Also called: Credit card surcharge
What a surcharge is
A surcharge is an extra fee you add to a customer’s bill for paying with a credit card. It shifts some of your card acceptance cost to the customer, but it does not change the fees your processor, card network, or the customer’s issuing bank charges you.
In the US, surcharges are allowed on eligible credit card transactions only. You cannot surcharge debit or prepaid cards, even when a customer selects “credit” at the terminal. A surcharge is different from a cash discount, which lowers the displayed price for customers who use another payment method.
A network’s surcharge cap is a ceiling, not permission to charge more than your actual cost of acceptance.
How surcharging works
You choose whether to surcharge and set the amount within the applicable rules. As of 2026, Visa caps a surcharge at 3% and Mastercard at 4%, but neither cap lets you charge more than your actual cost of accepting that credit card. If your acceptance cost is lower than the network cap, the lower cost is your limit.
Before you start, give your acquirer at least 30 days’ notice. Mastercard rules also require at least 30 days’ written notice to Mastercard. Disclose the surcharge at the point of entry and checkout, and show it as a separate line on the customer’s receipt.
Illustrative surcharge on a $100 sale
| Credit card acceptance cost | 2.2% |
|---|---|
| Surcharge | $2.20 |
| Customer total | $102.20 |
Illustrative only. The surcharge cannot exceed your actual cost of acceptance or the applicable network and legal limits.
What it means for your costs
A surcharge can offset part of your credit card expense, but it does not lower the rate your business pays. For example, on an illustrative $100 sale with an eligible card acceptance cost of 2.2%, a 2.2% surcharge adds $2.20 to the customer’s bill. Your actual permitted amount depends on your cost and the applicable rules.
Your cost is not a single rate: it includes interchange, network fees, and processor markup. A surcharge does not make those charges disappear, and the rules do not let you treat the 3% Visa or 4% Mastercard cap as an automatic fee.
Where surcharging goes wrong
State law can ban or further restrict surcharging. As of 2026, Connecticut, Maine, Massachusetts, and Puerto Rico prohibit credit card surcharges. Some other states impose lower caps or additional requirements, so the rules depend on where each outlet operates.
Charging a debit card, exceeding your actual acceptance cost, missing advance notice, or hiding the fee until checkout can put you out of compliance. Visa actively enforces its surcharge rules, and its guidance describes a potential $1,000 assessment to an acquirer for an identified merchant violation. Return the surcharge with a full refund, and return the corresponding portion with a partial refund or chargeback.
What you can actually change
- Confirm eligibility. Apply a surcharge only to eligible credit card transactions. Exclude debit and prepaid cards, including debit cards processed with a “credit” selection.
- Calculate the real cap. Use your actual cost of accepting the applicable credit card, not the network maximum by default. As of 2026, Visa’s cap is 3% and Mastercard’s is 4%, subject to the lower cost limit.
- Give advance notice. Notify your acquirer at least 30 days before you begin. Mastercard also requires advance written notice to the network.
- Show the fee clearly. Disclose the surcharge at entry and checkout, then itemize it on the receipt. Check the rules for every state where you operate before setting prices or signage.
Frequently asked questions
Can I surcharge debit cards?
No. US merchants cannot surcharge debit or prepaid cards. That remains true when a debit cardholder selects “credit” at the point-of-sale terminal. Limit surcharges to eligible credit card transactions.
What is the maximum credit card surcharge?
As of 2026, Visa’s maximum is 3% and Mastercard’s is 4%. You also cannot charge more than your actual cost of accepting the applicable credit card, and state law can set a lower limit or prohibit surcharging.
How much notice do I need to give before surcharging?
Give your acquirer at least 30 days’ notice before starting. Mastercard rules also require at least 30 days’ written notice to Mastercard. Build the notice period into your launch plan before changing checkout prices or signage.
Do I have to show a surcharge on the receipt?
Yes. Show the surcharge as a separate line on the customer’s receipt, and disclose it at the point of entry and checkout. A fee revealed only after the customer commits to the purchase can violate disclosure requirements.