U.S. Credit Card Surcharge Laws: State-by-State Rules on Payment Method Surcharges
A reference for U.S. state laws governing whether merchants may add a surcharge when customers pay by credit card. Most states allow surcharges with disclosure requirements, but a few restrict or prohibit the practice.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Visa, Mastercard, and PayPal all permit merchants to add credit card surcharges, subject to card network rules that require clear disclosure, a cap at the actual cost of acceptance (typically 2-4%), and a separate line item on receipts. Most U.S. states allow surcharges for online transactions. A small number of states have laws restricting surcharges, primarily for in-person retail, though enforcement for ecommerce is rare. Merchants must check both state law and their payment provider's terms before enabling surcharges.
Fee schedule by jurisdiction
4 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| Most U.S. states | Permitted, typically capped at 2-4% (must not exceed actual processing cost) |
| Connecticut | Surcharges restricted |
| Maine | Surcharges restricted |
| Massachusetts | Surcharges restricted |
Most U.S. states
Permitted, typically capped at 2-4% (must not exceed actual processing cost)
Credit card transactions (debit cards and prepaid cards are generally excluded from surcharging)
Must be clearly disclosed before payment and shown as a separate line item on receipts
Connecticut
Surcharges restricted
In-person retail credit card transactions
State law restricts surcharges; enforcement focus is on in-person retail rather than ecommerce
Maine
Surcharges restricted
In-person retail credit card transactions
State law restricts surcharges; enforcement focus is on in-person retail rather than ecommerce
Massachusetts
Surcharges restricted
In-person retail credit card transactions
State law restricts surcharges; enforcement focus is on in-person retail rather than ecommerce
Enforcement
Violations of state surcharge laws can result in civil penalties. Card network violations (exceeding the cap, failing to disclose, or surcharging debit cards) can result in fines from Visa or Mastercard and potential loss of card acceptance privileges.
Official sources
Related guides
Step-by-step guides for charging u.s. credit card surcharge laws on Shopify.
How to Add a Credit Card Surcharge on Shopify
Learn how to add credit card surcharges on Shopify. Understand payment rules, stay compliant, and recover transaction fees with an app.
How to charge a credit card payment method fee with Magical Fees
For Shopify Plus (Plus plan)This feature is fully supported for merchants on Shopify Plus using the Plus plan. In the app admin, click Create Fee.
Shopify compliance
This fee is conditional — legality varies by jurisdiction. Merchants must verify whether their state or region permits this fee before enabling it. Shopify requires clear disclosure of any additional charges at checkout.
This information is maintained by the Magical Apps team and reviewed annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- State Credit Card Surcharge Laws and Card Network Rules
- Country
- United States
- Jurisdictions
- 4
- Category
- Regulatory Surcharges
Explore U.S. Credit Card Surcharge Laws in practice
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Related use cases
Set up with Magical Fees on Shopify.
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Other regulations in this category.
Australian Payment Method Surcharges
Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.
View fee schedule →CanadaCanadian Payment Method Surcharges
In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.
View fee schedule →GermanyGermany Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.
View fee schedule →SpainSpain Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.
View fee schedule →European UnionEU VAT for E-Commerce (OSS and IOSS)
Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.
View fee schedule →FranceFrance Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.
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