Visa prohibits surcharge fees on debit and credit charges

Do you have a notice informing customers of a surcharge for using credit or debit? Careful, as this practice could land you in hot water. A checkout fee, or payment card surcharge, added onto a consumer’s bill when he or she uses a credit or debit card is against Visa rules, mirroring laws in 10 U.S. states.

Merchants can offer a discount for alternative payment methods such as cash or checks, but you cannot add on for charges.

State No Surcharge Laws Protect Consumers

10 States also Protect Consumers with No Surcharge Laws

It is prohibited by law for retailers to charge consumers a fee for using a credit card in some states. Consumers who are subjected to checkout fees in states where they are protected by law may report the retailer to their state attorney general’s office.
These states have laws on surcharging:
  1. California
  2. Colorado
  3. Connecticut
  4. Florida
  5. Kansas
  6. Maine
  7. Massachusetts
  8. New York
  9. Oklahoma
  10. Texas

Note: Certain industries are permitted to charge a ‘convenience fee’, where it is not prohibited by law. This will be covered in a future article.

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