Can I charge my customer the credit card fee?

Yes, you can charge customers a credit card fee, but you must follow specific rules to stay compliant. There are two legal methods to do this:

1. Credit Card Surcharging (Adding a Fee to Card Payments)
   • Allowed in most states ( NOT legal in Connecticut, Maine, Massachusetts, and Puerto Rico).
   • Must notify Visa & Mastercard at least 30 days in advance before implementing.
   • The fee cannot exceed 3%-4% (varies by card network).
   • Debit cards CANNOT be surcharged, even if run as "credit."
   • Signage required at the point of sale and on receipts.
2. Cash Discounting (Encouraging Cash Payments Instead)
   • Legal in all 50 states when done correctly.
   • Instead of adding a fee for card payments, you offer a discount for customers who pay with cash.
   • The advertised price is the cash price, and credit card users simply pay the standard price.
   • No special registration with card networks required.

Which One is Best for You?

• If you want to legally eliminate processing fees: Use a cash discount program or surcharge program (if allowed in your state).
• If your business has frequent debit card transactions: A cash discount program is better since debit cards can't be surcharged.
• If your customers are price-sensitive: Consider whether they’ll accept a surcharge or prefer a cash discount instead.

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