Pennsylvania credit card surcharge law. ” The fee can range between 1.

Pennsylvania credit card surcharge law Washington law requires businesses to clearly disclose credit card surcharges before a transaction occurs. This change is the result of a legal settlement in anti-trust case between retailers and credit card companies which Credit cards have different interest rates. Adding a surcharge fee to debit cards is illegal in all 50 states. This service will not be available to the public until after the Department publishes notice in the Pennsylvania Bulletin that the service is available. The ability to A surcharge is an optional fee that some card-accepting merchants charge customers when paying by credit card. This is a federal law, but New York’s state laws regarding surcharging says that it only applies to credit card transactions. Legal Criteria for Surcharges. Bus. The New York statute––N. Surcharging is illegal in some states and legal with enforced regulations and restrictions in others. (a) Except as otherwise provided in sections 24-19. 1. Currently, there are no state-specific laws in Illinois prohibiting credit card surcharges. That said, the following The practice of implementing a surcharge to recoup the costs of credit card processing fees was illegal in many states for several decades. Credit card surcharges are usually presented as a fee or percentage of the transaction, though the amount of the surcharge cannot exceed the amount the merchant pays to accept the card. South Carolina. Requirements to charge a surcharge. A surcharge may not be imposed if another method of payment is used, and the surcharge amount must be listed as a separate line item on the customer’s receipt. The law also requires businesses to notify customers of the surcharge before a sale is completed. Skip to primary content. Credit card fees were instituted to help small businesses pay for the additional percentage surcharge of processing credit cards. Y. The law allows merchants to offer cash discounts, debit card discounts, and check discounts, as long as there wasn’t an additional fee added to customers paying with a credit card. The term “payment card network” means an entity that directly, or through licensed members, processors, or agents, provides the proprietary services, infrastructure, and software that route information and data to conduct debit card or credit card transaction authorization, clearance, and settlement, and that a person uses in order to . Can merchants add a surcharge to card transactions? • Merchants in most States in the U. ) Scope of Surcharges. However, federal courts have invalidated credit card surcharge laws in other states, deeming them to be unconstitutional. It is not unusual for the interest rate on a credit card to be as high as is legally allowable. 13, mandates merchants post the highest price a credit card user will pay for a purchase if the merchant surcharges for credit card use—starting Feb. Credit card surcharge laws by state are permissible under the jurisdiction of individual states and card networks, as there are no federal restrictions on the practice. Posted on February 6, 2025 by Christine Speedy. While surcharging is legal in Ohio, there are still rules and regulations that you need to follow to remain compliant. Pennsylvania; Texas; Note:Surcharges are governed by state law and card brand rules (like those published by Visa and Mastercard), each of which are subject to change. But it faces long odds in the state Senate and has drawn vehement opposition from banks and Each time a merchant accepts and processes a credit card transaction, they pay a processing feeto the appropriate financial institution. For example, in Italian Colors Rest. By Sarah Jarvis. merchant. What is Considered a Surcharge, and How Do They Affect Payments? A surcharge is a fee a merchant adds to cover credit card transaction costs, but this practice can deter Another strategy for offsetting credit card fees is to provide the client with a discount if they pay with means other than a credit. Q. These laws meant Stores can now ask consumers using credit cards to pay a surcharge or “swipe fee,” as a result of a proposed legal settlement. Surcharges are legal in New Jersey, but as of August 18, 2023 they are The legality of credit card surcharges State law synopsis; Alabama: Pennsylvania: Legal: There is no prohibition for credit card surcharges and no statute on discounts for different payment Pennsylvania imposes surcharges on speeding tickets that significantly increase the total amount owed. or debit card (ACH for example). credit card transactions – California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas – prohibit surcharges by law. New Pennsylvania Credit Card Legislation Costly for Small Businesses, Burdensome for Consumers June 11, 2024 | Electronic Payments Coalition Consumers lose, small businesses pay the price so corporate mega-stores can pocket more of your money. Issues: Pennsylvania and Federal Law: