The short answer
Not in the United States. The ban that took effect on October 1, 2026 is Australian: the Reserve Bank of Australia removed surcharging on eftpos, Mastercard and Visa cards there. US merchants can still surcharge credit cards in most states, capped by Visa at their rate or 3 percent, whichever is lower, and never on debit or prepaid cards.
Where Did the October 2026 Surcharge Ban Happen?
In Australia. On March 31, 2026, the Reserve Bank of Australia published the final decisions of its Payments System Board, which include "removing surcharging on debit, prepaid and credit cards on the designated eftpos, Mastercard and Visa card networks." The bank said most of the changes, including the removal of surcharging and lower caps on domestic interchange fees, take effect on October 1, 2026.
The headlines traveled, which is why American owners are searching for it. The decision is Australian payments regulation. It changes nothing in a US merchant agreement.
Can US Businesses Still Add a Credit Card Surcharge?
Yes, in most states, and only on credit cards. Visa's US merchant guidance says merchants "in most States in the U.S. and U.S. territories may add a surcharge to credit card transactions," subject to its rules. Those rules are specific.
- Notify your acquirer at least 30 days before you start surcharging.
- Surcharge credit cards only. Debit and prepaid cards cannot be surcharged, even when the customer chooses "credit" on the terminal.
- Cap the surcharge at your merchant discount rate for that card or 3 percent, whichever is lower.
- Disclose it at the point of entry, at the point of sale, and as a separate line on every receipt.
Does Visa enforce the surcharge rules?
Yes. Visa says it runs a yearly mystery shop through outside auditors, and that the acquirer of a merchant found surcharging improperly may be assessed an immediate $1,000 fine.
What Are the Surcharge Rules in New Jersey?
New Jersey caps a credit card surcharge at what processing actually costs you. Under P.L.2023, c.146, a seller "shall not impose on a customer who uses a credit card for a transaction occurring in New Jersey a surcharge that is greater than the actual cost to the seller to process the credit card payment."
The amount must be disclosed before the customer is charged: on a sign at the point of entry and point of sale, or for a restaurant, on a sign in the customer service area and on the menu. Online, app and kiosk sales need notice on the checkout page, and phone orders need verbal notice. A violation is an unlawful practice under the state's consumer fraud law.
What Are the Surcharge Rules in New York?
New York requires the card price to be posted in full. General Business Law section 518 tells a seller who surcharges to "post the total price for using a credit card in such transaction, inclusive of surcharge," and says the surcharge "may not exceed the amount of the surcharge charged to the business by the credit card company." Each violation can carry a civil penalty of up to $500.
What Should a Merchant Do Now?
Pick the model that fits the counter and run it by the rules. Surcharging works within the caps above. A cash discount is the other route: Visa allows it when prices are shown as the card price, or the card and cash prices side by side, and the card total on the bill is not built by adding a fee. If the card total is built by adding a fee, Visa may treat it as a surcharge.
The two are compared in cash discount vs surcharge. BatchOut sets up either one, or plain processing at the processor's published rates, matched to the business.
Commonly Asked Questions
Did Visa ban credit card surcharges in the United States?
No. Visa's US guidance still allows merchants in most states to surcharge credit cards, capped at the merchant's rate or 3 percent, whichever is lower, with 30 days' notice to the acquirer and disclosure at entry, at checkout and on the receipt.
Can I surcharge a debit card if the customer presses credit?
No. Visa says the cardholder is still using a debit card, and US merchants cannot surcharge Visa debit or prepaid cards.
How much can a New Jersey business surcharge?
No more than its actual cost to process the credit card payment, under P.L.2023, c.146, and never more than Visa's cap of the merchant's rate or 3 percent.
What happened in Australia on October 1, 2026?
The Reserve Bank of Australia's reforms removed surcharging on eftpos, Mastercard and Visa debit, prepaid and credit cards, and lowered the caps on domestic interchange fees.
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