What it means
A surcharge is a small extra fee you can add to a customer's bill when they pay with a credit card. It's meant to help you offset the cost of accepting the card. The Settlement makes it easier for merchants in most states to surcharge if they choose to.
Surcharging is optional. Many businesses choose not to. Either choice is fine.
The rules you have to follow
- The surcharge can only cover your actual cost of accepting that card — and no more than the card network's cap (currently 3%).
- You must apply it consistently to all credit cards of the same brand.
- You cannot surcharge debit cards or prepaid cards.
- You must tell the card networks (Visa, Mastercard) before you start, using their notification form.
- A few states restrict or prohibit surcharging. Check your state before you begin.
How to display it
Customers must know about the surcharge before they pay. That usually means:
- A clear sign at the entrance of your store.
- A clear sign at the point of sale (register or terminal).
- A separate line item on the receipt showing the surcharge amount.
- For online stores: a clear notice on the checkout page before payment is submitted.
Get more help
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Try the five-question Decision Tool, or contact the Merchant Support Center. Everything is free.