Is It Legal to Surcharge Credit Cards? (The Quick Answer)

Credit Card Surcharge Laws by State (Updated For 2026)

In most cases, yes—it’s legal to surcharge credit cards. According to federal law, there’s a 4% maximum allowable surcharge on credit card transactions. Debit card surcharging is illegal in all 50 states.

With that said, it’s illegal to surcharge credit card transactions in:

• Connecticut
• Maine
• Massachusetts

Other states have laws that allow surcharging but with some contingencies.

• California bans surcharges as separate line items but permits dual pricing and all-in pricing (restaurants are excluded from this ban).
• Colorado allows credit card surcharging up to 2%.
• New York, New Jersey, Nevada, South Dakota, Nebraska, and Georgia prohibit surcharges from exceeding the cost that the merchant pays to accept the card.
• Georgia also allows convenience fees on credit card transactions, but only if the merchant accepts alternative types of payments.
• Texas law prohibits surcharging but allows merchants to impose convenience fees, service fees, and cash discounts (federal courts have ruled against Texas surcharge laws).
• Kansas also has anti-surcharging laws that were overturned by federal courts, but merchants must include the credit card fees in the listed price to legally impose a surcharge.
• Minnesota allows credit card surcharging, but requires mandatory fees to be included in the advertised price of a purchase unless the fees can be reasonably avoided by the consumer.
• Wyoming allows merchants to surcharge credit cards but caps cash discounts at 5% (the only state in the country that does this).

Merchants in the remaining 35 states can likely surcharge credit card transactions without breaking the law. But again, make sure to consult with an attorney and verify this information with your state to ensure you’re in compliance.