Information on Merchant Accounts,
Ecommerce and Credit Card Processing

December 12th, 2022 by J B

Credit Card Surcharging: What You Need to Know

Filed in: Merchant Accounts |

If you own a small business, you’re probably always looking for ways to increase your profits. One way you may be able to do this is by implementing a credit card surcharge. But what exactly is a credit card surcharge, and is it legal? Let’s take a look.

What is a Credit Card Surcharge?

A credit card surcharge is an additional fee that businesses can charge customers who use a credit card for payment. This fee is generally passed on to the customer by the merchant processor, and it covers the costs associated with processing credit card payments. For example, if you own a small business and you charge a 3.50% credit card surcharge, and someone pays for their purchase with a credit card that has a balance of $100, they will be charged an additional $3.50 at checkout.

Are Credit Card Surcharges Legal?

The short answer is yes, credit card surcharges are legal in most cases. However, there are some exceptions. For example, American Express prohibits merchants from adding a surcharge to American Express transactions. Additionally, some states have laws that restrict or prohibit surcharges, so it’s important to check the laws in your state before implementing one.

Should You Implement a Credit Card Surcharge?

There’s no easy answer to this question. Ultimately, you’ll need to weigh the pros and cons to decide if a credit card surcharge is right for your business. Some things you’ll want to consider include:

– Whether your customers are likely to be receptive to a surcharge

– The average transaction amount at your business

– The costs associated with processing credit card payments

– Any state or local laws that apply to your business

– Whether implementing a surcharge will help you increase your profits


Implementing a credit card surcharge can be a great way to boost your profits as a small business owner. However, there are some things you’ll need to take into consideration before making the decision to do so. Be sure to weigh the pros and cons carefully and consult with an attorney if necessary to ensure that you’re in compliance with all applicable laws.

Comments are closed.