More businesses than ever add a fee when customers pay by card. Done correctly, it's allowed in most places. Done wrong, it can lead to fines from the card networks, complaints from customers, and even problems with your merchant account.
What's the difference between a surcharge and a cash discount?
- A surcharge adds a fee on top of the price when a customer pays by credit card.
- A cash discount program lists one price and gives a discount for paying with cash.
They sound similar, but the card-network rules treat them differently, so it matters which one you're actually running.
What are the basic surcharging rules?
The card networks set rules that apply nationwide. In general:
- Disclose it clearly — at the store entrance or website entry, and again at the point of sale, before the customer pays.
- Show it on the receipt as a separate line.
- Stay within the cap — surcharges are limited to a maximum percentage and can't exceed what accepting the card actually costs you.
- Never surcharge debit or prepaid cards — even when they're run as credit.
- Register or notify where the card network requires it, before you start.
Is surcharging legal in every state?
No. A small number of states restrict or prohibit credit card surcharges, and some set their own lower caps or disclosure rules. Rules have also changed in recent years, so always check your own state's current law before you start — or ask your processor to confirm in writing.
Does a surcharge make my processing cheaper?
Not by itself. It shifts some of the cost to customers, but if your underlying processing rate is high, you're still overpaying — and passing more of it on to your customers than you need to. It's worth checking both: the setup and the rate underneath it.
How do I check my current setup?
- Confirm whether you run a surcharge or a cash-discount program.
- Check that debit and prepaid cards are excluded.
- Check your signage, checkout screen and receipts.
- Compare your fee against the network cap and your real cost.
Want a quick read on the cost side? Use the free fee checker to see your effective rate in a minute, and ask us for a line-by-line review of both your pricing and your fee program.