Do’s and Don’t for Credit Card Surcharging

Do’s and Don’t for Credit Card Surcharging

Credit card surcharging is a practice whereby businesses charge customers an extra cost just for using a credit card to make a purchase. This fee, which is often a percentage of the final cost, is intended to cover the merchant’s expenses related to handling credit card transactions. Surcharging is a popular practice in many nations, but there are specific guidelines that merchants must follow to protect themselves from legal repercussions.

The following are some credit card surcharging dos and don’ts that US businesses should be aware of:


Disclose the surcharge cost: Before a client makes a transaction, merchants must distinctly and conspicuously disclose the surcharge price. This includes notifying customers of the fee and placing a sign at the point of sale.

Regardless of the type of credit card being used, merchants must consistently apply the premium to all credit card transactions.

Respect the law: Retailers who surcharge customers are required to respect all applicable laws and rules, including any state or federal laws.


Charge surcharge fees that exceed the actual cost of processing a credit card transaction.

Applying surcharges on debit card purchases.

Apply surcharges to credit card transactions without first getting approval from their acquiring bank or processor.

Charge in excess of 4% of the total transaction amount

Finally, even though credit card surcharging is a widespread practice in many nations, it is governed by stringent laws. In order to avoid legal consequences and to make sure they are in compliance with all applicable laws and regulations, merchants must be aware of the dos and don’ts of surcharging.