Can A Restaurant Charge A Credit Card Fee?

The short answer is yes.

Starting in 2013, it became legal to charge customers extra for using a credit card.

Retailers can also require a minimum purchase amount when you use credit cards.

But merchants need to follow specific rules when adding credit card surcharges.

Can a restaurant charge a fee for using a credit card?

And now your favorite restaurant can be upfront about charging you more to cover the fee it pays to credit card companies to use their services, and why it’s doing so. They’re simply absorbing the merchant fees charged by the credit card companies.

What states is it illegal to charge extra for credit card?

Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.

Do you charge sales tax on credit card fees?

Paying Fees on Sales Tax

When you process a credit card transaction, your customer’s credit card is charged for the total amount of the sale including sales tax. In a retail environment where sales tax is paid on almost every transaction, the increased processing fees can amount to a substantial yearly expense.

Are companies allowed to charge a credit card fee?

Under current rules, which came into force in 2013, companies should only charge you what it costs them to process a debit or credit card payment. Companies are still allowed to levy a surcharge if you opt to pay by cash or cheque. Banning credit card fees should make a real difference on some purchases.