Mis à jour en octobre 2026
IntelliPay is a PCI DSS Level 1 certified payment processor working with businesses, utilities, schools, and government agencies nationwide. This guide covers where surcharging is banned or restricted, which interchange laws are actually in effect, and what changed in 2026.
Lecture rapide
Credit card surcharging is legal in most of the country. Four places ban it, several more cap it, and debit cards can never be surcharged.
- Banned for private businesses: Connecticut, Maine, Massachusetts and Puerto Rico. Puerto Rico also bars cash discounts.
- Capped or restricted: Oklahoma caps surcharges at 2% or cost, and Colorado limits them to 2% or your actual processing cost. New York, California and Minnesota add price display rules. Texas is contested.
- Everywhere: No surcharge on debit or prepaid cards. Never more than your actual cost. Visa caps at 3%.
- Interchange laws: Illinois’s tax-and-tip law is blocked for most banks and pushed to July 2027. The federal debit cap and the Visa and Mastercard settlement are both still in court.
Laws are changing fast. Check your state before you start, and again every year.
Key Facts: Surcharge and Interchange Laws in 2026
- Maine law prohibits sellers from adding surcharges to credit or debit card payments, but allows government entities to surcharge (Maine Bureau of Consumer Credit Protection).
- Puerto Rico’s Law 150 bans surcharges on credit and debit cards, its consumer affairs department interprets the law to forbid cash discounts too, and the First Circuit upheld the law in 2025.
- Oklahoma’s SB 677 took effect November 1, 2025, allowing credit card surcharges capped at the lesser of 2% or the seller’s actual processing cost (Oklahoma Legislature).
- Louisiana banned debit card surcharges by retail businesses effective August 1, 2026.
- On June 1, 2026, a federal court permanently blocked Illinois’s interchange fee limit for national banks, federal savings associations, out-of-state state banks and card networks. The legislature also delayed the law to July 1, 2027.
- A federal court vacated the debit interchange cap (Regulation II) in August 2025 but stayed its ruling pending appeal, so the 21-cent-plus-0.05% cap remains in effect.
What Surcharge Rules Apply in Every State?
Card network rules apply everywhere, on top of state law. If you surcharge, these are the floor:
- Credit cards only. Debit and prepaid cards can’t be surcharged, even if the customer runs a debit card as credit.
- Never more than your cost. Visa caps surcharges at 3% and Mastercard at 4%, and neither lets you charge more than your actual cost of acceptance. If you accept Visa, 3% is your practical ceiling.
- Notice first. Visa requires you to notify your processor at least 30 days before you start.
- Disclose it everywhere. Post notice at the store entrance or website entry, again at the point of sale, and show the surcharge as its own line on the receipt.
- State law can only make it stricter. Where a state cap is lower than the network cap, the lower number wins.
A cash discount or properly set up dual pricing program is a different thing. It discounts from the card price rather than adding a fee, which is why it is generally allowed even in states that ban surcharges. Puerto Rico is the exception: its consumer affairs department interprets the law to forbid cash discounts too. How you display the two prices still matters, so check your state’s pricing rules.
Which States Ban or Restrict Credit Card Surcharges?
These states have specific surcharge rules as of October 2026. States not listed follow card network rules, plus their general consumer protection laws.
| State | Statut | What to know |
|---|---|---|
| Connecticut | Banned | State law prohibits credit card surcharges. Cash discounts are allowed. |
| Maine | Banned for sellers | Sellers can’t surcharge credit or debit cards under 9-A M.R.S. §8-509. Government entities may surcharge, within limits. Discounts from the regular price are allowed. |
| Massachusetts | Banned | State law prohibits credit card surcharges. Cash discounts are allowed. |
| Porto Rico | Banned, including cash discounts | Law 150 (10 L.P.R.A. §11) bans surcharges on credit and debit cards. A 2013 amendment removed the cash discount allowance, and the Department of Consumer Affairs (DACO) interprets the law to forbid cash discounts too. The First Circuit upheld the law in 2025. Dual pricing is not a safe workaround here. |
| Colorado | Capped (2% or cost) | Under C.R.S. §5-2-212, you can use either a cap of 2% of the payment or a cap equal to your actual merchant discount fee. Colorado requires specific wording in your notice, and the surcharge can’t apply to cash, check, debit or gift card payments. HB25-1090, effective January 1, 2026, requires mandatory fees to be in the advertised price. A properly disclosed card fee that customers can avoid by paying another way is generally treated as avoidable. |
| Oklahoma | Capped at 2% (new) | SB 677, effective November 1, 2025, repealed the old ban. Surcharge limited to the lesser of 2% or actual cost, must be posted at entry and point of sale, and can’t apply if a credit card is the only payment method you accept. |
| New York | Allowed with price display rules | You must post the total credit card price in dollars and cents wherever prices appear. A sign saying “3% added for cards” isn’t enough. The surcharge can’t exceed your processing cost. |
| Californie | Allowed with price rules | The old surcharge ban was struck down in court, but SB 478 requires mandatory fees to be included in the advertised price. Consult counsel before surcharging consumers. |
| Minnesota | Allowed with conditions | State law allows up to 5%, but network caps are lower. The surcharge must be avoidable, and mandatory fees must be in the advertised price. |
| Kansas | Allowed with notice | Surcharging permitted since January 1, 2025, with clear notice of the amount in advance. |
| Texas | Contested | Business and Commerce Code §604A.0021 bans credit card surcharges, with exemptions for government entities and private schools. A 2018 federal ruling (Rowell v. Paxton) found the ban unconstitutional as applied to the merchants who sued, but the Attorney General’s 2019 opinion (KP-0257) says it can still be enforced in some situations, with penalties up to $500 per violation. A separate section bans debit surcharges. Consult a Texas attorney first. |
| Louisiana | Debit ban (new) | Effective August 1, 2026, retail businesses can’t surcharge debit cards. Credit card surcharging is unaffected. |
| Virginia | Allowed with disclosure | Surcharge disclosure rules were updated in 2025. Post the surcharge clearly before the sale. |
For the network rules side of this and the mistakes that most often get merchants fined, see 6 Surcharge Mistakes That Still Get Merchants Fined.
