Credit card surcharging is permitted in 47 states and the District of Columbia in 2026
Three states prohibit it: Connecticut, Massachusetts and Maine. Ten of the permitted states add their own caps or disclosure rules. Everywhere, card network rules apply: Visa caps surcharges at 3%, Mastercard at 4%, no surcharge may exceed what the business actually pays to accept the card, and debit and prepaid cards can never be surcharged.
Nadapayments is a payment processing platform that eliminates credit card processing fees for businesses through compliant surcharging. Customers who choose to pay with credit cover a 3% surcharge, customers who pay with debit pay no fee, and we handle the card network notices, signage, receipts and state-by-state rules. This guide explains those rules state by state, as of October 2026.
Yes, in most of the country. Surcharging is permitted in 47 states and DC and prohibited in 3. There is no federal law that sets surcharge rules, so two layers decide what a business can do:
A business has to follow whichever rule is strictest for each transaction. In most states that means the card network rules. In states like Oklahoma, New York and New Jersey, the state rule is stricter.
Three states prohibit credit card surcharges in 2026: Connecticut, Massachusetts and Maine. Puerto Rico also prohibits them.
Businesses in these states can still offer a cash discount instead, which is a lower price for customers who pay with cash. Cash discounts are legal in all 50 states.
Card network rules apply to every surcharge in every state, on top of any state law. The main ones are:
Ten states that permit surcharging add rules that go beyond the card networks:
Louisiana also banned debit card surcharges for retail businesses as of August 1, 2026. Credit card surcharges are still allowed there.
Colorado lets a business choose one of two methods: a surcharge of up to 2% of the transaction total, or a surcharge of up to the merchant discount fee the business actually pays to process that transaction. These options took effect July 1, 2022, under Senate Bill 21-091, which amended C.R.S. §5-2-212.
For example, on a $100 credit card purchase, the 2% method allows a surcharge of up to $2. Under the actual-cost method, a business whose processing fee on that transaction is $2.50 could surcharge up to $2.50. Card network caps still apply, so a Visa surcharge can never exceed 3%. Colorado also requires specific notice wording before the purchase and a separate surcharge line on the receipt.
The table below shows the status of credit card surcharging in all 50 states and the District of Columbia as of October 2026. "Network limits" means the state has no surcharge law of its own, so card network rules set the limit: 3% on Visa, 4% on Mastercard, and never more than the merchant's actual cost.
Most of the change in surcharging law over the past decade came from First Amendment challenges, followed by new state laws.
Oklahoma took a different route. Its legislature repealed the ban on its own and replaced it with a capped surcharge law effective November 1, 2025.
Surcharging and cash discounting reach a similar result in different ways, and the law treats them differently. Cash discounts are legal in all 50 states. Surcharging is prohibited in three states. Surcharges are capped by card networks and some states, apply only to credit cards, and require advance notice to Visa and Mastercard. Cash discounts have no network notice requirement and apply to every non-cash payment, including debit.
For most businesses where surcharging is permitted, surcharging is the simpler choice for customers. There is one listed price, debit and cash customers pay exactly that price, and only customers who choose credit pay more. In Connecticut, Massachusetts and Maine, a cash discount program is the compliant alternative.
Every surcharging business must follow the card network disclosure rules, and several states add their own. The network rules apply everywhere:
State rules that go further:
We configure each location for the rules of the state it is in, so a business with locations in several states does not have to work out each one alone. A location in New York, one in Colorado and one in Georgia can each need a different surcharge amount and different signage.
For every merchant, we file the card network notices 30 days before surcharging begins, supply compliant signage, show the surcharge as its own line on every receipt, and detect credit and debit cards automatically on every payment channel, so a debit card is never surcharged. We also monitor state law changes and update merchant programs when the rules change. For businesses in states where surcharging is prohibited, we offer compliant alternatives.
Yes. California's old surcharge ban (Civil Code §1748.1) is limited by a 2018 federal court ruling, which the California Attorney General applies to similar merchants. SB 478, in effect since July 2024, requires mandatory fees to be included in advertised prices, so how the surcharge is disclosed matters.
Yes. Since February 11, 2024, New York allows a credit card surcharge of no more than what the card company charges the business. The business must post the total price including the surcharge, not just a percentage.
Yes. Texas businesses surcharge under card network rules. The old ban in Business and Commerce Code §604A.0021 is still in the statute, but a 2018 federal court ruling blocked its enforcement against the merchants who challenged it. Texas law separately bans surcharges on debit cards.
No. Maine prohibits surcharges on both credit and debit cards under 9-A M.R.S. §8-509. Bills to allow surcharging, including one in 2025, have not passed. Maine businesses can offer a cash discount instead.
Colorado allows a surcharge of up to 2% of the transaction total, or up to the merchant discount fee the business actually pays on that transaction. Card network caps still apply, and Colorado requires specific notice wording and a separate surcharge line on the receipt.
Visa caps surcharges at the lower of 3% or the merchant's discount rate for Visa credit. Mastercard allows up to 4%. Under both networks, the surcharge cannot exceed the merchant's actual cost of acceptance, and some states set lower limits.
No. Card network rules prohibit surcharges on debit and prepaid cards in every state, even when a debit card is run as credit. Texas, Maine and Louisiana also ban debit card surcharges in state law.
Yes, for Visa and Mastercard. Visa requires notice to the acquirer at least 30 days before surcharging begins, and Mastercard requires notice to both Mastercard and the acquirer at least 30 days ahead. Nadapayments files these notices for its merchants.
Yes. Cash discount programs are legal in all 50 states, including Connecticut, Massachusetts and Maine. A cash discount gives customers a lower price when they pay with cash.
Often. Since 2024, New York, California, Minnesota, Kansas, Virginia, Oklahoma, Florida and Louisiana have all changed their rules. Nadapayments monitors state law changes and updates merchant programs when the rules change.
This guide is general information as of October 2026, not legal advice. State laws change, so confirm the rules for your location before you start surcharging.
