Download your free printable credit card surcharge sign – clearly inform customers about fees and stay compliant!
Our free credit card processing fee sign helps you clearly communicate surcharge policies while maintaining transparency and compliance. Download it today to provide a professional, well-structured notice that keeps your customers informed and your business compliant.
Learn more
What is a credit card surcharge?
A surcharge fee is an extra cost added to a transaction, often when using a credit card. Businesses apply this fee to cover the credit card processing costs from card networks like Visa, Mastercard, or American Express.
| Overview | |
|---|---|
| Purpose | To offset credit card processing fees. |
| Application | Often seen in credit card transactions, not with debit or prepaid cards. |
| Amount | Typically, a percentage of the purchase price. |
| Presentation | Listed as a separate line item on your receipt. |
What are the key U.S. surcharge rules
1. Legal in Most States
Surcharging is permitted in the United States, but not everywhere. While most states allow businesses to pass credit card processing fees onto customers, a few states ban the practice entirely due to consumer protection laws. As of now (2025), Connecticut, Massachusetts, and Puerto Rico prohibit credit card surcharges.
If you operate in one of these restricted areas, you’ll need to find alternative ways to manage processing costs, such as offering a cash discount program or adjusting product pricing to factor in card fees.
2. Clear Disclosure Required
Businesses must clearly notify customers before completing a transaction to ensure they are aware of the additional fee. This typically involves:
- Signage at the Point of Sale – A visible notice should be placed at the entrance and checkout area for brick-and-mortar stores. For eCommerce businesses, the surcharge must be disclosed before customers finalize their payment.
- Receipt Disclosures – The surcharge amount must be itemized separately on the receipt, showing exactly how much the customer was charged in addition to the purchase total.
- Consistent Communication – Any staff handling payments should be informed about surcharge rules so they can explain them to customers when necessary.
Failure to provide proper notice can lead to chargebacks, penalties, or compliance violations from card networks. Keep your 3% credit card fee sign—or any other percentage—clearly visible to ensure transparency and compliance.
3. Fee Limits Apply
Surcharge fees are strictly regulated and cannot exceed the actual cost of credit card processing. Under Visa and Mastercard guidelines, businesses must adhere to specific limits:
- Visa Transactions: The surcharge cannot exceed 3% of the total transaction.
- Other Credit Card Transactions: The maximum surcharge allowed is 4% of the total transaction or the actual processing cost—whichever is lower.
For example:
- If your payment processor charges 2.5% per transaction, you can only apply a 2.5% surcharge, not the full 3% or 4%.
- If your processor’s rate is 3.5%, you cannot exceed Visa’s 3% limit but may apply up to 3.5% on non-Visa credit card transactions (as long as it doesn’t surpass 4%).
Charging beyond these limits can result in penalties, compliance violations, or the loss of the ability to surcharge. To stay compliant, businesses should verify rates with their payment processor and ensure their surcharge settings align with card network regulations.
4. Registration with Card Networks
Before implementing a surcharge, businesses must notify Visa, Mastercard, American Express, and Discover at least 30 days in advance. This process ensures compliance and prevents businesses from imposing surcharges without authorization.
To register:
- Submit a surcharge registration form with Visa and Mastercard through their online portals.
- Inform your payment processor and acquiring bank of your intent to apply surcharges.
- Ensure that your POS system or payment gateway can itemize surcharge fees separately on receipts.
Failure to register could lead to disputes, penalties, or loss of merchant processing privileges.
5. Debit & Prepaid Cards Are Exempt
Surcharge laws strictly apply only to credit card transactions—you cannot apply a surcharge to debit or prepaid cards, even if the customer chooses the “credit” option on a debit card. This rule exists because debit cards are processed differently, and federal regulations prohibit additional fees on debit transactions. If you attempt to surcharge a debit card, your business risks fines and potential disputes from customers or payment networks.
To stay compliant, businesses should:
- Train staff to recognize debit vs. credit transactions.
- Configure payment terminals to automatically exempt debit and prepaid cards from surcharges.
