Surcharging

Surcharging, rules and all.

The price on the invoice is the cash price. When a customer pays by credit card, a small fee is added. Powerful, but tightly regulated.

Credit cards onlyCapped at 3-4%Banned in some states30-day notice first
Invoice #1042Due Sep 17
Subtotal$200.00
Credit surcharge (3%)+ $6.00
Cash, debit or ACH$200.00
Credit card$206.00
Surcharge itemized on the receipt
Debit and prepaid cards are never surcharged, even when run as credit.
The one thing to understand

A fee added to credit cards, never debit.

Get this and everything else follows.

It is

A credit-card fee

The cash price is the real price. A capped percentage is added only when someone pays with a credit card.

It is not

A fee on any card

Debit and prepaid cards are never surcharged, even when a debit card is run as credit. No exceptions.

If you can't tell what kind of card it is, you don't surcharge. When in doubt, treat it like cash.

The rules

Five rules you can't break.

The first one is the one that gets merchants in trouble.

Rule 1 · the one that gets merchants in trouble

Credit cards only.

Debit and prepaid cards are never surcharged, even when run as credit. If the card type can't be determined, don't add the fee. Charge the base price.

Limit
Stay under the cap
Visa max 3%, Mastercard max 4%, and never more than it actually costs you to accept the card. Most merchants use 3% to stay safe on both.
Prohibited
Some states don't allow it
Banned in Connecticut, Massachusetts, Maine and Puerto Rico. California's junk-fee law (SB 478) effectively pushes you toward dual pricing instead.
Required
Give 30 days' notice first
Written notice to the card networks and your processor before your first surcharge. You can't start collecting before that date.
Required
Disclose it everywhere
Signage or an online notice, a heads-up at checkout before they pay, and an itemized line on the receipt.
3%
Visa max
4%
Mastercard max
≤ cost
Never above your cost of acceptance
Where you can't surcharge

Prohibited states.

In these places, run dual pricing or a cash discount instead. It does the same job and is legal everywhere.

Prohibited

Connecticut · Massachusetts · Maine · Puerto Rico · California (SB 478 drip-pricing)

As of September 2026. This list changes, so verify with your processor and legal counsel before launching in any state.
Common questions

Quick answers.

Can I charge a flat fee instead of a percentage?

Risky. On a small ticket, a flat fee can quietly exceed the cap. A percentage stays within the cap automatically, so it is the safer default.

What if I'm in a banned state?

Use a cash discount or dual pricing instead. It is legal in all 50 states and achieves the same margin protection. See how dual pricing works →

What happens if I surcharge a debit card?

It is a violation of card-network rules and can put your processing at risk. That is why the card type is checked before any fee is added.

Surcharging shifts the cost of accepting credit cards to the customers who choose to pay that way, within the rules above. It is more constrained than dual pricing, so the compliance has to be exact.

On Invoisure the card type is classified at authorization, the caps and your cost of acceptance are enforced, surcharging is blocked where it is not allowed, and the fee is itemized on every receipt.

This page is general information, not legal advice. Card-network rules and state law change. Verify with your processor and legal counsel before launching a pricing program.