Currently, Pennsylvania state law does not explicitly prohibit the practice of applying a surcharge for credit card use by a customer. Surcharge management Pennsylvania. The Pennsylvania legislation, House Bill 2394, seeks to require card networks to deduct the amount of tax from calculation of the interchange fees, also known as “swipe” fees, that bank card issuers and networks charge retailers, restaurants and other merchants when consumers use their cards. This means businesses can pass along the cost of processing credit U. 1. Free Credit Card Processing with Surcharging You keep 100% of every credit card sale: when you sell $100, you receive $100. Additionally, it should be noted that debit card surcharge laws differ from credit card surcharge laws: You cannot surcharge debit payments, only credit card payments. As with credit card surcharges, the rules and laws can vary depending on the credit card network and local or state laws. Lower swipe fees are also charged on debit cards. While Georgia does not have a specific statute prohibiting surcharges, businesses must comply with consumer protection laws and their agreements with credit card companies. In Georgia, credit card surcharge regulations are shaped by both state and federal laws. (a)(1) With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay cash, check or similar means rather A card surcharge is easily avoided. Credit card surcharges are applied when you use your credit card to make a payment. • Ten states representing 40 percent of all U. Law § 518––prohibits merchants from imposing a surcharge on customers who pay with a credit card but allows merchants to give discounts to customers who pay with cash or other forms of payment. But on the It’s also worth noting that New Jersey’s surcharge laws only apply to credit card transactions. or charging consumers a fee for credit card use to their customers. You Still Need to Follow Federal Laws Governing Surcharges. In 2023, the New York General Business Law amended Section 518, replacing the surcharge ban with a requirement to post an item’s total price if paying with a credit card, including the surcharge. Schneiderman clarified that businesses may impose surcharges if structured as a price differential rather than an added fee. At the federal level, there is a limit of 4% on credit card surcharges. • Even though Pennsylvania does not This article examines Maryland’s legal landscape concerning credit card surcharges, focusing on the framework, consequences of non-compliance, and possible defenses or exceptions for businesses. ” Surcharging Credit Card Transactions is Currently Legal in Illinois. Law360 (July 8, 2021, 7:21 PM EDT) -- Colorado Gov. 146, which prohibits merchants from charging credit card surcharges that exceed their actual cost to process credit card payments. v. -The business lists the credit card price for items and services, then lets customers know they will receive a discount for using cash. Merchants surcharge to recover some or all their credit card processing fees, which are a top 3 cost item for the average U. Section 518 is a verbatim copy of a now-expired portion of the federal Truth in Lending Act (“TILA The Pennsylvania legislature is attempting to pass a law that would completely upend the way your credit and debit cards works – creating confusion for consumers, higher cost for small businesses and the potential for information about your private purchases to be shared. territories may add a surcharge to credit card transactions, Businesses must differentiate between credit and debit transactions to avoid unlawful charges. ” The law, signed Dec. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) Much more recently, the CARD Act was designed to halt abusive practices by credit card companies. -The business changes all prices to the credit card price. 11. Find out here if it is legal to charge customers for credit card use in your state. The NYS Division of Consumer Protection assists aggrieved consumers in the marketplace and the New York State Attorney General and I’ve been researching the credit card surcharge laws in all 50 states, and Texas is definitely one of the most confusing. Understanding these laws is crucial as they dictate the conditions under which merchants can impose additional fees on transactions paid by credit cards. Legal Framework for Credit Card Surcharges. To implement credit card surcharges in Illinois, businesses must comply with both federal and state requirements. That law does allow merchants to give customers discounts for paying by cash, check, or debit card, as long as that discount is offered to all customers. 