  • Puerto Rico.

Why am I being charged surcharge?

A surcharge is an extra fee beyond the original price of a good or service. Consumers pay surcharges to offset the higher cost of a certain product or fee. For example, a farming company may have an extra surcharge on their produce to cover the cost of the labor used to harvest the food.

Can I dispute a surcharge?

You can contact the seller directly to try to fix the issue, or you can “dispute the charge” with the company that issued your credit card. For example, you can dispute a charge that you did not authorize, that is for the wrong amount, or that is for something that the seller didn't provide as agreed upon.

Are convenience fees legal on debit cards?

Is Debit Card Surcharging Legal? For debit cards and prepaid cards, surcharging is prohibited—even when the card is run as a signature-based transaction without the PIN. This restriction was implemented by the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Why are companies charging service fees?

Many industries collect service charges, including restaurants, banking, and travel and tourism. When collected, these charges may cover services rendered to the consumer, or they may cover administrative or processing costs. Service charges are paid directly to the company.

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.