Sometimes. In the United States, a business may pass through a credit-card processing cost only when applicable federal, state and local law, and the card network’s rules all allow it. A nationwide rule does not make every surcharge lawful.
The Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect May 12, 2025. The FTC says a business may charge or pass through a payment-processing fee “if otherwise permitted by law.” Whether a particular fee is allowed depends on the card type, the state where the transaction occurs, the payment network, whether a no-fee payment option was genuinely available, and what the customer was told before paying.
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What kind of “extra” charge are you seeing?
Businesses use several labels for an added amount, including credit-card surcharge, card-processing fee, convenience fee or service fee. The label does not decide whether the charge is legal. The important questions are what triggered the amount, whether the customer could avoid it, and how and when it was disclosed.
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What the FTC’s federal fee rule requires
Effective date and basic permission
The FTC’s Rule on Unfair or Deceptive Fees became effective on May 12, 2025. Its FAQ states: “Businesses may charge or pass through credit card or other payment processing fees if otherwise permitted by law.” That wording is permission subject to other law, not a blanket federal authorization.
Federal disclosure rules therefore work alongside state statutes, local requirements, card-network rules and agreements between a merchant and its payment processor. A business must satisfy all of the applicable layers; complying with one does not excuse a violation of another.
When the fee must be in the displayed total
If a customer has no viable way to complete the same transaction without paying the fee, the amount is unavoidable. The FTC’s explanation says an unavoidable fee must be included in the total price shown to the consumer. A business should not advertise one mandatory total and reveal an additional processing amount only at the payment screen.
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For example, if an online seller accepts only credit cards for a particular purchase and adds a processing amount to every checkout, the customer cannot reasonably avoid that amount through the available payment flow. The displayed total needs to reflect the mandatory charge before the customer agrees to buy.
When a separate fee can be shown
If the customer can use a viable no-fee method for the same purchase and chooses a credit card instead, the card-related amount may be optional and shown separately, provided other law and network rules permit it. Before the customer agrees to pay, the business must clearly state:
- that the amount is a payment-processing or credit-card fee;
- why it is being charged; and
- the dollar amount or the calculation needed to determine it.
The final amount must be visible before payment is submitted. A statement buried in terms that a typical customer is unlikely to see does not provide the clear advance notice contemplated by the FTC guidance.
Card-network rules can impose a lower limit
Mastercard’s published U.S. cap
Mastercard’s U.S. merchant surcharge guidance says a merchant may surcharge Mastercard-branded credit cards only within its rules and applicable law. The guidance describes a maximum surcharge cap of 4 percent. That is not a universal amount that every merchant may charge: the permitted figure is also limited by the merchant’s actual cost of acceptance and can therefore be lower.
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Visa and other networks
Visa’s surfaced merchant FAQ discusses brand-level and product-level approaches and tells merchants to check state law. That FAQ is old, so it should be treated as background rather than a current operational checklist. A business should obtain the current rules for every network and card product it accepts from the network and its merchant acquirer before implementing a surcharge.
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Credit is not the same as debit or prepaid
Do not assume that a rule allowing a credit-card surcharge also allows a charge on a debit card, prepaid card or stored-value card. Network rules and state laws may treat those products differently. The customer should identify which card product was used, and the merchant should verify the specific network rule instead of applying one percentage to every card transaction.
State and local law can change the answer
The transaction’s location matters. State statutes, local ordinances, court decisions and regulatory actions can impose bans, notice requirements or exceptions that differ from federal guidance and from one state to another. The following official examples illustrate the variation; they are not a complete state-by-state survey.
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| Jurisdiction | What the surfaced official text says | Practical implication |
|---|---|---|
| Florida | The 2026 statute text says a seller or lessor in a sales or lease transaction may not impose a surcharge for electing to use a credit card instead of cash, check or similar means, subject to statutory terms and exceptions. | A Florida transaction may be restricted even if the merchant’s network agreement would otherwise permit a surcharge. |
| Texas | The statute defines surcharge language to address a price increase imposed on a buyer who pays with a credit, debit or stored-value card rather than another method. The surfaced section is titled “Prohibition of Certain Surcharges.” | The excerpt alone does not establish a complete current Texas conclusion. Review the full statute and relevant case law for the transaction. |
| Kansas | The statute surfaced for the 2025–26 session says a retailer may not impose a surcharge on a credit-card customer unless the amount is disclosed by clear and conspicuous notice at the point of entry or sale and before the transaction. | Advance notice is a stated condition in the cited provision; a receipt-only disclosure would not satisfy that timing requirement. |
These examples show why “credit-card surcharges are legal in every state” is unsafe. A state can regulate the fee even when federal guidance and a card network allow it. Local rules and later amendments can also change the result, so check the law in the place where the sale occurs.