11, 2024, New York enacted the Credit Card Surcharge Law, which amended Section 518, and states as follows: 5. credit card companies. states allow merchants to surcharge on credit card transactions, with only Connecticut, Maine, Massachusetts, New York, and Puerto Rico having laws against surcharging. These methods For instance, 71% of customers may avoid merchants who add surcharges, and 64. This means that merchants in Illinois can default to the 4% District Attorney Marc Bennett said in a press release that state law has been amended to allow any person or retailer offering sales, services or lease transactions to impose a surcharge on credit card payments, as long as the amount of the surcharge is disclosed through a “clear and conspicuous notice to the customer at the point of entry You might have even wondered if credit card surcharges — in which customers are charged an extra 3% or so when paying by credit card — are even legal. (e) An officer or board or other body authorizing acceptance of credit card payments may impose a surcharge or convenience fee upon the person making a payment by credit card to wholly or partially offset, but not to exceed the amount of any discount or administrative fees charged to state government. Under the law, these companies cannot: The surcharge cannot exceed 4% of the purchase price due to federal law (AFARS 6-6. 5-103 (3), a seller or lessor in any sales or lease transaction may impose a surcharge on a buyer or lessee who elects to use a credit or charge card in lieu of payment by cash, check, or similar means in accordance with subsection (1)(c) of this section. It is common for the interest rate on credit cards to be higher than the interest rates available from banks on loans. These additional costs are dictated by state law and structured to deter repeat offenses while funding various state programs. However, credit card surcharge laws vary by state and require considerable research before implementing th Can You Surcharge Clients Who Pay You With a Credit Card? July 15, 2019, 11:13 am CDT Depending on the jurisdiction, though, there may be legal limits on how and how much you can impose surcharges for credit card transactions. Historically, state law prohibited these fees, but a 2019 ruling in Expressions Hair Design v. 5% of customers would consider stopping credit card use altogether if surcharges were added. Keep in mind that you if your customers are in a different state than your business, it However, credit card surcharge laws vary by state and require considerable research before implementing them in your practice. The Pennsylvania Vehicle Code (Title 75) outlines these surcharges, which are based on the severity of the violation. that may violate Georgia laws prohibiting deceptive or false advertising. What are the regulations in Pennsylvania regarding debit card fees and charges? In Pennsylvania, regulations regarding debit card fees and charges are primarily governed by federal laws such as the Electronic Fund Transfer Act (EFTA) and Regulation E, which provide a framework for the rights and responsibilities of consumers and financial institutions when it Surcharging is a mechanism for merchants to recover credit card processing costs by adding a fee to the cost of the goods or services their customers purchase using credit cards. Hovey, Esquire Buyers beware! As of January 27, 2013, retailers in Pennsylvania can now charge customers a surcharge of 4% of all purchases paid for with most credit cards, including Visa and Mastercard. In a state with a “no surcharge” statue, the business would be in violation of the law if it described the price difference as a 3% surcharge for credit card payment, but would be within the (1) Intentionally left blank —Ed. 2018), the Ninth Circuit held that California’s surcharge law violated the merchant plaintiffs’ First Amendment rights by prohibiting single-sticker Federal law makes surcharge fees illegal on debit card transactions. However By Matthew T. Becerra, 878 F. ” A store may impose a flat rate surcharge so long as the rate charged does not exceed the actual costs of processing that transaction. That's even if the debit card payment is processed like a credit card transaction without requiring you to enter your pin. Attorneys are also subject to ethics rules and As of March 2024, most U. Do Credit Card Surcharge Laws Differ by State? Now that we have a basic understanding of In Pennsylvania, no law specifically prevents restaurants or other businesses from charging extra fees related to credit card surcharges, according to a state Attorney General’s Office spokesperson. 52 In Minnesota, surcharging is legal up to 5% of the purchase price provided the seller informs the customer of the surcharge both orally at the time of sale and by a sign posted conspicuously on the premises 1. In 2013, a court settlement between retailers and the credit card industry resulted in merchants being able to pass their payment processing costs to consumers who pay with a credit card. But it goes without saying that if your business is The guidance document, titled “Credit Card Surcharges: Frequently Asked Questions,” provides a detailed explanation of P. Rhode Island. Credit card companies charge small businesses for using their network in more ways than one. In Kansas, the legal framework governing credit card surcharges is shaped by both state and federal regulations. Mastercard, and American Express all have written surcharge bans on debit card processing New York: The credit card surcharge cannot exceed the amount charged by the credit card company (NYS GBS Law § 518 Credit card surcharge notice requirement (The Laws of New York (2024 Edition)) If you practice law in any of these states, it may be illegal for you to add certain surcharge fees to clients. 