Surcharging

What is it?

Surcharging is an additional fee that a merchant adds to a customer s bill when a credit card is used for payment.

Is there a cap?

Yes. The surcharge to credit cardholders can be no higher than 3% (Colorado 2% cap). Additionally, per card brand regulations, the merchant cannot assess a surcharge higher than their credit card processing cost.

How does pricing work?

All credit cards are surcharged no higher than 3% (Colorado 2% cap), and an offset flat rate is assigned to the merchant. Offline and PIN debit may be priced separately.

Is the program legal in all 50 states?

No. Surcharging is prohibited in California (effective July 2024), Connecticut, Maine, Massachusetts, Oklahoma, and Puerto Rico.

Is card brand registration required?

Yes. The acquiring bank will register the merchant with the card brands.

Which card types does each program apply to?

Surcharging can only applied to credit cards. Applying a surcharge to offline debit, PIN debit and prepaid cards is prohibited.

Does the program need to be disclosed to the customer?

Yes. Disclosures must be provided at the point of entry and point of sale. Itemization of the final surcharge amount must be identified separately on the transaction receipt.