- Make sure customer receipts and disclosures correctly reflect surcharge application only on eligible credit card transactions.
By following these rules, businesses can legally implement surcharges while avoiding penalties or compliance issues.
Learn more
What is a credit card surcharge?
A surcharge fee is an extra cost added to a transaction, often when using a credit card. Businesses apply this fee to cover the credit card processing costs from card networks like Visa, Mastercard, or American Express.
| Overview | |
|---|---|
| Purpose | To offset credit card processing fees. |
| Application | Often seen in credit card transactions, not with debit or prepaid cards. |
| Amount | Typically, a percentage of the purchase price. |
| Presentation | Listed as a separate line item on your receipt. |
What are the key U.S. surcharge rules
1. Legal in Most States
Surcharging is permitted in the United States, but not everywhere. While most states allow businesses to pass credit card processing fees onto customers, a few states ban the practice entirely due to consumer protection laws. As of now (2025), Connecticut, Massachusetts, and Puerto Rico prohibit credit card surcharges.
If you operate in one of these restricted areas, you’ll need to find alternative ways to manage processing costs, such as offering a cash discount program or adjusting product pricing to factor in card fees.
2. Clear Disclosure Required
Businesses must clearly notify customers before completing a transaction to ensure they are aware of the additional fee. This typically involves:
- Signage at the Point of Sale – A visible notice should be placed at the entrance and checkout area for brick-and-mortar stores. For eCommerce businesses, the surcharge must be disclosed before customers finalize their payment.
- Receipt Disclosures – The surcharge amount must be itemized separately on the receipt, showing exactly how much the customer was charged in addition to the purchase total.
- Consistent Communication – Any staff handling payments should be informed about surcharge rules so they can explain them to customers when necessary.
Failure to provide proper notice can lead to chargebacks, penalties, or compliance violations from card networks. Keep your 3% credit card fee sign—or any other percentage—clearly visible to ensure transparency and compliance.
3. Fee Limits Apply
Surcharge fees are strictly regulated and cannot exceed the actual cost of credit card processing. Under Visa and Mastercard guidelines, businesses must adhere to specific limits:
- Visa Transactions: The surcharge cannot exceed 3% of the total transaction.
- Other Credit Card Transactions: The maximum surcharge allowed is 4% of the total transaction or the actual processing cost—whichever is lower.
For example:
- If your payment processor charges 2.5% per transaction, you can only apply a 2.5% surcharge, not the full 3% or 4%.
- If your processor’s rate is 3.5%, you cannot exceed Visa’s 3% limit but may apply up to 3.5% on non-Visa credit card transactions (as long as it doesn’t surpass 4%).
Charging beyond these limits can result in penalties, compliance violations, or the loss of the ability to surcharge. To stay compliant, businesses should verify rates with their payment processor and ensure their surcharge settings align with card network regulations.
4. Registration with Card Networks
Before implementing a surcharge, businesses must notify Visa, Mastercard, American Express, and Discover at least 30 days in advance. This process ensures compliance and prevents businesses from imposing surcharges without authorization.
To register:
- Submit a surcharge registration form with Visa and Mastercard through their online portals.
- Inform your payment processor and acquiring bank of your intent to apply surcharges.
- Ensure that your POS system or payment gateway can itemize surcharge fees separately on receipts.
Failure to register could lead to disputes, penalties, or loss of merchant processing privileges.
5. Debit & Prepaid Cards Are Exempt
Surcharge laws strictly apply only to credit card transactions—you cannot apply a surcharge to debit or prepaid cards, even if the customer chooses the “credit” option on a debit card. This rule exists because debit cards are processed differently, and federal regulations prohibit additional fees on debit transactions. If you attempt to surcharge a debit card, your business risks fines and potential disputes from customers or payment networks.
To stay compliant, businesses should:
- Train staff to recognize debit vs. credit transactions.
- Configure payment terminals to automatically exempt debit and prepaid cards from surcharges.
- Make sure customer receipts and disclosures correctly reflect surcharge application only on eligible credit card transactions.
By following these rules, businesses can legally implement surcharges while avoiding penalties or compliance issues.
