A. A surcharge is an additional fee charged when a customer pays with an eligible credit card. Under Visa and Mastercard rules, surcharges cannot be applied to debit or prepaid cards.

A convenience fee is charged for the convenience of using an eligible alternative payment channel—not simply for using a credit card. For example, Visa generally requires a convenience fee to be a flat amount, clearly disclosed, and charged for a payment channel different from the merchant’s normal channel.

Convenience fee requirements vary by card network, merchant category, and payment channel. Government and education fee programs may have different requirements. Contact IntelliPay to determine which fee program your organization qualifies for

To discover whether a surcharge or convenience fee is right for your situation, talk to one of our experts today.

A. Start with your card mix and where you sell. A surcharge recovers nothing on debit cards, so it works best when most customers pay by credit. It’s also banned for private businesses in Connecticut, Maine, Massachusetts, and Puerto Rico. Government agencies, schools, and utilities usually do better with a service fee. Compare the options in our guide to surcharging, dual pricing, convenience fees, and service fees, or talk to one of our experts.

Also see our Passing fees onto customers guide 

. To learn more or get your questions answered, talk to one of our experts.

A. Only within the card network rules. You can surcharge at the brand level, meaning all of one brand’s credit cards, or at the product level, meaning a specific card type such as premium or commercial cards, but not both for the same brand. You can’t pick individual banks or individual customers. Each surcharge must stay at or below your cost for that brand or product.

A. For Visa credit cards, the surcharge cannot exceed your applicable merchant discount rate or 3%, whichever is lower. For Mastercard credit cards, the maximum is generally the lower of your applicable cost of acceptance and 4%. Product-level surcharges have additional calculation requirements.

State law may impose a lower limit or prohibit surcharging. Your processor’s program may also apply a lower maximum. Mastercard’s 4% limit does not mean you can apply a 4% surcharge across all card brands.

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If you have other questions about surcharge fees or surcharging in general, talk to one of our knowledgeable consultants.

A.  Yes, if you use product-level surcharging. Visa allows a surcharge on a specific card product, such as commercial cards, at or below your cost for that product. I

f you surcharge at the brand level instead, the same rate applies to all of that brand’s credit cards, consumer and business alike. Business debit cards can never be surcharged. See B2B Credit Card Surcharging in 2026.

See also our B2B surcharging guide.

A.  Yes. For a full refund, return the entire surcharge. For a partial refund, return the surcharge in proportion to the amount refunded.

A. Surcharging is prohibited for private businesses in Connecticut, Maine, and Massachusetts, and in Puerto Rico. Puerto Rico also bars cash discounts. Texas has a ban in state law whose enforceability is disputed, so consult a Texas attorney first. Louisiana bans debit surcharges as of August 1, 2026. See our state-by-state surcharge guide.

For current compliance guidance specific to your state, see our guide or contact our experts.

A. A product-level surcharge applies to a specific card product, such as premium rewards or commercial cards, regardless of which bank issued the card. Under Visa’s rules, it can’t exceed your cost of accepting that product and never more than 3%. You must choose brand-level or product-level surcharging for a brand, not both. Disclosure, notice, and debit card rules are the same as for any surcharge.

A. Yes. Visa requires you to notify your acquiring bank at least 30 days before you begin surcharging.

For Mastercard, confirm the current advance-notice requirements with your acquiring bank. Mastercard currently states that U.S. merchants do not need to register their intent to surcharge directly through its surcharge-registration website while it updates its rules. This does not mean you should skip your acquiring bank’s notification or approval process

A. Visa can assess a $1,000 fine for a confirmed violation, escalating to $25,000, and more if it isn’t fixed, and the amounts add up. The fine is assessed to your processor’s bank and usually passed on to you, and you may have to refund customers. Fix problems as soon as you find them. See 7 Surcharge Mistakes That Still Get Merchants Fined.

Also see our surcharging mistakes guide.

A. This is the hardest surcharge question. American Express requires equal treatment across the payment products you accept, including debit, while Visa and Mastercard ban debit surcharges. You can’t follow both rules to the letter if you surcharge Amex. Get written guidance from your processor before deciding.