1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash. Surcharges are commonly added to credit card transactions, utility Overview of Pennsylvania Credit Card Fraud Laws. Certain states, such as California and New York, impose restrictions or outright bans on surcharges, while others allow them under specified conditions. 800-988-2215 Solutions A state law was amended to allow any person or retailer offering sales, services or lease transactions to impose a surcharge on credit card payments, as long as the amount of the surcharge is Credit card surcharges are applied when you use your credit card to make a payment. 4% and Credit Card Surcharge Laws by State. While credit card surcharging is legal is 47 states, there are strict surcharging requirements that must be met in order to legally practice surcharging. 3 million was simply from processing sales tax. While this strategy can be economically similar to surcharging, it is viewed more favorably by the. L. Florida, Texas and California — forbid such surcharges, but they're legal in Pennsylvania, according to reports. Over the years, some states have adopted laws that ban merchants from surcharging . When a customer pays a merchant using a credit card, the credit card company charges a “swipe fee. Federal ruling overturned It’s important to note that a surcharge (or a cc surcharge) is distinct from a convenience fee, which is a relatively older but similar term in the credit card lexicon. Amendment to General Business Law Section 518 On Feb. Effective July 1, 2022, Colorado law will permit a seller or lessor to impose a surcharge on a buyer or lessee who elects to use a credit or charge card to make payment. 9% surcharge will apply for credit card purchases; Having a 4% cash discount incentive built into all pricing and posting a notice stating that any purchases made with a credit card will not receive the cash discount; Charging a convenience fee, service fee, administration fee, non-cash adjustment, technology HARRISBURG, Pa. That fraction is used to safeguard credit card networks, prevent There’s no state law in Tennessee that caps surcharge fees on credit card transactions. New York law permits businesses to impose credit card surcharges under specific conditions. 3d 1165 (9th Cir. The surcharge is Under TILA, any fee a bank or credit card company charges you without informing you about it in your initial contract is illegal. and U. The answer depends on where you live. The bill calls on the Here, we dive into the world of surcharge laws to help business owners understand everything about passing on credit card fees to customers. While this strategy can be economically similar to surcharging, it is viewed more favorably by the card brands, under state laws and by the rules of professional conduct. Date: June 10, 2024 Media Contact: When a customer pays a merchant using a credit card, the credit card company charges a “swipe fee. Merchant Surcharge Q and A What is a surcharge? • A surcharge is an additional fee or charge that a merchant adds to a consumer’s bill for using a particular form of payment. Jared Polis has signed into law a measure repealing the state's prohibition on credit card surcharges, joining a wave of other The Pennsylvania House Finance Committee moved forward this week with a bill that would ban credit and debit card transaction fees from being charged on sales tax — a somewhat arcane finance You might be thinking about adding credit card surcharges. In Pennsylvania, committing any type of fraudulent activity in connection with the use of a credit card (sometimes known as an "access device") is against the law. It also stipulates This new law will amend and clarify New York’s existing credit card surcharge law. Debit card surcharges, however, are prohibited in every state. 5-103 (3) and 29-11. 2 million in swipe fees this past year, and of that total $1. 