Get OCCC Bulletin On Credit Card Surcharge Alternatives 6-25-15docx

To date, only two states and one jurisdiction still outlaw the use of credit card surcharges. They are a result of non-qualified transactions of different communications methods.: Connecticut, Massachusetts, and Puerto Rico.

U.S. merchants cannot surcharge debit card or prepaid card purchases.

What is a surcharge? In the context of credit cards, surcharging is defined as adding up to 3 percent on credit card transactions to recoup payment processing costs. The practice became permissible to merchants in 2013 in the wake of a class action lawsuit against Visa and MasterCard.

A credit card surcharge is a fee that merchants can apply to your credit card transactions on top of the advertised retail price. This surcharge helps them cover the cost of accepting credit cards as a payment method. Some businesses also add a surcharge for debit cards and other types of payments that cost them money.

If you're wondering if it is legal to charge credit card fees, the short answer is yes. The practice of surcharging was outlawed for several decades until 2013 when a class action lawsuit permitted merchants in several U.S. states to implement surcharges in their businesses.

If you're wondering if it is legal to charge credit card fees, the short answer is yes. The practice of surcharging was outlawed for several decades until 2013 when a class action lawsuit permitted merchants in several U.S. states to implement surcharges in their businesses.

Can a surcharge be imposed on debit or prepaid cards? No. The surcharge may only be imposed upon credit cards, and not debit or prepaid cards. The amount of the surcharge may not exceed the amount of the swipe fee paid by the merchant on the particular credit card.

A credit card surcharge is a fee that merchants can charge to cover their credit card payment processing costs. Surcharges are a percentage of the purchase amount and are generally added to your total bill.