Surcharging is the practice of adding a fee to a credit card transaction to help offset the cost of processing. Whether a merchant can apply a surcharge, and how it must be done, depends on both card network rules and local legal requirements.
1. Surcharging Is Only Allowed on Credit Cards
Merchants may only apply surcharges to credit card transactions.
Debit or prepaid card transactions cannot be surcharged under most card network rules.
2. Surcharge Amount Limits
Card network rules set caps on how much a merchant may surcharge:
In the United States, the maximum surcharge is generally limited to the merchant’s actual cost of acceptance, and cannot exceed the card network cap (around 3% for Visa and Mastercard).
Other regions may have different caps or restrictions based on local regulation or card schemes.
Merchants must ensure that the surcharge does not exceed these limits.
3. Clear Disclosure Required
Merchants are required to clearly disclose any surcharge to customers:
Disclosure must occur before the transaction is completed
Surcharge must be shown as a separate line item on the transaction receipt
Point-of-sale and point-of-entry notices must inform customers about the surcharge being applied
This transparency helps customers understand the charge they are paying.
4. Local Laws & State-by-State Rules
In addition to card network rules, local laws and regulations may govern or restrict surcharging.
For example:
Some U.S. states may prohibit or limit surcharging or require specific signage and disclosures.
International markets (such as Canada) have their own surcharge frameworks and provincial or federal requirements.
Merchants should always verify legal requirements for their specific location and market.
5. Business Considerations
Before implementing a surcharge, merchants should consider:
Customer perception — surcharges can impact customer experience
Fee transparency — how and where the surcharge will be disclosed
Alternative options, such as cash discounts, where permitted and compliant
A clear communication strategy often helps reduce customer confusion.
Summary
To surcharge credit card transactions in 2026:
Only apply to eligible credit card transactions
Ensure the surcharge does not exceed network caps or your cost of acceptance
Provide clear and prominent disclosure to customers
Comply with applicable local and state laws
Because rules vary by region and change over time, merchants should consult legal counsel or their acquirer before implementing a surcharge program.