Surcharging rules, explained line by line.

The main surcharging rules are simple: you may add a surcharge only to credit card payments, it can’t exceed 3% or your actual cost of acceptance if that is lower, and customers must be told before they pay. On top of that, the card brands may require advance notice, the surcharge must appear on the receipt, and some states restrict surcharging altogether.

This guide walks through each of those surcharging rules in order, explains why it exists and shows what a compliant setup looks like. Card-brand rules change from time to time, so use this as a working summary and check current rules before you launch. It is not legal advice.

Rule 1: Credit cards only

A surcharge can apply to credit cards. It can’t apply to debit cards or prepaid cards, and that holds even when a customer runs a debit card “as credit” by signing instead of entering a PIN. The card type is what matters, not the button pressed at the terminal.

In practice, that means your system has to recognize a debit card when it sees one. The reliable way is BIN-based detection: the terminal or gateway reads the first digits of the card number, looks up the card type and adds the surcharge only when the card is credit. Asking the cashier to decide is how mistakes happen. Our guide on surcharging debit cards explains why this rule trips up so many merchants.

Rule 2: Stay under the cap

The surcharge can’t be more than 3%. It also can’t be more than what it actually costs you to accept credit cards. Whichever number is lower is your real limit.

If your cost of accepting credit is	Your surcharge can be at most
Above 3%	3%
Exactly 3%	3%
2.6%	2.6%
2.1%	2.1%

In other words, 3% is a ceiling, not a target. A merchant whose credit card cost works out to 2.4% can’t surcharge 3% just because the cap allows it. Setting the number right protects you if anyone ever asks how you arrived at it, and it keeps the program fair to customers.

Your cost of acceptance comes from your processing statement: interchange, card-network fees and your processor’s fees, measured against your credit card sales. If your statement is hard to read, that is common. Many are built that way. A line-by-line review shows the real number.

Rule 3: Tell the card brands and your customers

Advance notice to the card brands

The card brands may require you to notify them before you start surcharging, and many processors handle or guide that step for you. Ask your processor what notice is needed and when, and keep a record that it was sent. Starting first and notifying later is a common shortcut that causes problems.

Notice to customers

Customers need to know about the surcharge before they pay. Card-brand rules expect disclosure in two places:

• Point of entry. A sign at your front door, or a notice on your website before checkout starts.
• Point of sale. A notice at the register, on the terminal or on the online payment page, stating the surcharge amount or percentage.

The wording should be plain: that a surcharge applies to credit cards, the percentage, and that it does not apply to debit cards. Our guide to surcharge disclosure and receipts has more on wording and placement.

Rule 4: Show it on the receipt

The surcharge has to appear on the receipt as its own line, separate from the sale amount. A receipt that only shows a higher total looks like a hidden fee, even if it isn’t. Most modern terminals, POS systems and gateways can print the surcharge separately when they are set up correctly.

A compliant receipt usually shows:

1. The sale amount before the surcharge
2. The surcharge, labeled as a surcharge, with the amount
3. The total charged to the card

Rule 5: Check state rules and related limits

Card-brand rules set a baseline, but they aren’t the only rules. Some states restrict surcharging or add their own requirements on how it is shown or how much it can be. Those laws change, and new ones appear, so check the current rules for every state where you do business before you begin. If you sell online across state lines, that review matters even more.

A few related points come up often:

• Surcharges and convenience fees don’t mix. Card-brand rules generally don’t allow both on the same transaction. Our convenience fees guide explains the difference.
• Refunds should include the surcharge. When you refund a purchase in full, refund the surcharge too.
• Treat customers consistently. Applying a surcharge to some credit customers and not others invites complaints and questions.
• Industry programs may differ. Government and education merchants sometimes use separate fee programs with their own rules. Ask before you assume.

This summary reflects general card-brand rules as commonly applied. Rules change and vary by situation. Confirm current card-brand and state rules, and talk with your own advisor if you need legal guidance.

What PayZoom does

PayZoom builds surcharging programs around these rules. We cap the surcharge at 3%, use BIN-based detection so debit and prepaid cards are never surcharged, and set up your terminal, POS or gateway so the surcharge prints on its own receipt line. We help you plan disclosure at entry and checkout, and we help you review current rules before you start.

We also look at your statement first. Our free statement analysis shows your real cost of acceptance, which sets your true cap. If a cash discount program or a pricing change fits you better, we will say so. Call 866.242.4325 to talk with a real person.