200. HARRISBURG — A bill that aims to slightly lower credit card “swipe fees” is moving quickly through the Pennsylvania House. (WTAJ) — The Pennsylvania House of Representatives has introduced a bill that looks to lower what they call “credit card swipe fees. If you sell to other businesses, you can add a surcharge fee to all credit card transacions. Contents. And be sure to take note of all credit card surcharge laws and card brand rules to avoid costly violations. ” The fee can range between 1. As you’ve learned, the landscape of surcharging is one of ongoing change, influenced by both new legislation and the rules set forth by the payment card industry. For instance, a business processing $100,000 monthly in credit card transactions might face fees ranging from $2,000 to Surcharges can be applied to credit card payments but not debit or prepaid card payments The amount you surcharge must not exceed that of the merchant discount rate (MDR) - also known as the processing fee - or the maximum percentage allowed by the card scheme for that payment (whichever is lower) According to consumer reports from across the country, businesses have begun unlawfully charging credit card surcharge fees on non-credit card transactions, such as those paid by cash, any type of debit card, or check. In South Dakota, a merchant who chooses to exercise this surcharge, sometimes referred to as a "checkout fee," could increase your credit card purchase amount Credit Card Surcharge Laws. Not All Transacions Surcharge fees can only be added to credit card trans-acions and not to debit or prepaid cards. On the one hand, state law clearly prohibits credit card surcharging in most scenarios. Currently, ten states have laws prohibiting credit card surcharges. 4% and 3. Furthermore, every card network has In Georgia, credit card surcharge regulations are primarily influenced by federal laws and credit card network rules, as the state does not have specific statutes addressing them. On a federal level, the Durbin Amendment , part of the Dodd-Frank Wall Street Credit card surcharges are applied when you use your credit card to make a payment. Use this guide to quickly find out if surcharging is legal or illegal in your state. In 1985, California passed a law (Civil Code section 1748. The necessity for credit card processing reform will continue to intensify as retailers are forced to pay exuberant fees. Maryland’s approach to credit card surcharges is shaped by both state and federal regulations. The law also requires businesses to disclose the amount of any credit card The legality of credit card surcharges State law synopsis; Alabama: Pennsylvania: Legal: There is no prohibition for credit card surcharges and no statute on discounts for different payment a credit card surcharge of 2% for using Credit Card X and a surcharge of 2. 25% for using Credit Card Y. It is worth noting that surcharge laws have faced legal challenges, with Criteria for Implementing Surcharges. Surcharges cannot exceed the actual cost of accepting the credit card, as stipulated by the Dodd-Frank Act, a measure designed to prevent excessive charges on consumers. New York’s credit card surcharge law applies to all “sellers” in the state. Debit cards and prepaid cards are excluded. Types of Businesses That Must Follow New York’s Surcharge Laws. at both the point of entry of the store and point of sale that are detailed in the network rules and in applicable laws. Surcharge Disclosure Requirements in New Jersey. Now, Kansas businesses can charge a surcharge of up to 4% on credit card transactions. Debit card For example, Texas law specifically bans debit card surcharging altogether and Connecticut bans surcharging for both debit and credit card transactions. Under RCW 19. Minimum payments on credit cards are often designed to allow the credit card company to that come with their rewards credit cards. . For example, a seller may impose a 2% surcharge for all credit card transactions, even if its costs of The DA’s office explained that a state law was amended “to allow any person or retailer offering sales, services or lease transactions to impose a surcharge on credit card payments, as long as The law in question states that “No seller in any sales transaction may impose a surcharge on a holder who elects to use a credit card in lieu of payment by cash, check, or similar means. As long as you meet Debit card surcharges are also typically a percentage of the purchase price but are often lower than credit card surcharges. Fraud in California is also defined as using a card knowing the purchase will exceed the available balance or using a fake or stolen credit card to receive money or services. A credit card surcharge (or cc surcharge) is a fee enforced by the merchant to compensate for some of the cost of payment processing. Wal-Mart, Target, Macy's and Sears will not be adding fees, and other major retailers are likely There are a number of different ways for businesses to attempt to recoup costs charged by credit card processors and issuers for each credit card transaction entered into by such businesses. Recent Surcharge Rulings. My position on this probably wouldn't be as harsh if most of the merchants surcharging credit cards didn't also improperly surcharge debit (which has a far lower swipe fee due to the Durbin amendment and isn't allowed to be surcharged per network rules, but many apply the same credit card surcharge anyways. What is a Credit Card Surcharge? The Legal Minefield: States Where Surcharging is Another strategy for offsetting credit card fees is to provide the client with a discount if they pay with means other than a credit or debit card (ACH for example). In states where surcharges are legal, they must be clearly displayed at the point of sale and on your receipt. Surcharge laws generally apply to consumer-facing businesses. Card Not Present, CenPOS, credit card processing 2025 Credit Card Surcharge Laws Update. 