Which Interchange Fee Laws Are Actually in Effect?
Surcharge laws control what you can charge customers. Interchange laws control what banks can charge you. In 2026, every major interchange change is still tied up in court.
Illinois Interchange Fee Prohibition Act (IFPA)
The IFPA would bar interchange fees on the sales tax and tip portions of a card payment in Illinois. Its path has been anything but straight:
- February 10, 2026: A federal court upheld the tax-and-tip interchange ban but blocked the law’s data use limits for certain issuers.
- Spring 2026: The Office of the Comptroller of the Currency issued an order preempting the IFPA for national banks.
- June 1, 2026: The court permanently blocked the interchange limit for national banks, federal savings associations, out-of-state state banks and card networks. Illinois-chartered banks and credit unions are still covered.
- Effective date: The legislature pushed the law back to July 1, 2027, and further appeals are expected.
What to do now: Nothing changes on your statement today. If you process in Illinois, ask your processor how it will handle tax and tip amounts if any part of the law takes effect.
Federal debit interchange cap (Regulation II)
The Federal Reserve’s cap limits debit interchange for large issuers to 21 cents plus 0.05% of the sale, plus a 1-cent fraud adjustment. In August 2025, a federal court in North Dakota ruled the Fed set the cap too high and vacated it, but stayed that ruling while the Fed appeals to the Eighth Circuit. A Kentucky court reached the opposite conclusion, so the question may reach the Supreme Court. The Fed’s 2023 proposal to lower the cap is also still pending. For now, the current cap remains in force.
Visa and Mastercard settlement
A revised settlement received preliminary approval on June 9, 2026. If it becomes final, it would lower average credit interchange by about 10 basis points for five years, cap standard consumer credit interchange at 1.25%, let merchants decline whole tiers of cards, and allow surcharging at the brand or product level, capped at 3% or cost. A final approval hearing has been reported for November 16, 2026, and appeals are expected. None of it is in effect yet.
How Do These Laws Apply to Governments and Utilities?
Government agencies, utilities and schools usually don’t surcharge at all. Most use a service fee or convenience fee model, often collected by a third-party processor, because those programs are built for tax, utility and permit payments and follow their own card network rules. Some state surcharge laws also treat government differently. Maine bans seller surcharges but lets government entities surcharge within limits, and Texas exempts government entities and private schools from its surcharge ban. Check your state’s rules for public entities and your processor’s program terms before choosing a model. Our guide to building a surcharge program that survives an audit covers when a service fee is the better fit.
Before You Start Surcharging: A Checklist
- ☐ Confirm surcharging is legal in every state where you sell, not just where you’re located.
- ☐ Calculate your actual cost of acceptance. Your surcharge can’t exceed it.
- ☐ Notify your processor at least 30 days before you start.
- ☐ Confirm your system automatically skips debit and prepaid cards.
- ☐ Post notice at entry, at checkout and on the receipt, and follow any state price display rules.
- ☐ Recheck state laws at least once a year. Three states changed their rules in the last 12 months.
Le point essentiel
Surcharging is legal in most states, but the details decide whether you’re compliant. Know your state, never surcharge debit, and keep the fee at or below your cost.
Not sure which fee model fits your state and business? Talk with an IntelliPay consultant.
Parlez à un consultantOù IntelliPay s'intègre
IntelliPay supports surcharge, dual pricing, convenience fee and service fee programs, with transparent interchange-plus pricing and no junk fees. We help businesses, utilities and government agencies choose the model that fits their state and set it up to card network rules.
We can’t tell you whether a specific fee is legal for your business. That’s a question for your attorney. But we’ll walk you through the network rules and how our programs handle debit cards, disclosures and caps.
