Credit card surcharging, done carefully.
A surcharge adds a disclosed fee to credit card transactions to offset acceptance costs. It can be effective, and it comes with more rules than most programs.
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What a surcharge is
A surcharge is a fee added to a credit card transaction, disclosed to the customer before payment. It is separate from the posted price and applies only when a customer chooses to pay with a credit card.
Debit and prepaid cards
Under card network rules and federal debit regulations, surcharges generally cannot be applied to debit or prepaid cards, even when they are run as credit. Your terminal must be able to distinguish card types correctly.
Caps and notifications
Card networks cap surcharge amounts and may require advance notice to the networks or your acquirer before you begin. The surcharge generally cannot exceed your actual cost of acceptance.
State law matters
Some states restrict or regulate surcharging, and those rules have changed over time. Requirements can differ for in-person, online and recurring transactions. We review your locations and current rules as part of every quote, and recommend you confirm with your own counsel when in doubt.
When to consider alternatives
If your customers mostly pay with debit cards, or a surcharge would conflict with your brand or local rules, dual pricing, a cash discount or lower-rate processing may be a better fit. The review compares them for you.
Frequently asked questions
What is a credit-card surcharge?
A surcharge is a separately disclosed charge added to an eligible credit-card purchase. Network limits, notice requirements and state rules apply. It is not interchangeable with cash discounting or dual pricing.
Can debit or prepaid cards be surcharged?
Visa and Mastercard generally prohibit surcharges on debit and prepaid card transactions, including debit cards processed without a PIN. Your payment system must correctly distinguish eligible credit transactions.
Can I choose any surcharge percentage?
No. Applicable network caps, your cost of acceptance and state requirements constrain the amount. Have your processor verify the current permitted amount before implementing a program.
What disclosures does surcharging require?
Expect clear advance disclosures and appropriate receipt itemization, plus any applicable network notification requirements. Exact obligations vary; ask your processor for a current implementation checklist for your state.
Does PrimeSwipe provide legal advice?
No. Website information is educational and is not legal or tax advice. Rules change. Confirm your proposed program with your processor and qualified advisors before making changes to customer pricing.