Surcharge Card Brand Rules
Success through compliance
Major credit card institutions set rules and regulations for merchants to follow when implementing surcharges. While there are slight variations among brands, general rules remain universal.
Is surcharging permitted in my state?
Surcharging is permitted in all US states except Connecticut and Massachusetts as well as the territory of Puerto Rico. Some states such as Colorado, Maine and Oklahoma permit surcharging but with additional rules.
Notify Card Brands
For card brands that require notification, merchants are required to submit notification of their intent to implement surcharging, 30 days prior to when then intend to start accessing surcharge fees. Krossroads support team can handle the notification process on your behalf.
Credit Transactions Only
Surcharging applies only to credit transactions in the U.S. and U.S. territories. Debit and prepaid cards cannot be surcharged.
No more than the cost of acceptance
The surcharge must not exceed your cost of acceptance for the credit card. In cases when the merchant’s cost of acceptance exceeds 3% of the underlying transaction amount, the merchant cannot assess a surcharge above 3%.
Proper signage and notification required
Disclosures must be provided at the point of entry into the business premises, as well as at the point of sales. Krossroads provides templates for the signage you need to post.
Itemization
Itemization of the final surcharge amount must be identified separately on the transaction receipt.
informing your customers
Required Signage
Merchants who implement surcharging are required to post disclosures at the business point of entry as well as at the point of sale. Please click here to see examples of compliant surcharge disclosures.
Depending on you preference, you can purchase customized compliance signage from online sources such as compliancesigns.com or print the signs in-house.
Get answers
Frequently Asked Questions
* Krossroads does not provide legal advice. Before you implement surcharging, all merchants should consult with their legal counsel to ensure that they are compliant with applicable state laws as well as card brand rules.
For Visa:
As of April 2023, Visa no longer provides a notification form for merchants who wish to start surcharging. Instead, data submitted to Visa via credit card acquirers serves as notification.
For MasterCard
https://www.mastercard.us/en-us/surcharge-disclosure-webform.html
Discover
https://www.pdffiller.com/453217869–merchant-surcharge-notification-form-Discover-Network-
Amex:
American Express does not require the submission of a formal notice.