Can I add a credit card surcharge in my state? (2026)

By Grant Beucler, Co-owner, BP Global Merchant Services

Published October 28, 2026 · Last updated October 28, 2026

A credit card surcharge is legal in most of the U.S., but a few states ban it and others cap it. Visa and Mastercard rules apply on top of state law everywhere. Here are the rules as of October 2026, for restaurants, stores, auto shops, hotels, medical offices and online sellers.

Is a credit card surcharge legal in my state?

In most states, yes, if you follow card-brand rules. Connecticut, Maine, Massachusetts and Puerto Rico ban card surcharges. California and Texas have bans that court rulings have limited.

The table covers the states with the biggest surcharge rules and the newest changes. If your state isn't listed, Visa and Mastercard rules still apply, and general consumer-protection laws may too.

State	Credit card surcharges	What to know
Connecticut	Banned	Any fee tied to how a customer pays is a surcharge, including a receipt line called a "processing fee" or "non-cash adjustment." Cash discounts and dual pricing are allowed.
Maine	Banned	The ban covers debit cards too. A discount off the regular price isn't a surcharge. Government agencies may charge a card fee at cost.
Massachusetts	Banned	Cash discounts are allowed if they're offered to all buyers and clearly disclosed.
Puerto Rico	Banned	Regulators read the law to forbid cash discounts too. A federal appeals court rejected merchants' challenge to the ban in 2025.
California	Banned by a 1985 law, limited by a 2018 ruling	A federal appeals court blocked the ban for the businesses that sued. The attorney general generally applies that ruling to similar merchants.
Texas	Unclear	A 2018 federal ruling blocked parts of the credit card ban. The attorney general said in 2019 that it still applies in some cases.
Colorado	Allowed, with a cap	Up to 2% of the sale, or up to the processing fee you actually pay on it. Post the state's sign wording and list the fee on the receipt.
Oklahoma	Allowed since Nov. 1, 2025	The lower of 2% or your actual processing cost. Post the amount at the entrance and at checkout. No surcharge if you take only credit cards.
New York	Allowed, with a cap	The fee can't exceed what the card company charges you. Post the highest total price, surcharge included.
Kansas	Allowed since Jan. 1, 2025	Post the surcharge amount clearly at the entrance or at checkout, before the sale. Kansas sets no cap.
Louisiana	Allowed	Since Aug. 1, 2026, retail businesses can't surcharge debit cards.
Minnesota	Allowed	State law allows up to 5%, but Visa and Mastercard caps are lower. Tell customers at the sale and post a sign.

What changed in 2025 and 2026?

Five developments since January 2025 affect what merchants can charge and how they post it.

Aug. 1, 2026, Louisiana: Act 751 bans debit card surcharges at retail businesses. The attorney general can seek civil penalties of up to $500 per violation.
Nov. 1, 2025, Oklahoma: SB 677 replaced the state's surcharge ban with a cap of 2% or actual cost, whichever is lower.
2025, Puerto Rico: A federal appeals court rejected merchants' claims that federal law overrides Puerto Rico's ban.
May 12, 2025, nationwide: The FTC's fee rule took effect for hotels, vacation rentals and live-event tickets. Prices must show the total, including mandatory fees.
Jan. 1, 2025, Kansas: Surcharges became legal with a clear notice of the amount at the entrance or at checkout.

One more change may be coming. A federal judge holds the final approval hearing on the Visa and Mastercard merchant settlement on Nov. 16, 2026, Payments Dive reported. The dual pricing guide explains what the settlement would change.

What do Visa and Mastercard allow in every state?

Visa and Mastercard allow surcharges on credit cards only, capped at your cost. These rules apply in every state, alongside state law.

Visa's cap: no more than your cost of accepting the card, and never more than 3%.
Mastercard's cap: no more than your average cost for Mastercard credit cards, and never more than 4%.
Notice: tell your processor at least 30 days before you start. Mastercard also requires its own online registration.
Disclosure: Visa requires notice at the entrance and at checkout, and the surcharge as its own line on the receipt.
Debit and prepaid: neither brand allows surcharges on debit or prepaid cards.

Mastercard's rules say they don't change a merchant's duty to follow state law. So a card-brand rule that allows a surcharge never overrides a state ban.

Your cost of acceptance shows up on your monthly processing statement. The guide to reading your merchant statement explains each line.

How much can I add to a credit card sale?

Stay under every cap that applies to you, and card-brand rules never allow more than your card cost.

Example: A retail store rings up a $250 sale on a Visa credit card. Its processing cost on Visa credit is 2.6%, or $6.50 on this sale.

