Question: Can Businesses Charge For Using A Credit Card?

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 businesses charge a fee for paying with a credit card?

All merchants are allowed to charge their customers a convenience fee for using a credit card if the customer is using a non-customary payment channel. The practice of always charging customers a fee for credit card payments, no matter how the transaction takes place, is called a surcharge.

Can a business charge extra for using a credit card?

Businesses are allowed to impose a surcharge on credit card purchases made on Visa and Mastercard, under a court settlement that took effect in January 2013. At present, merchants can pass along a charge equal to what they pay to accept the card, up to 4 percent.

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.

Can a store charge a fee for using a debit card?

No surcharge can be applied to debit card transactions. A court settlement in January 2013 ruled merchants can impose a surcharge (outside of the states that don’t allow credit card surcharges). Merchants can pass the same fee onto customers that they pay the card network per transaction.