As of March 2021, most U.S. states allow merchants to surcharge on credit card transactions, with only Colorado, Connecticut, and Massachusetts having laws against surcharging.
Are there states that do not allow credit card surcharges?
- 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.
- 1 Which states allow credit card surcharges?
- 2 What states is it illegal to charge extra for credit card?
- 3 Is it legal to pass credit card fees to customers?
- 4 Is it legal to charge a credit card fee in NY 2021?
- 5 Can I charge a credit card fee in Florida?
- 6 Is it legal to surcharge debit cards?
- 7 Are surcharges legal in North Carolina?
- 8 Is it legal to charge credit card fees in NY?
- 9 Is it legal to charge a credit card processing fee in Illinois?
- 10 What is the difference between a surcharge and a convenience fee?
- 11 What is a surcharge fee?
- 12 Is it legal to charge a credit card fee in NJ?
- 13 Is it illegal to charge a credit card fee in Georgia?
- 14 Can you charge a credit card fee in Colorado?
Which states allow credit card surcharges?
Surcharging is sometimes also known as “zero-fee” or even “free” credit card processing. You might have also heard of cash discounting, which is when the customer receives a discount equivalent to the cost of credit card processing if they pay in cash (or by paper check or debit card).
What states is it illegal to charge extra for credit card?
It’s illegal to charge fees in these states Here are the five states where it’s illegal: Colorado, Connecticut, Kansas, Maine and Massachusetts. While it’s illegal for businesses to charge credit card surcharge fees in these states, there are two things to note.
Is it legal to pass credit card fees to customers?
California has a law, California Civil Code section 1748.1, that prohibits retailers from adding a surcharge when a consumer chooses to use a credit card instead of paying by cash. In March 2015, a federal court found the statute unconstitutional and prohibited the Attorney General from enforcing it.
Is it legal to charge a credit card fee in NY 2021?
The NYS Court of Appeals recently clarified NYS GBL 518 as follows: Merchants can charge two different prices for purchases – by credit card and by cash; The higher price charged to credit card users must be tagged and posted for consumers in actual “dollars and cents” form; and.
Can I charge a credit card fee in Florida?
Florida has a law prohibiting credit card surcharges, but that law was held unconstitutional by federal courts. Therefore, merchants in Florida may add a surcharge to credit card purchases.
Is it legal to surcharge debit cards?
Can I assess a surcharge on both credit and debit card purchases? No. The ability to surcharge only applies to credit card purchases, and only under certain conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.
Are surcharges legal in North Carolina?
Surcharges apply only to credit card purchases; they may not be tacked onto debit or prepaid card purchases. In no event may the surcharge exceed 4%. And, while North Carolina, at this time, has no laws further complicating this issue, ten states od (none are contiguous to North Carolina.
Is it legal to charge credit card fees in NY?
As part of its seven-part consumer alert holiday series, the New York State Division of Consumer Protection is reminding consumers that credit card surcharges are prohibited in New York State.
Is it legal to charge a credit card processing fee in Illinois?
Retailers in 40 U.S. states, including Illinois, can charge up to 4 percent extra when consumers pay for goods and services with a credit card. The fees are illegal in California, New York, Texas and seven other states. It is up to individual businesses to decide whether or not to add the fee.
What is the difference between a surcharge and a convenience fee?
Convenience fees are charged by businesses to cover the cost they pay to payment processing companies for when a customer pays by credit card. A convenience fee is different from a surcharge, which is a charge simply for just using a credit card. Surcharges are illegal in some states.
What is a surcharge fee?
Surcharges are fees that a retailer adds to the cost of a purchase when a customer uses a charge/credit card. A surcharge is a percentage of the value of the sale. For example, if a cardholder purchases $100 in office supplies, a merchant may add a surcharge of 3% to the total purchase.
Is it legal to charge a credit card fee in NJ?
It is indeed legal. Business owners must pay credit card processing fees, said Lisa McKnight, a certified financial planner with Peapack Private Wealth Management in New Providence. The fees can vary depending on the type of credit card used and the payment processing system used, she said.
Is it illegal to charge a credit card fee in Georgia?
Businesses need to provide notice of their policies and other material information before the consumer makes a decision to purchase. The failure to include the surcharge or fee in an advertised price could be considered an unfair or deceptive practice, and potentially be a violation of Georgia law.
Can you charge a credit card fee in Colorado?
Under Colorado law, it is illegal for any merchant to impose a surcharge on a purchaser or lessee who elects to use a credit or charge card in lieu of payment by cash, check, or similar means.