What’s a credit card surcharge?

As processing costs rise, more businesses are evaluating credit card surcharges to help manage margins. This support article explains what a credit card surcharge is, where it is allowed, how it works at checkout, and the rules set by major card brands.

Key takeaways

A credit card surcharge allows a business to pass some processing costs to customers paying with credit cards, typically as a percentage added at checkout as a surcharge for credit card payments.
Surcharging is permitted under federal law but restricted or prohibited in some states; merchants must follow credit card surcharge laws by state and card brand rules.
Clear disclosures, fee caps, and accurate receipt display are essential to compliance when adding a surcharge for credit card payments.
Credit card surcharge programs can lower costs for small businesses, but consider customer experience and alternatives like cash discounts or dual pricing.

What is a credit card surcharge?

A credit card surcharge is an additional fee added when a customer pays with a credit card. Its purpose is to offset acceptance costs such as interchange and assessment fees. Surcharges are usually a percentage of the transaction and appear as a separate line on the receipt.

Are credit card surcharges legal?

At the federal level, surcharging is allowed, but state laws vary. Some states restrict or prohibit a credit card surcharge, while others permit it with specific disclosure requirements. Because statutes change, verify current credit card surcharge laws by state or consult counsel before launching a program.

Where prohibited, merchants cannot add a surcharge for credit card payments at the point of sale. In states where it is allowed, typical requirements include advance notice to card brands, clear signage at the entrance and checkout, fee caps, and accurate receipt disclosures. Noncompliance can lead to fines, chargebacks, or loss of processing privileges.

Tip: Do not surcharge debit or prepaid cards and make sure to apply surcharges uniformly to all credit cards within a brand unless you follow card-type rules.

States and territories where credit card surcharging is illegal:

Connecticut
Maine
Massachusetts
Puerto Rico

How do credit card surcharges work at checkout?

At checkout, the POS or payment gateway calculates the credit card surcharge as a percentage of the transaction and adds it as a separate line. The receipt must show the fee amount and label it as a credit card surcharge. The surcharge does not apply to cash, check, debit, or prepaid payments.

Tip: Communicate clearly. Post signage at the entrance and point of sale explaining the surcharge for credit card payments. For online checkouts, display the fee before the customer confirms payment.

Card brand rules you must follow

Visa, Mastercard, and American Express permit surcharging with conditions. Common requirements include advance registration or notice, entrance and checkout signage, a separate receipt line item, exclusion of debit and prepaid cards, and caps tied to your cost of acceptance or the brand maximum.

How do I enable credit card surcharging for my business?

To enable credit card surcharging, first notify your credit card processor and major card brands. Sekure Payment Experts can support you through this process. We verify your eligibility, submit all necessary registrations, configure your terminal or gateway, provide compliant signage, and ensure everything meets card‑brand rules so you can start surcharging.