Credit Card Surcharge Laws by State: Considerations for Merchants

Credit card surcharging rules are not one-size-fits-all. While federal regulations and card brand rules provide a general framework, individual states still have unique requirements for credit card payments and credit card processing fees that merchants must follow. Below, we provide excerpts from and links to surcharging laws and regulatory guidance in certain states where merchants have raised questions in the past. The content provided here is for informational purposes only, may not reflect the most recent legal developments, and does not constitute legal advice.  

This blog is not meant to provide an exhaustive list of the surcharging laws in all states. The inclusion or exclusion of a state or specific laws of a state are not meant as an indication of significance or importance. While we strive to keep information accurate, laws, regulations, and guidance are subject to change, and this information should not be used as a substitute for consultation with legal counsel.

Credit Card Surcharge Laws by State: In General

Before implementing a credit card surcharge program to offset processing fees, merchants should carefully review state-specific requirements (and consult legal counsel when appropriate) to ensure compliance.

Not properly configuring a surcharge program for state compliance comes with risks, including penalties or loss of customer trust.

Knowing which states allow surcharge, which states allow only certain percentages (like 2% or 3%), and which states require additional signage can help merchants assess surcharge programs and find tools to support their compliance with state laws as well as card brand rules and regulations. 

Surcharging in Connecticut, Maine and Massachusetts: Not Permitted by Visa

There are three states that have current effective credit card surcharge bans according to Visa:

• Connecticut: “No person may impose a surcharge on any transaction.” (CT Gen Stat § 42-133ff. (2024))

• Maine: “[a] seller… may not impose a surcharge on a cardholder who elects to use a credit card” (9-A ME Rev Stat § 8-509 (2025))

• Massachusetts: “No seller… may impose a surcharge on a cardholder who elects to use a credit card” (MA Gen L ch 140D § 28a (2024))
  

Because of this, if a merchant operates in Connecticut, Maine, or Massachusetts, surcharging is not an option. 

Surcharging in New York: Permitted by Visa but Note Clear and Noticeable Price Display Requirements

In New York, merchants who surcharge must “clearly and conspicuously post the total price for using a credit card…, inclusive of surcharge” (NY Gen Bus L § 518 (2025)).

That would seem to indicate that the total price of a transaction, including any credit card surcharge, must be posted wherever prices are displayed (e.g., price list, shelf sticker, invoice, estimate) before a merchant can surcharge. For more details, you can review relevant New York-specific guidance here: NY Credit Card Surcharge Guidance.

Surcharging in California and Minnesota: Permitted by Visa but Note Alternate Payment Method or Price Display Requirements

Both California and Minnesota passed laws requiring the inclusion of all extra fees in prices,, but both states’ Attorney General’s offices later clarified how this applied to surcharging in their respective FAQs:

• “Does a business need to include credit card processing fees in the advertised price?”

  • “Generally, no because a credit card processing fee is not a mandatory fee if the customer can avoid the fee by paying a different way (e.g. cash).” (Attorney General FAQ in California)

     

• “Does [the] surcharge need to be included in the advertised price?

  • “If the credit card surcharge is an optional charge, meaning a consumer could reasonably avoid the surcharge by paying with cash, then this credit card surcharge is not a “mandatory fee” under the law and the surcharge would not need to be included in the total price that is advertised, displayed, or offered.” (Attorney General FAQ in Minnesota)

     

For full details on the “hidden fees” laws in these states, please visit:

• California Hidden Fees Law - CA Civ Code § 1770 (2025)

• Minnesota Hidden Fees Law – MN Statute 325.D44 

Surcharging in Oklahoma: Permitted but Note 2% Surcharge Limit

As of November 1, 2025, Oklahoma law permits credit card surcharging, however “[n]o surcharge shall exceed two percent (2%) of the total transaction” (14A OK Stat § 2-211 (2025).

Surcharging in Colorado: Permitted by Visa but Note 2% or Merchant Discount Fee Surcharge Limit

Colorado’s law requires that merchants that implement a credit card surcharge only charge “[a]n amount not to exceed two percent [2%] of the total cost to the buyer … [or] [a]n amount not to exceed the merchant discount fee that the seller or lessor incurs in processing the sales or lease transaction” (CO Rev Stat § 5-2-212 (2024)).

As there is no language requiring that merchants charge whichever amount is lower, merchants in Colorado can consider charging their cost of acceptance up to 3%.

Colorado also has unique signage requirements for merchants that implement surcharge fees that differ from other states. This is why, at PayJunction, we provide Colorado-specific external signage and build these disclosures into our terminals. For more details about surcharging in Colorado and the specific signage requirements, review the applicable state statute here: CO Rev Stat § 5-2-212 (2024).

Surcharging in Florida and Texas: Permitted by Visa but Note Conflicting Attorney General Guidance in Each State

There are a number of other states, like Florida and Texas, that have laws on the books that technically prohibit credit card surcharging, but some courts have ruled these laws are unenforceable.

Both Florida and Texas have since issued guidance via their respective Attorney General’s offices that have clarified the legality of surcharging in their states:

• By Florida Statute “[a] seller or lessor… may not impose a surcharge on the buyer or lessee for electing to use a credit card”,  (FL Stat § 501.0117 (2025)). But, per Attorney General’s Office Guidance:

  • Question: “Are credit card surcharges legal?”

  • Answer: “Yes… Florida has a law prohibiting credit card surcharges, but that law was held unconstitutional by federal courts. Therefore, merchants in Florida may add a surcharge to credit card purchases.” (Attorney General FAQ in Florida)

• By Texas Statute “… a seller may not impose a surcharge on a buyer who uses a credit card” (TX §604A.0021 (2025)).

  • Per Attorney General’s Office Guidance (following the conclusion of a relevant court case): “Although a recent judicial decision held section 604A.0021 unconstitutional as applied to specific facts, it remains enforceable in some contexts.” (Attorney General of Texas - Opinion KP-0257)

Because Florida and Texas are not listed as prohibited states by Visa, merchants can choose to implement surcharge programs in these states.  However, when it comes to credit card surcharging laws in specific states, merchants should always consult their counsel for legal guidance before using surcharging to offset credit card processing costs.

Building a Compliant Surcharge Program: State Laws, Card Brand Rules, and Optimized Technology

While understanding how state rules differ is essential, state compliance alone is not the only consideration. For more information from the card brands on surcharging, merchants can review PayJunction’s compliance requirement checklist or visit official Visa Surcharging and MasterCard Surcharging resources for insights into card network rules. These resources can help merchants accepting credit card payments to maintain compliance while maximizing the financial benefit of passing on credit card acceptance costs.

At PayJunction, we permit merchants to surcharge in all states permitted by Visa. Additionally, even for businesses already surcharging credit card transactions, we know there are many opportunities for merchants to utilize technology to automate compliance requirements. In addition to merchants regularly reviewing both compliance requirements and the performance of the surcharge strategy, PayJunction’s SmartSurcharge helps to ensure that debit costs are managed effectively.

Additionally, it ensures that certain pricing and card brand requirements are automatically disclosed, and that every aspect of the surcharge program is compliant to prevent costly mistakes while offsetting allowable credit card processing fees. Merchants should know that credit card surcharging can help businesses recover credit card processing fees to compliantly reduce payment processing costs by 50% or more when done the right way, with the right partner.