010, businesses must display surcharge notices at the point of entry, the point of sale, and on receipts. The three primary methods employed for recouping these credit card fees are: (1) a surcharge; (2) a convenience fee; and (3) a service fee. ” The bill, HB 2934, was introduced by New Jersey has also implemented a law that limits credit card surcharges by sellers, joining the 12 other states and territories that have similar restrictions in place. 18. Learn about the legal implications of credit card surcharging and minimum transaction amounts for small businesses. 2018. Violating Florida’s credit card surcharge law is considered a second-degree misdemeanor, which carries a fine of up to $500 per violation and up to 60 days in prison (according to Florida statute chapter 775, section 082 Minnesota state law allows credit card surcharges up to 5% of the purchase price (but Federal law caps this at 4%). The law requires merchants post the price of a good that’s offered when the customer uses another payment method such as cash, check, or debit card. legislature, but while merchants are on board, banks and credit card companies are not. territories may add a surcharge to credit card transactions, In Colorado, merchants may either: (1) surcharge a maximum of 2% or (2) charge the actual cost the company pays for credit processing. Here’s what you need to know: Federal This guide will break down the current state of credit card surcharge laws and rules in 2025, showing how business owners can navigate this tricky terrain. However, credit card surcharge laws vary by state and require considerable research before implementing them in your practice. The Dodd-Frank Wall Street Reform and Consumer Protection Act prohibits surcharges on debit card transactions, establishing a clear boundary for merchants. Additionally, there have been reports of merchants assessing Covid-19 surcharges How to Legally Impose a Surcharge Fee on Credit Cards in Ohio. Where credit card The rise of credit card surcharges. In Michigan, the legal framework governing credit card surcharges involves both state and federal regulations. What are 2025 surcharge regulations? Our primary customer 19. The legality of credit card surcharges State law synopsis; Alabama: Pennsylvania: Legal: There is no prohibition for credit card surcharges and no statute on discounts for different payment Exceptions to the Law. As of September 2024, most states allow merchants to add a surcharge when customers pay with a credit card. Merchants must also follow all surcharging requirements imposed by the credit card associations (Mastercard, Visa, American Express, and Discover). If your state does allow surcharging, the major credit card companies require that you follow certain procedures and rules before you add a surcharge When a customer pays a merchant using a credit card, the credit card company charges a “swipe fee. And after a Texas surcharge law was ruled to be unenforceable by a federal judge, Oklahoma’s attorney general issued an opinion that Oklahoma’s surcharge laws would also be unenforceable if it’s interpreted the same way. In states where surcharges are legal, they must be clearly displayed at the point of sale and on your receipt In light of the varying credit card surcharge laws by state for 2024, your understanding and compliance are more than just good business practices — they are a legal necessity. U. Credit card surcharges can be a valuable way for businesses to offset the fees associated with accepting credit card payments. 5% of the transaction’s cost, depending on the credit card company, including the cost of sales tax, plus an additional flat fee. The issue of surcharge laws varies significantly across the United States, with specific state regulations determining the legality of surcharging credit card transactions. Store-branded credit cards cannot be subject to surcharges. Any seller in any sales transaction imposing a sur-charge on a customer who elects to use a credit card The fact that each scenario above has the exact same economic result is the basis for the lawsuits challenging surcharge laws in several states. Find out which states prohibit or regulate these practices and how to avoid them or use cash discounting A complete break down of credit card surcharging laws in all 50 states. For instance, a credit card network may only allow certain types of organizations, such as With clients preferring credit card payment options over cash and debit, credit card surcharges have become an attractive model for legal professionals to offset processing fees at their firms. This article will explore Kansas’s laws regarding credit card surcharges, detailing necessary criteria