Can I pass on credit card fees to my customers?

Yes, you can pass credit card fees to customers, but there are rules and regulations you must follow. The two legal ways to do this are surcharging and cash discounting.

1. Cash Discounting (Encouraging Cash Payments)
   • Legal in all 50 states when structured correctly. Instead of adding a fee for credit card payments, you offer a discount for cash purchases. The posted price is the "cash price," and credit card users simply pay the standard price.
   • No special registration with card networks is required.
2. Surcharging (Passing Fees to Credit Card Users)
   • Allowed in most states but not legal in Connecticut, Maine, Massachusetts, and Puerto Rico.
   • The fee must not exceed 3%–4%, depending on the card network rules.
   • You must notify Visa and Mastercard at least 30 days before implementing a surcharge.
   • Clear signage is required at the point of sale and on receipts.
   • Debit card transactions cannot be surcharged (even if processed as "credit").

Both methods can help eliminate credit card processing fees, but they must be implemented correctly to stay compliant.

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