Surcharge State Laws

The lay of the land, when it comes to surcharging.

Surcharging is legal in the following states. In some states where surcharging is legal, there might be additional rules and regulations to be observed.

States A-Lstates m - ostates p-w
AlabamaMarylandPennsylvania
AlaskaMichiganRhode Island
ArizonaMinnesotaSouth Carolina
ArkansasMississippiSouth Dakota
CaliforniaMontanaTennessee
ColoradoNebraskaTexas
DelawareNevadaUtah
FloridaNew HampshireVermont
GeorgiaNew JerseyVirginia
HawaiiNew MexicoWashington
IdahoNew YorkWest Virginia
IllinoisNorth CarolinaWisconsin
IndianaNorth DakotaWyoming
IowaOhio
KansasOregon
Kentucky
Louisiana

Where surcharging is illegal

Currently, credit card surcharging is illegal in the following states:

ConnecticutMaineMassachusettsOklahoma

State Specific Requirements

* 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

Colorado

Merchants may access a credit card surcharge up to either (i) 2% of the transaction price, or (ii) the actual costs the business pays for processing.

Colorado Disclosure Signage

In Colorado, a business that accesses surcharge fees must include specific text on its storefront or website. Those businesses surcharging 2% should post the following:

  • To cover the cost of processing a credit or charge card transaction, and pursuant to section 5-2-212, Colorado Revised Statutes, a seller or lessor may impose a processing surcharge in an amount not to exceed 2% of the total payment made for goods or services purchased or leased by use of a credit or charge card. A seller or lessor shall not impose a processing surcharge on payments made by use of cash, a check, or a debit card or redemption of a gift card.

Those surcharging actual costs should use this language instead:

  • To cover the cost of processing a credit or charge card transaction, and pursuant to section 5-2-212, Colorado Revised Statutes, a seller or lessor may impose a processing surcharge in an amount not to exceed the merchant discount fee that the seller or lessor incurs in processing the sales or lease transaction. A seller or lessor shall not impose a processing surcharge on payments made by use of cash, a check, or a debit card or redemption of a gift card.

Maine

Merchants are required to post the cost of paying with cash and the cost of paying with a credit card (e.g. $1000 or $1,029 with card)

New York

Same as Maine. Merchants are required to post the cost of paying with cash and the cost of paying with a credit card (e.g. $1000 or $1,029 with card)