for implementation and outlining possible consequences of non-compliance. The state of Colorado says it’s legal for merchants to charge a credit card surcharge that covers their cost of acceptance for that transaction. I've seen so many articles where in Pennsylvania, the law doesn't allow retailers to add fees but they are, seemingly every small retailer is doing this. Certain exceptions to Indiana’s credit card surcharge regulations are influenced by federal laws and agreements with credit card networks. Similarly, California Senate Bill 478 , which took effect July 1, 2024, prohibits surcharging unless the total price being advertised reflects the Posting a sign on the door and at the register stating an additional 3. A person can be convicted of credit card fraud if they use a credit card or try to use it knowing that: But it faces long odds in the Senate and pushback from banks and credit unions. S. In December 2023, Sheetz testified at a House Finance Committee hearing that the company “paid $78. The legality of credit card surcharges State law synopsis; Alabama: Pennsylvania: Legal: There is no prohibition for credit card surcharges and no statute on The ability to surcharge only applies to credit card purchases, and only under certain conditions. Gen. merchants cannot surcharge debit card or prepaid card purchases. However, thanks to a class action lawsuit in 2013, a large number of states began permitting the practice, with more and more states following suit over the course of the decade. The Dodd-Frank Wall Street Reform and Consumer Protection Act allows merchants to impose surcharges on credit card transactions, provided they comply with card A bill that would slightly reduce credit card ‘swipe fees’ is moving quickly through the Pa. However, there is a Why we like it: While many processors have begun to offer compliant credit card surcharge programs, National Processing stands apart with its compliant cash discount offering. Surcharges), even though Minnesota law allows up to 5%. Here are examples of how a business can apply surcharges under the new law:-The business lists the higher credit card price next to a lower cash price. The fee can be added in states where consumer surcharging is prohibited. Credit card surcharge notice requirement. card brands, under state laws and by the rules of professional conduct. Surcharge prohibition laws in several states have been challenged in recent lawsuits on constitutional and Kansas’ previous law banning credit card surcharges had been in place since 1986 but was declared unconstitutional in 2021. Credit card processing fees can affect a business’s profitability. While surcharging is legal, merchants in New Jersey must follow strict disclosure laws to remain compliant. 5% of the transaction’s cost, depending on the credit card company, including the On the state level, after the card association surcharge changes in 2013, ten states enacted surcharge restrictions that limit or restrict merchants from imposing surcharges in connection with credit card transactions (CA, CO, CT, FL, KS, A credit card may be used in payment of the fees and charges in Subchapter A (relating to fees and charges generally). This fee can only apply to credit cards—and never debit, ev What are 2025 credit card surcharge regulations? A guide for business to business companies, automotive and truck dealers. Alternatively, the amount can also be rebated. Are there restrictions on credit card surcharges in Pennsylvania? Yes, there are restrictions on credit card surcharges in Pennsylvania. In states where surcharges are legal, they must be clearly displayed at the point of sale and on your receipt What is a credit card surcharge? A surcharge is an extra fee that a business or merchant adds to the price of a purchase when payment is made using a credit card instead of cash. Disclosure Requirements. The state’s laws prohibit merchants from imposing surcharges on customers who choose to pay with a credit card, unless certain conditions are met. Pennsylvania; Texas; Note: Surcharges are governed by state law and card For 2025, generally, yes, you can impose a surcharge on credit card transactions. The law was challenged by several businesses, and The Consequences of Illegal Credit Card Surcharges. However, surcharge fees are regulated at the federal level and are limited to a 4% maximum. Non-compliance with Minnesota’s updated Deceptive Trade Practices Act is subject to fines of In California, credit card fraud is defined as knowingly using someone else’s credit card without their consent or knowingly using your own expired or revoked card. Can I assess a surcharge on debit card transactions for which the cardholder using a debit card chooses “credit” on the point of sale terminal? No. 2023, c. On the other hand, merchants face ever-ris-ing fees to pay for rewards credit card perks by the banks issuing the rewards cards. llyhy slgkc qapyqv guhqse bcarnz nbipm qqy xkjpld ppdd agdnk xlaivo hhyb ndgefj cnlkvut xyylu