Passing Credit Card Fees to Customers – 2025 Snapshot

Note: This article describes the state of passing credit card fees to customers in 2025. For the most up‑to‑date 2026 rules, models, and best practices, see Passing Card Fees to Customers in 2026: Surcharging, Dual Pricing & Convenience Fees.

Card processing costs continued to climb in 2025, and many U.S. businesses started asking a hard question: “Can we legally pass some of these credit card fees to our customers instead of absorbing them?” This 2025 snapshot walks through what was possible at that time, which models businesses used, and which rules they had to follow to stay compliant.

What did “passing credit card fees to customers” mean in 2025?

In 2025, “passing fees” meant shifting some or all of your credit card acceptance costs from your business to the customer using one of several models. Instead of eating 2–4% in processing fees on every card transaction, merchants could:

• Add a surcharge on eligible credit card payments.
• Use dual pricing (a higher card price and a lower cash price).
• Charge a convenience fee or service fee in specific situations.

Each model came with different legal requirements, card‑brand rules, and customer expectations. IntelliPay’s payment models overview provides a current summary of how these programs work today.

Was it legal to pass credit card fees to customers in 2025?

Yes, in most states it was legal for merchants to pass credit card fees to customers in 2025, but only when they followed both card‑brand rules and state laws. Some states still restricted or tightly regulated surcharging, and laws around “all‑in pricing” and drip fees were evolving.

For a current legal overview and timeline of changes, see Is it Legal to Pass Credit Card Fees to Customers? (2026), as well as neutral references like the National Conference of State Legislatures (NCSL) summary of card surcharge statutes.

Option 1 in 2025: Credit card surcharging

In 2025, credit card surcharging was the most well‑known way to pass fees directly to card‑using customers. A surcharge is a separate fee added on top of the sale amount when the customer chooses to pay with a credit card instead of cash or another non‑card method.

At a high level in 2025:

• Surcharges could only be applied to eligible credit card transactions, not debit or prepaid cards.
• Card brands capped surcharge amounts and required clear disclosure at the checkout and on receipts.
• Some states restricted or prohibited surcharging, while others allowed it under specific conditions.

IntelliPay’s 2025 resources, including the Surcharging FAQs (October 2025 PDF) and state‑by‑state surcharging guide (October 2025 PDF), broke down which states allowed surcharging and under what rules.

Today, updated guidance on surcharging, including state‑by‑state insights and 2026 changes, is reflected in IntelliPay’s Surcharging FAQs: Credit Card Fees & Compliance and the 2026 passing‑fees guide mentioned at the top of this article.

Option 2 in 2025: Dual pricing and cash discounts

Dual pricing and true cash discount programs were already gaining momentum in 2025 as a way to offer customers a choice while covering processing costs. Instead of adding a separate fee, merchants displayed two prices:

• A higher price for card payments (which built in the expected processing costs).
• A lower “cash” or discount price for customers using cash or another lower‑cost method.

When structured properly, dual pricing was generally allowed in all 50 states. Customers were already familiar with “cash price vs credit price” from fuel, retail, and service environments. IntelliPay’s later articles, such as The Complete Guide to Dual Pricing and Surcharging vs Dual Pricing – What Business Owners Need to Know, provide a deeper explanation of how these programs evolved and why many merchants prefer them today.

Option 3 in 2025: Convenience and service fees

Convenience fees and service fees were another way businesses and public‑sector organizations passed card costs to customers in certain 2025 scenarios.

Typical 2025 examples included:

• A court, school, or city office that normally took payments in person charging a convenience or service fee for online credit card payments.
• A utility or government agency adding a separate fee for phone or web payments while keeping in‑person or check payments fee‑free.

These programs followed narrow card‑brand rules and often applied mainly to government, education, and similar entities. IntelliPay’s Service Fee vs Convenience Fee article describes how these structures work