Where the store is	Most it can add	Why
Kansas	$6.50	Kansas sets no cap, so Visa's cost-based limit applies
Minnesota	$6.50	The 5% state cap is higher than the store's cost, so Visa's limit applies
New York	$6.50	The fee can't exceed the card cost, and the $256.50 card price must be posted
Colorado	$5.00 or $6.50	2% under one option, or the actual fee under the other, each with its own sign
Oklahoma	$5.00	The 2% state cap is lower than the store's cost
Connecticut	$0.00	Surcharges are banned
Any state, paid by debit card	$0.00	Visa and Mastercard don't allow debit surcharges

A Connecticut store could use a cash discount instead. It could post $250.00 as the card price and give cash customers 3.85% off, for a $240.38 cash price.

Can I add a surcharge to debit card sales?

No. Visa and Mastercard don't allow surcharges on debit or prepaid cards in any state. Several states add their own debit rules:

Colorado bars surcharges on cash, checks, debit cards and gift card redemptions.
Maine's ban covers debit cards as well as credit cards.
Texas has a separate ban on debit card fees, which the 2018 court case didn't address.
Louisiana banned debit surcharges at retail businesses on Aug. 1, 2026.

So a surcharge program has to tell credit from debit at checkout. A cash discount avoids that problem, because debit customers simply pay the posted card price.

Do I have to include the card fee in my posted prices?

In New York, yes. Elsewhere, it often depends on whether customers can avoid the fee.

New York: since Feb. 11, 2024, businesses must post the highest total price, surcharge included. A sign saying a fee applies to all card sales isn't enough. Fines run up to $500 per violation.
California: since July 1, 2024, SB 478 requires advertised prices to include all mandatory fees. The attorney general says a card fee isn't mandatory if customers can avoid it by paying another way. It is mandatory if the business takes only credit cards.
Hotels, vacation rentals and live events: the FTC's fee rule works the same way. A card fee belongs in the total price if customers must pay by card. An optional card fee still has to be disclosed before payment.
Oklahoma: a business that takes only credit cards can't surcharge at all.

Card-only businesses, such as a cashless coffee shop or a hotel that doesn't take cash, should check these rules before adding a fee.

What can I do in a state that bans surcharges?

Offer a cash discount or dual pricing instead. Federal law bars card networks from blocking a discount for paying with cash. The discount has to be offered to all buyers and clearly disclosed where the law requires.

The details decide whether it's a discount or a surcharge:

The posted price is the card price. Cash customers pay less, and card customers pay what's posted.
No fee at the register. Connecticut says a fee added at checkout is a surcharge, even if the receipt calls it a "non-cash adjustment."
Clear disclosure. Massachusetts allows cash discounts offered to all buyers and clearly disclosed.
One exception. Puerto Rico's regulators say cash discounts are forbidden too.

The dual pricing guide compares surcharges, cash discounts and dual pricing side by side. Valor PayTech and Dejavoo terminals both support dual pricing.

This is general information, not legal advice. State laws change, so confirm your setup with a lawyer in your state.

When BP Global Merchant Services fits

BP Global Merchant Services is a Dallas-based, independent merchant services provider and Elavon Payments MSP that works with merchants across the U.S. Most BP Global merchants run on dual pricing, where posted prices are card prices and cash customers get a discount. Merchants who'd rather keep one price can use interchange-plus pricing, with a fixed, itemized markup. To see in writing what you pay now and what you'd pay under each option, start with the Free Statement Review.

FAQ

Is it legal to charge a credit card fee in Texas?

It's unclear: a 2018 federal ruling, Rowell v. Paxton, blocked parts of Texas's credit card surcharge ban. A 2019 attorney general opinion said the ban still applies in some cases. Texas law doesn't treat a cash discount as a surcharge, so dual pricing is the safer route.

Can I charge a 4% credit card surcharge?

Not on Visa cards. Visa caps a surcharge at your cost of acceptance and never more than 3%. Mastercard's cap is 4%, but only up to your average cost for Mastercard credit, and state caps such as Oklahoma's 2% can be lower.

Do I have to notify anyone before I start surcharging?

Yes. Visa and Mastercard require notice to your processor at least 30 days before you start, and Mastercard also requires its own online registration. Some states add sign rules too, such as Colorado's required wording.

Is a non-cash adjustment the same as a cash discount?

No. Connecticut's consumer protection department says a receipt line called a "non-cash adjustment" or "processing fee" is a surcharge, which Connecticut bans. A true cash discount takes money off the posted card price instead of adding a fee.

Can I surcharge debit cards in any state?

No. Visa and Mastercard don't allow surcharges on debit or prepaid cards anywhere. Colorado, Maine and Texas law also restrict debit fees, and Louisiana banned debit surcharges at retail businesses on Aug. 1, 2026.

Will the Visa and Mastercard settlement make surcharging legal everywhere?

No. If a federal judge approves it after the Nov. 16, 2026 hearing, it would change card-brand rules, not state law. Mastercard's rules already say they don't change a merchant's duty to follow state law, so state bans would still apply.

Sources

Drafted with AI from public sources, including those listed above, and fact-checked before publishing.