Most US states allow credit card surcharges if you follow the card network rules. The main ones: up to 3% on Visa, never more than your actual cost, never on debit or prepaid cards, and clear notice before payment plus a line on the receipt. Connecticut, Massachusetts and Puerto Rico prohibit surcharges. Colorado caps them at 2%, New York and New Jersey limit them to your cost, and California's pricing law makes add-at-checkout surcharges risky.
Key takeaways
- Surcharging is legal in most states, subject to Visa and Mastercard rules.
- Prohibited: Connecticut, Massachusetts and Puerto Rico. Maine is restricted.
- Colorado caps surcharges at 2%; New York, New Jersey and South Dakota limit them to your actual cost.
- California requires mandatory fees in the advertised price, so dual pricing is the safer route there.
- State laws change. Confirm your state's current rule with your processor before you start.
States with special surcharge rules
New to the topic? Start with how credit card surcharging works. These are the states where surcharging is prohibited, capped, contested or comes with extra requirements. States not listed generally allow surcharging under the card network rules below.
| State | Status | What to know |
|---|---|---|
| Connecticut | Prohibited | State law bars surcharges on customers who pay by credit card. |
| Massachusetts | Prohibited | State law bars sellers from adding a credit card surcharge. |
| Puerto Rico | Prohibited | Surcharging is not allowed. |
| Maine | Restricted | Sources disagree on whether Maine bans surcharges or allows them with strict disclosure. Confirm current law before surcharging. |
| Colorado | Capped at 2% | Surcharges can't exceed 2% of the transaction, regardless of your processing cost. |
| New York | Allowed with rules | Since February 2024: post the total price including the surcharge, and keep the surcharge at or below your actual cost. |
| New Jersey | Allowed with rules | Surcharges are limited to your actual cost of processing. |
| South Dakota | Allowed with rules | Surcharges are limited to your actual cost of processing. |
| California | Restricted by pricing law | Since July 2024, mandatory fees must be built into advertised prices. Add-at-checkout surcharges are risky; dual pricing and cash discounts are common alternatives. |
| Florida | Contested | Florida's old surcharge ban was struck down by a federal appeals court in 2015. Many processors now allow surcharging there, but confirm before you start. |
Laws are moving. Several states have changed or challenged their surcharge rules in the last few years, and published guides often disagree. Treat this table as a starting point and confirm the current rule for your state before changing how you charge customers.
The card network rules that apply in every state
- Cap: Visa allows surcharges up to 3%; Mastercard up to 4%. Neither lets you charge more than your actual cost of accepting the card.
- Credit only: Debit and prepaid cards can't be surcharged.
- Notice: Your processor must be told before you start, commonly 30 days ahead.
- Disclosure: Signs or on-screen notice at your entrance or website and at checkout, before the customer pays.
- Receipt: The surcharge must appear as its own line item.
What if surcharging isn't allowed in your state?
You still have options. Dual pricing shows two prices up front, a cash price and a card price. A cash discount program gives a discount to customers who pay another way. And even without either, many businesses are simply overpaying their processor; see what normal fees look like and how to cut them.
The 2026 Visa and Mastercard settlement
A proposed settlement between Visa, Mastercard and US merchants received preliminary court approval in June 2026. It would give merchants clearer rights to surcharge or discount by card type, let them decline some premium card types, and lower average credit card interchange for several years. It isn't final, and it doesn't override state law, so the rules above still apply for now.
Frequently asked questions
Which states ban credit card surcharges?
Can I surcharge in California?
What's the surcharge limit in Colorado?
What are New York's surcharge rules?
If my state allows surcharging, are there other rules?
Does dual pricing follow the same laws?
This article is general information, not legal, tax or financial advice. Card network rules and state laws change; confirm the rules for your business before changing how you charge customers.