Program 3 of 3
Surcharging: a posted fee on credit cards. Never on debit.
Your tag stays the cash price. Credit card buyers pay a surcharge of up to 3%, shown on signs and on the receipt. It recovers the most on big-ticket, mostly-credit stores, and it comes with the most rules. We handle every one.
The card-brand rules
Seven rules every surcharge has to follow.
These come from Visa's core rules and Mastercard's surcharge rules as published in 2026. Your state may add more.
Capped at 3%
Visa caps surcharges at 3% and at what you actually pay to accept the card, whichever is lower. Mastercard allows up to 4% but not above your cost. We set yours to your real cost.
Credit only
Debit and prepaid cards can never be surcharged, even if the customer presses "credit." The terminal tells them apart by the card itself, not by a button.
30 days' notice
Visa needs written notice to your processor at least 30 days before you start; Mastercard needs its own registration. We file both and give you your start date.
A sign at the door
Visa wants a notice at the main entrance, in at least 32-point type, saying you surcharge credit cards.
A sign at every register
At least 16-point type, stating the exact percent, that it applies only to credit, and that it is no more than your cost of acceptance.
Its own receipt line
The surcharge prints separately on the front of the receipt, in the same type as everything else, and comes back pro-rated on any refund.
Rule seven: same treatment across cards. A surcharge must be the same percent on every Visa credit card, and if you take American Express, its rules on fees are stricter than Visa's and Mastercard's. Tell us which cards you take and we will set it up so every brand's rules are met.
Same sale, two cards
Credit pays the surcharge. Debit never does.
State law
Where surcharging is off the table.
Card-brand rules are the floor. These states go further.
| State | Surcharging |
|---|---|
| California | AvoidBan still on the books; use cash discount or dual pricing |
| Connecticut | BannedCash discount allowed with notice |
| Maine | BannedCredit and debit |
| Massachusetts | BannedCash discount allowed with posted notice |
| Puerto Rico | BannedCash discounts restricted too |
| Colorado | 2% capOr your merchant discount fee; statutory notice wording |
| Oklahoma | 2% capAllowed since Nov 1, 2025; not for card-only stores |
| New York | Dollar price firstTotal credit price in dollars before checkout |
| Texas | UnsettledCash discount is the safer choice |
When surcharging fits
- Most of your card sales are credit, not debit
- Big tickets: appliances, furniture, cabinets, lumber
- Contractor and business buyers who pay with credit cards
- Your tags must stay exactly as they are
When it doesn't
- Lots of debit: those sales still cost you full price
- Your shoppers are also your donors and volunteers
- You are in one of the states above
- Small tickets where a fee line looks petty ("30¢ on a $10 shirt?")
Watch for: the Visa and Mastercard merchant settlement. Its fairness hearing is set for November 16, 2026. If it is approved, the surcharge ceiling becomes 3% across both brands. Nothing changes until a final order, and we will tell our stores when it does.
Questions
Surcharging, asked and answered.
Do I charge sales tax on the surcharge?
It depends on the state. Minnesota's Tax Court treats surcharges as taxable, North Carolina has audited stores that skipped it, and a Colorado revenue letter says a compliant surcharge is not taxable. Ask your tax preparer; we set the terminal either way.
Can I surcharge just one card brand?
You can surcharge at the brand level, but the percent must be the same across that brand's credit cards, and some brands' rules depend on how you treat the others. We sort this out at setup so nothing conflicts.
Does anyone actually check?
Yes. Visa runs mystery shopping on surcharging merchants and can fine the processor on the spot. Missing signs and surcharged debit cards are the usual findings. Our setup is built so neither happens.
What happens on a refund?
The surcharge goes back with the refund, pro-rated if you refund part of the sale. The terminal does the math.
We're a nonprofit. Should we surcharge?
The rules are the same for nonprofits. Whether you should is a donor-relations call. We usually recommend a cash discount for charity stores, because "cash saves you money" lands better with people who also donate.
Find out what surcharging would recover.
Your statement shows your credit and debit split. We will show the real number, not the "zero fees" headline.