2026 NEW

A surcharge lets you pass a portion of the card-brand fees you pay onto customers who choose to pay by credit card. Applied incorrectly, it can result in fines — applied correctly, it can legally and significantly lower your card processing costs.

A surcharge is a fee added to a credit card transaction to offset the processing fees charged by the card networks. Its purpose is to keep pricing fair between cash-paying and card-paying customers, and to reduce the card fee burden carried by the business owner.

Structure: Transaction amount × surcharge rate (2.5% – 3.0%)
Applies only to credit card transactions — not to cash, check, or debit card transactions
When applied: notified at the payment approval stage, then added

Note: A surcharge is an added cost paid by the customer on top of the purchase amount.

California law: menu and price displays must show the cash price, and the surcharge must be clearly disclosed on the receipt and at the point of sale
Visa: surcharge capped at a maximum of 3%
Mastercard: requires at least one month's advance notice before applying a surcharge
American Express: generally prohibits surcharging

Bottom line: surcharge cannot exceed 3%.

** Watch out for false or exaggerated advertising! Violations can result in fines of $1,000–$5,000 per occurrence.

Example 1) "$0 card fee with surcharge"? — False! Debit and Amex cards cannot be surcharged, so the true savings is up to 73%, not a full $0.
Example 2) Charging customers more than 3%? — Subject to fines! Under California law and card brand rules, the surcharge rate is capped at 3%.

Legal surcharge rate capped at a maximum of 3%
Clear disclosure on receipts and at the point of sale
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CALL 877-252-0379 / EMAIL: aa@aams24.com