Questions fréquemment posées
Which states ban credit card surcharges in 2026?
Credit card surcharging is prohibited for private businesses in Connecticut, Maine and Massachusetts, and in Puerto Rico. Several other states cap surcharges or require the total card price to be displayed.
Is credit card surcharging legal in New York?
Yes, if you post the total credit card price in dollars and cents wherever prices appear. A sign announcing a percentage fee isn’t enough, and the surcharge can’t exceed your processing cost.
Quel est le montant maximum de la surtaxe sur carte de crédit ?
Visa caps surcharges at 3% and Mastercard at 4%, and neither allows more than your actual cost of acceptance. Oklahoma caps surcharges at 2% or your cost, whichever is less. Colorado lets you use either a 2% cap or a cap equal to your actual processing cost. If you accept Visa, 3% is your practical ceiling.
Can I surcharge debit cards?
No. Card network rules prohibit surcharging debit and prepaid cards in every state, even when a debit card is run as credit. Texas, Maine and, since August 1, 2026, Louisiana also ban debit surcharges by state law.
Is the Illinois Interchange Fee Prohibition Act in effect?
No. In June 2026, a federal court permanently blocked its interchange limit for national banks, federal savings associations, out-of-state state banks and card networks, and the legislature delayed the law to July 1, 2027. Illinois-chartered banks and credit unions remain covered, and appeals are expected.
Is the federal debit interchange cap still in effect?
Yes. A federal court vacated Regulation II in August 2025 but stayed its ruling pending the Federal Reserve’s appeal, so the 21-cent-plus-0.05% cap remains in force for now.
Is dual pricing legal in states that ban surcharges?
Generally yes, when it’s set up as a discount from the card price rather than a fee added for cards. Puerto Rico is the exception, because its regulators interpret the law to forbid cash discounts too. States still regulate how prices are displayed, so check your state’s rules.
Can government agencies surcharge card payments?
Sometimes, but most use service fee or convenience fee programs instead. Some states treat government differently. Maine bans seller surcharges but allows government entities to surcharge within limits, and Texas exempts government entities from its surcharge ban.
Lecture suggérée
- Est-il légal de répercuter les frais de carte de crédit sur les clients ? (2026)
Une réponse en langage clair, avec comparaison de chaque modèle de frais. - Surcharging vs. Convenience Fees vs. Dual Pricing (2026)
How each fee model works and how to choose. - You Decided to Surcharge. Here Are the 6 Mistakes That Still Get Merchants Fined
The most common compliance errors. - Build a Surcharge Program That Survives an Audit
Documentation, controls, and when a service fee is the better choice. - FTC’s Rule on Unfair and Deceptive Fees
What the federal junk fee rule requires and who it covers. - IntelliPay Payment Models
Dual pricing, surcharging, convenience fee and service fee options.
Sources
- Maine Bureau of Consumer Credit Protection, Frais supplémentaires sur les cartes de crédit et de débit
- Justia, 10 L.P.R.A. §11: Prohibition on surcharge for credit card use
- ABA Banking Journal, Le Premier Circuit juge que la loi fédérale ne préempte pas la loi de Porto Rico sur les frais supplémentaires de carte de crédit (2025)
- Justia, Texas Business and Commerce Code §604A.0021
- Texas Attorney General, Opinion KP-0257 (2019)
- DWMK, Les vendeurs et les bailleurs sont limités dans les frais supplémentaires pour cartes de crédit imposés aux consommateurs et aux locataires (C.R.S. §5-2-212)
- Colorado Division of Real Estate, HB25-1090 Summary
- Oklahoma Legislature, Enrolled Senate Bill 677 (effective November 1, 2025)
- Stinson LLP, Changes to Virginia and Oklahoma Surcharge Laws (2025)
- Merchant Marvels, Les frais supplémentaires sont-ils légaux dans votre État ? Un guide État par État 2026 (Loi de Louisiane 751)
- Ballard Spahr, Illinois Interchange Fee Law Maxes Out After Permanent Injunction and Legislative Postponement (June 2026)
- Office of the Comptroller of the Currency, Order Preempting the Illinois Interchange Fee Prohibition Act (2026)
- PwC, Federal court upholds Illinois interchange fee ban on state and local tax and gratuities (February 2026)
- Cooley, District Court Vacates Regulation II’s Debit Card Interchange Fee Standard (August 2025)
- Venable LLP, State Fee Regulation Trends: Surcharging, Junk Fees, UDAP, and Interchange Fees (June 2026)
- Payments Dive, Le tribunal approuve le règlement Visa-Mastercard (juin 2026)
Disclaimer: This article is for general educational purposes only and is not legal, financial or compliance advice. Surcharge, pricing and interchange laws change often and vary by state, industry and type of entity, and several are subject to pending litigation. Card network rules may also change if the Visa and Mastercard settlement is finalized. Confirm current law with an attorney and your payment processor before starting, changing or ending a surcharge or fee program.
Dernière mise à jour : Octobre 2026
