Credit card surcharges are legal in most states but capped by network rules

Customers may face a credit card surcharge on their final bill, but the legality of these fees depends on the state and the network rules of the the card brand. In most states, businesses use surcharges to offset processing fees that typically range from 1.5% to 3.5% per transaction.

Visa limits these surcharges to 3% and Mastercard limits them to 4%. A business cannot charge a surcharge that exceeds its actual processing cost, meaning it cannot profit from the fee. Surcharges are prohibited on debit cards and prepaid cards, even if the customer processes the payment as credit.

Connecticut, Massachusetts, and Maine prohibit credit card surcharges. Customers who encounter illegal surcharges may request a refund from the merchant or dispute the charge with their card issuer. Violations can also be reported to the state attorney general or the card networks, including Visa and Mastercard.