A. Not yet. The revised settlement received preliminary approval in June 2026, and a final approval hearing has been scheduled for November 2026. If it becomes final, merchants could decline whole tiers of cards and surcharge by brand or card type, capped at 3% or cost. Don’t change your program based on it until the final rules are published.

A. Usually, yes. Your terminal, gateway or invoicing system must calculate the surcharge, exclude debit and prepaid cards automatically, and show the surcharge as a separate receipt line. In your books, track surcharge amounts separately so you can reconcile them and refund them correctly. In some states, surcharges may be subject to sales tax, so check with your accountant.

Talk to us to learn how to get started with surcharging today.

Yes, surcharging creates accounting considerations:

What changes:

• Revenue tracking: Surcharges are typically recorded as revenue, not fee reductions
• Tax implications: Determine if surcharges are subject to sales tax in your jurisdiction
• Separate line items: Surcharges must be tracked separately from product/service revenue
• Reconciliation: More complex matching between POS and accounting systems

Lo que necesitas:

• POS software that separately tracks surcharge amounts
• Accounting software configuration for surcharge revenue category
• Updated reconciliation procedures
• Tax compliance review

Consult: Your accountant, tax advisor, software providers, and IntelliPay about proper setup before launching surcharging.

A. Yes. Customers must be told before they pay: at the store entrance or website entry, again at checkout, and on the receipt. Many merchants also give regular customers advance notice by email or on invoices before the program starts, which cuts down on surprises and complaints

Verify state-specific signage rules with legal counsel before implementing.

A. Post a sign at the store entrance and another at the point of sale stating that you surcharge credit cards, the amount, and that it doesn’t exceed your cost. The customer must see the surcharge before paying and have the chance to pay another way. Show the surcharge as its own line on the receipt, and make sure debit and prepaid cards aren’t surcharged.

Signage requirements:

• At entry: Post notice customers will see before entering
• At checkout: Display at all points of sale
• Content must include: Surcharge percentage, that it doesn’t apply to debit cards
• Multiple locations: May need signs at each entrance/checkout

Online disclosure:

• Clear notice throughout checkout process
• Before final payment confirmation
• Must meet state-specific e-commerce requirements

State variations: California, New York, and other states have specific language and display requirements.

Verify state-specific signage rules with legal counsel before implementing.

A. Disclose the surcharge on your website before checkout, where card brands are first shown or where customers choose how to pay, and show the exact amount before the customer completes the payment. Include it as a separate line on the email or online receipt. Your checkout should detect debit and prepaid cards and remove the surcharge automatically.

A. For mail and phone orders, tell the customer about the surcharge and the amount before you process the card, so they can choose another way to pay. Show the surcharge as a separate line on the receipt or invoice you send. The same rules apply: credit cards only, no more than your cost, and no surcharge in states that ban it.

Best practice: Document that surcharge was disclosed during phone conversation for compliance records.

A. Credit cards only; never debit or prepaid. The surcharge can’t exceed your cost of acceptance, with Visa capped at 3% and Mastercard at 4%. Give your processor 30 days’ notice before you start. Disclose the surcharge at entry, at checkout, and on the receipt. Apply it consistently at the brand or product level. Refund it in proportion when you refund a sale. Don’t combine it with a convenience fee on the same transaction.

A. A surcharge is a fee added only when a customer pays by credit card. Dual pricing shows two prices up front: a card price and a lower cash price, so it functions as a cash discount rather than a card fee. Dual pricing is generally allowed even where surcharging is banned, and it also recovers costs on debit card payments. Puerto Rico is the exception: its regulators interpret the law to forbid cash discounts.

A. Some customers will notice, and a few will push back. Clear signs before checkout, a simple explanation, and an easy no-fee option such as cash, debit, or ACH keep complaints low. Surprises at the register cause the most trouble. If customer reaction is a big concern, dual pricing often lands more softly because the price the customer sees up front is the price they pay.

Before implementing: Consider your specific customer base, competitive landscape, and tolerance for potential negative feedback.

A. Yes. Dual pricing shows a card price and a lower cash price. A convenience fee is a flat fee for an alternative payment channel. A service fee is available to eligible government agencies, schools and utilities. You can also encourage ACH payments and lower your card costs with better transaction data. See Surcharging vs. Convenience Fees vs. Dual Pricing.

Talk to IntelliPay about which option works best for your business.