Surcharge Basics
Surcharging is the practice of charging an additional percentage fee to credit card transactions to offset payment processing costs.
Regional Availability
As of March 2024, most U.S. states allow merchants to surcharge on credit card transactions. However, the following jurisdictions have specific laws prohibiting surcharging:
Connecticut
Maine
Massachusetts
New York
Puerto Rico
Compliance Requirements
If your state allows surcharging, major credit card brands require you to follow specific procedures before implementation:
Requirement | Description |
30-Day Notice | You must notify credit card brands of your intent to surcharge. Note: Our support team handles this notification for you. |
Client Notification | You must notify clients no later than the day you implement fees (e.g., via invoice notes or office signage). |
3% Fee Cap | Surcharges cannot exceed 3%. Note that some states (NJ, CO, OK) may have lower legislative caps. |
Credit Only | Strict Rule: You cannot surcharge debit card transactions. Fees apply to credit cards only. |
New Feature Update
eCheck Surcharge Support: eCheck surcharge is now supported, allowing firms to apply compliant surcharges without interrupting their billing workflows.
Scheduled Payments Management
Scheduled Payments now include enhanced search and filtering, along with an updated management screen designed for high-volume schedules. Payer name visibility and improved filtering make it easier to quickly find and manage recurring charges.