As more businesses adopt credit card surcharging to offset rising processing costs, it’s critical that every member understands and follows all legal and card brand requirements. Improper surcharging can result in fines, customer complaints, processor penalties, and even legal exposure.

This post outlines the key rules every business must follow to legally and transparently surcharge.

✅ What Is a Surcharge?

A surcharge is a fee added to a credit card transaction to pass on part of the processing cost to the customer.

⚠️ You cannot surcharge debit or prepaid cards—ever—even if the customer runs it as “credit.”

✔ Compliance Checklist: Are You Following the Rules?

1. Register When Required

Some card brands require advance notice before surcharging.

•    Visa and Mastercard may require registration through your processor.

•    Make sure your payment provider properly supports and sets up surcharging.

2. Surcharge Only Credit Cards

You may apply a surcharge to:

•    Credit cards only

You may NOT surcharge:

•    Debit cards

•    Prepaid cards

•    Gift cards

This applies regardless of how the card is entered (chip, swipe, tap, or keyed).

3. Follow Fee Limits

•    Most card brands cap surcharges at no more than the merchant’s actual processing cost, up to 3% maximum.

•    You may not profit from a surcharge.

4. Post Required Signage

You must clearly inform customers before they complete a purchase.

Typical signage includes:

•    Point of entry notice

•    Point of sale notice (physical or digital checkout)

Signs must clearly state:

“A surcharge of ___% will be added to credit card purchases.”

5. Display the Surcharge on the Receipt

Receipts must show:

•    The surcharge amount

•    That the fee applies only to credit cards

This ensures transparency and helps protect your business in the event of a dispute.

6. Use Technology That Calculates Everything Correctly

Your POS, terminal, or online processor should:

•    Automatically detect debit vs. credit

•    Apply surcharges only when allowed

•    Keep you within card brand and state level rules

If your system does not do this, you may already be out of compliance.

🚫 Surcharging Is Prohibited or Restricted in Some Areas

Some states regulate or restrict credit card surcharging.

Check your local and state requirements or consult your payment processor for current rules.

📄 Why Compliance Matters

When businesses fail to follow surcharge guidelines, they risk:

•    Card brand fines

•    Processor termination

•    Lawsuits or complaints

•    Damaged customer trust

Our Chamber is committed to helping every member operate confidently and legally.

💬 Need Help or Have Questions?

We’re here to support your business.

Contact the Chamber or your payment partner to ensure your surcharging program is fully compliant and properly configured.

✔ Protect your business

✔ Stay transparent

✔ Keep your customers informed

Contact our preferred provider: John Webb — U.S. Bank Merchant Payment Services | 937-671-1606 | john.webb@usbank.com