These fees are charged by the bank that issued the debit card. They're meant to cover the costs of processing and handling transactions as well as fraud prevention.
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.
Use cash where you can
The easiest way to avoid card surcharges is to pay by cash.
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.
Yes. Debit card processing fees involve interchange fees, which vary by card and bank, and payment processing fees, which vary by provider.
You aren't allowed to pass on debit card fees to customers, so you'll have to cover the cost yourself.
Contact your bank or credit union to dispute the charge.
Let them know you want to dispute a debit card charge. Depending on where you bank, you may be able to start a dispute online, over the phone, or in writing. Regardless of how you contact your bank, make sure you keep detailed records of your communication.
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.
Businesses incur costs for processing certain card payment types. Some businesses include these costs in the prices they charge for their products. Others pass the costs on as a surcharge for paying with the card.
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.
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.
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.
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.
No, surcharging for debit card transactions is prohibited under the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This applies to all types of debit cards, including prepaid cards.
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 apply credit card surcharges to offset the costs associated with processing credit card transactions. When customers pay with a credit card, businesses incur fees from their bank or payment processor. These fees can include a percentage of the transaction amount plus a fixed charge per transaction.
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.
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.
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)
The simplest way to avoid card surcharges? Pay cash. While businesses can charge a surcharge for paying with a credit, debit or prepaid card, they can't charge you more than the advertised price if you're paying in cash.
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.
Merchant fees are so high because credit card processing companies often inflate their charges. Processors also charge extra fees and unnecessary fees, adding to the total cost of a merchant's monthly statement. For example, let's say a customer buys food at a restaurant using a Visa rewards card.