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Compliant Surcharging
What is compliant surcharging?
A payment card surcharge is an additional fee added to a consumer’s bill when a customer pays with a credit card. In the U.S., compliant surcharging must follow card-brand rules and state laws: it is limited to eligible credit transactions, requires advance notice and registration, must be disclosed clearly, and must not exceed the merchant’s cost of acceptance or applicable brand caps.
| Requirement | Details |
|---|---|
| Eligible Transactions | Surcharging applies only to credit card transactions. Debit cards, prepaid cards, and non-U.S. issued cards must not be surcharged. |
| Notice & Registration (Envoy-Managed) | Merchants must allow at least 30 days before surcharging begins. Envoy will submit the required notice to the merchant's acquirer and complete card-brand registration on the merchant's behalf. Merchants must provide requested documentation and signing authority so Envoy can file within required timelines. |
| Surcharge Caps / No Profit | Surcharges must not exceed the merchant's cost of acceptance. Card-brand rules may impose additional caps (for example, Visa guidance commonly references a 3% maximum). Merchants may not profit from surcharging. |
| Clear Disclosure & Receipts |
The surcharge must be clearly disclosed:
|
| State Law Compliance | Some U.S. states restrict or prohibit surcharging. Merchants must verify that surcharging is legally permitted in their state before implementing the program. |
| Penalties for Non-Compliance | Card brands and acquiring banks may impose fines, remediation plans, or account action for violations. Penalties can escalate if compliance issues are not resolved promptly. |
Surcharging Reference Resources
For detailed rules and official guidance on merchant surcharging, review the following resources: Best Practice: Always review surcharging rules in accordance with your state laws, as regulations may vary by jurisdiction.
For detailed rules and official guidance on merchant surcharging, review the following resources: Best Practice: Always review surcharging rules in accordance with your state laws, as regulations may vary by jurisdiction.