Is it Legal to Charge a Credit Card Fee in the US ?
Yes, it is Legal to Charge a Credit Card Fee in most US states.
It is legal for businesses to charge a credit card surcharge to customers who pay with credit. However, some important restrictions and regulations must be followed.
Legal Support
- Surcharging became permissible following a 2013 class-action lawsuit settlement.
- State laws often dictate the specifics of surcharging practices.
- Visa and Mastercard have their own rules governing credit card surcharges.
Important Restrictions
- Maximum Surcharge: Fees are typically capped at a percentage of the transaction, often a maximum of 4%.
- Clear Disclosure: Businesses must notify customers about the surcharge both at the point of sale and on receipts.
- No Discrimination: If a business decides to surcharge, they must apply it across all credit card brands (not just Visa, for example).
Some states still have laws prohibiting credit card surcharges, although these laws may be unenforceable due to recent court rulings. It’s always best to check your specific state’s regulations for the most accurate information.
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