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A consumer’s step-by-step way to evaluate a fee
- Identify the payment product. Check whether the transaction used a credit card, debit card, prepaid card or another stored-value product. The answer may differ by product and network.
- Look for a genuinely usable no-fee option. Ask whether the same purchase could have been completed through the same business and platform with cash, check, bank transfer or another method without the added amount. An option that is unavailable for the transaction, unusable online or disclosed only after payment may not be a practical way to avoid the fee.
- Check the timing of disclosure. Find the fee on the advertised price, checkout page, order form, posted sign or other point-of-interaction notice. The amount and purpose should be clear before you agree to pay, not revealed for the first time on the receipt.
- Compare the stated and charged amounts. Keep a screenshot or photograph of the notice and compare it with the receipt. A fee stated as a percentage should produce the disclosed dollar amount on the transaction record.
- Determine the governing location. For an in-person sale, start with the state and locality where the transaction occurred. For an online sale, examine the seller’s terms and the locations connected to the transaction, then seek advice on which jurisdiction governs if the issue is disputed.
- Check the network and processor conditions. A Mastercard credit surcharge, for example, remains subject to the published cap, cost-based limit and notice rules. Other networks can have different requirements.
- Ask for a correction in writing. Send the merchant the receipt, the notice you saw and a concise explanation of the discrepancy. Request removal or a refund if the charge was not disclosed, was applied to the wrong card type or appears inconsistent with the governing law.
If the merchant does not resolve the issue, contact the card issuer and the relevant state or local consumer-protection office. Provide documents rather than relying on a verbal description. A complaint does not itself determine whether the fee is lawful, but the records allow the agency or issuer to evaluate it.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What a business should verify before adding a surcharge
Implementing a card fee is a compliance project, not just a point-of-sale setting. A merchant should complete these checks for every jurisdiction and card brand it accepts:
- Map the jurisdictions. List the states and localities in which customers transact and identify restrictions, disclosure rules, exceptions and recent changes.
- Classify each card product. Separate credit, debit, prepaid and stored-value cards. Do not configure one rule for all card numbers unless the applicable law and network rules truly permit that treatment.
- Calculate the permitted amount. Confirm the network cap and any cost-based limit. Under Mastercard’s published U.S. guidance, 4 percent is a maximum cap, not an automatic entitlement; the merchant’s actual acceptance cost can require a lower figure.
- Notify the network and acquirer when required. Current network and processor procedures may require advance registration or notice. Obtain the current instructions directly from those parties because operational rules can change.
- Design the customer notice. State that the amount is a credit-card or payment-processing fee, explain its purpose and show the amount or calculation. Place the notice where the customer makes the payment decision, including an online checkout or an in-store point of interaction.
- Show the correct total. If the amount is unavoidable because there is no viable no-fee method for the same transaction, include it in the displayed total price. If it is optional, present it separately but before agreement and payment.
- Print the receipt correctly. Show the surcharge as a separate dollar amount when the network requires that disclosure, and ensure the receipt matches the amount shown at checkout.
- Test edge cases. Check refunds, split tenders, recurring payments, phone orders, online orders and transactions in which a customer changes from credit to debit. Document how the system handles each case.
- Train staff and audit regularly. Employees should know which payment methods incur a fee and how to answer questions. Review signs, website text, receipts and processor settings after legal or network updates.
Common situations and how the rules apply
| Situation | Key issue | What to verify |
|---|---|---|
| A store offers cash at one price and adds a clearly posted amount for credit | Whether the no-fee option is viable and the fee is disclosed before the sale | State and local law, card-network cap, point-of-sale notice and receipt amount |
| An online checkout adds a processing fee to every order | Whether customers can complete the same order through the same platform without the fee | If no viable option exists, the mandatory amount belongs in the displayed total under the FTC explanation |
| A merchant adds the same fee to debit and credit cards | Debit and prepaid products may not follow credit-card surcharge rules | The specific network rules and applicable state law for each product |
| The first notice appears on the receipt | Disclosure came after the payment decision | Whether the law and network require point-of-interaction or pre-transaction notice |
| The posted percentage is within 4 percent but exceeds the merchant’s processing cost | Mastercard’s cost-based limits may make the charge too high | Actual acceptance costs and the current network guidance |
When professional advice is warranted
General federal guidance cannot resolve every transaction. A business operating across states, a customer disputing a substantial fee, or anyone dealing with a local ban, injunction or unusual online transaction should obtain advice from a lawyer familiar with payment law in the relevant jurisdiction. Ask specifically about the card product, transaction channel, disclosure language, advertised pricing and the current network and processor rules.
For a particular charge, the most useful records are the advertisement or menu, checkout screen, posted notice, receipt, card statement, date and location of the transaction, and any message exchanged with the merchant. Those details determine whether the amount was avoidable, disclosed in time and calculated under the right rule.
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