Can a Business Charge a Credit Card Fee? Surcharge Rules by State

The short answer

In most states, yes, on credit cards only. Visa caps a surcharge at your processing rate or 3%, whichever is lower, requires 30 days' notice to your acquirer, and bans surcharges on debit and prepaid cards. Connecticut, Massachusetts, Maine and Puerto Rico ban surcharges; Colorado and Oklahoma cap them. A cash discount is protected by federal law.

Can You Legally Charge Customers a Credit Card Fee?

Usually, within the rules. Visa says merchants in most states "may add a surcharge to credit card transactions," subject to its requirements, and a handful of states ban or limit the practice. State law is checked against each statute below, as of October 7, 2026. For the October 2026 ban in the news, which is Australian, and the New Jersey and New York rules, see is there a credit card surcharge ban in October 2026.

What Are Visa's Surcharge Rules?

Visa's US rules are specific.

Notice: "Merchants must notify their acquirer 30 days before they begin surcharging."
Credit only: "debit cards and prepaid cards cannot be surcharged."
Cap: your merchant discount rate for the card or 3%, whichever is lowest.
Disclosure: signs at the point of entry and point of sale, and the surcharge on every receipt.
Enforcement: the acquirer of a merchant surcharging improperly may be "assessed an immediate US $1,000 fine."

Which States Ban or Limit Credit Card Surcharges?

States change these rules, so check your own state's current law before you start.

State	Rule	Law
Connecticut	No surcharge on any transaction; discounts for cash or debit allowed	Conn. Gen. Stat. ch. 739
Massachusetts	No surcharge for using a credit card	M.G.L. c.140D, s.28A
Maine	No surcharge for using a credit or debit card	9-A M.R.S. s.8-509
Puerto Rico	No surcharge	Ley 150-2008
Colorado	Capped at 2% of the total, or the merchant discount fee, at the seller's choice; signage required	SB21-091
Oklahoma	Allowed since Nov. 1, 2025; capped at 2% or the actual processing cost, whichever is less	SB 677 (2025)
Louisiana	No surcharge on debit cards, from Aug. 1, 2026	Act 751 (2026)

Can You Add a Fee to Debit Card Payments?

No. Visa bans surcharging debit and prepaid cards everywhere in the US, and Maine and Louisiana write it into state law: Louisiana's new law says a retail business "shall not impose a surcharge on a cardholder who uses a debit card."

Is a Cash Discount Different From a Surcharge?

Yes, and it is protected. Federal law bars card networks from rules that "inhibit the ability of any person to provide a discount or in-kind incentive for payment by the use of cash, checks, debit cards, or credit cards," provided the discount is offered to all buyers and disclosed clearly. Even Connecticut's ban allows a discount for paying by cash, check or debit.

The difference is how the price is built: a cash discount takes money off the posted card price; a surcharge adds a fee on top. Compare them in cash discount vs surcharge. BatchOut sets up either, inside the rules for your state.

Commonly Asked Questions

Is it legal to charge a credit card fee?

In most states, yes, on credit cards only and within Visa's cap of your processing rate or 3%, whichever is lower. Connecticut, Massachusetts, Maine and Puerto Rico ban surcharges.

Can I surcharge in Colorado?

Yes, capped at 2% of the total or the merchant discount fee, at the seller's choice, with required signage, under Colorado's 2021 law.

Can I surcharge in Oklahoma?

Yes, since November 1, 2025, capped at 2% or the actual processing cost, whichever is less.

Can I charge a fee for debit cards?

No. Visa bans surcharges on debit and prepaid cards, and Maine and Louisiana ban debit surcharges by law.

Sources

Keep reading