--- title: "Surcharging Overview" canonical: "https://help.spoton.com/space/SK/4126277723/Surcharging%20Overview" format: markdown --- Learn more about SpotOn’s surcharging program, card brand compliance requirements, and more. **Contents** > Macro (toc) --- > ⚠️ *The information provided in this article not intended as a replacement for legal, accounting, tax, or other professional advice. You are responsible for complying with local laws and regulations, up to and including card network rules. Consult a professional advisor for advice specific to your business’s circumstances. SpotOn product offerings and laws governing surcharge are subject to change.* # **Credit Card Surcharge** Credit card surcharge is a process in which a business charges a fee to customers paying by credit card. Merchants can use these fees to offset their card processing fees as a convenience for accepting that form of payment. Per card network rules, debit card or prepaid card cannot be surcharged.    ## **Credit Card Surcharging with SpotOn** The benefits of credit card surcharge with SpotOn include: - **Savings on credit card processing fees** - Control costs by sharing fees with customers choosing the convenience of paying by credit card. - **Automatic fee handling** - No more manually adding fees to transactions. SpotOn’s solutions can automatically distinguish between credit and debit/prepaid cards, ensuring compliance by only applying surcharge to eligible credit card transactions. - **Keep your customers informed** - Provide your guests with the information and options they need when choosing how they pay. Signage, on-device prompts, and fee line item on receipts make sure that your customers are informed of their options. SpotOn Credit Card Surcharging is available to all merchants in eligible U.S. states. Exceptions include: - Merchants in states where surcharging is prohibited - including Connecticut, Maine and Massachusetts. - Merchants that have a direct card acceptance agreement with American Express Merchants that meet the requirements should verify that their usage of surcharge complies with card network requirements, as well as local laws. --- # **Card Brand Rules and Requirements** Card network rules and requirements need to be followed to maintain compliance and avoid potential penalties (such as fines). The information below is provided for your reference - additional requirements may apply.   ### Surcharge fees cannot be charged to debit or prepaid card transactions Surcharges are only to be applied to credit cards — **charging a debit or prepaid card is not compliant.** This includes debit or prepaid card transactions processed as credit (bypassing PIN). > ℹ️ SpotOn’s Credit Card Surcharge automatically applies the surcharge to credit card transactions, but not debit or prepaid transactions. ### Surcharges have a maximum limit Surcharge percentages applied to transactions are limited to the lesser of either the merchant’s current discount rate (as specified by card network rules), or 3% of the transaction total. Charging over the 3% limit for processing fees is in direct violation of card network guidelines and could subject a merchant to fines.   ### Visibility of fees in-store and on receipt Per card brand rules, signage must be posted at the entrance of the business (front door, waiting area, etc.) as well as where customers make their purchase (front counter, point of sale). Signage must clearly indicate the percentage customers will be charged, as well as that the fee only applies to transactions paid using credit cards. Customers must be given the option to decline the transaction (with fee) or provided alternative payment method before the transaction has been completed. Customer receipts must have a separate line item (such as *Credit Card Surcharge %*) that informs the customer that a specific fee percentage (and resulting dollar amount) was added to the transaction for the express purpose of covering the merchant’s processing fee. For example, a 3% card surcharge on the receipt of a customer’s $100 sale may have a line that reads “*Credit Card Surcharge (3%): $3.00”*. Local law may have additional disclosure requirements for merchants to apply surcharge fees. > ℹ️ *SpotOn provides signage that meets card brand requirements for customer notification. It is a merchant’s responsibility to ensure that they are posted appropriately and accessible for customers. SpotOn’s various payment solutions automatically calculate and provide notice on guest-facing displays that ensure all requirements are met per compliance rules.* ### Surcharges must apply to all card brands equally If a merchant is participating in a credit card surcharge program, they must apply the same fee to all credit cards of every network with the same terms. These include: - Visa - Mastercard - Discover - American Express ### Registering your surcharge program with card networks Mastercard requires that merchants that intend to implement a credit card surcharge program notify Mastercard 30 days (at minimum) before they begin assessing fees to their customers. More information on Mastercard’s specific surcharge rules can be found at the link [here](https://www.mastercard.us/en-us/business/overview/support/merchant-surcharge-rules.html). Visa requires that a merchant notifies its acquirer 30 days in advance of beginning to surcharge.  --- # **Legal Considerations** Merchants must follow federal and state laws for surcharging, as well as laws prohibiting deceptive or misleading disclosures. Law changes over time and can vary by state. As of May 2025, the following states have laws that prohibit surcharging: - Connecticut - Maine - Massachusetts - Merchants located in Colorado and Oklahoma may be subject to limitations on the rate at which they surcharge credit cards There may be additional local laws or legal requirements that apply to your business, such as posting fees in restaurant menus. Merchants are responsible for complying with any such changes in law. Usage of credit card surcharge fees requires strict compliance. **Failure to maintain compliant credit card surcharge practices can and will result in significant fines and/or penalties for violating card network rules.** Applying charges to any card outside of the automated surcharge application intended to cover credit card processing fees will result in non-compliant transactions. The use of other SpotOn products and features to assess an additional surcharge carries a risk of fines with initial violations starting at $1,000, which can escalate for repeated violations. The major card brands (Mastercard, Discover, American Express) actively enforce non-compliance to protect their customers. As such, SpotOn may disable any service charges or other use of our products and services that leads to noncompliant surcharging (or other noncompliance) at any time.   --- # **Frequently Asked Questions (FAQ)** ### **How does a surcharge work?** A line item fee is added to a transaction when a credit card is inserted into the device. ### **How much can I surcharge?** The maximum is 3% with the exception of Colorado and Oklahoma at 2%. SpotOn does not offer a flat dollar amount for surcharging. ### **Am I eligible?** Merchants in [prohibited states](https://spotonteam.atlassian.net/wiki/spaces/SK/pages/4126277723/Surcharging+Overview#Legal-Considerations) are not eligible to use a surcharge. Merchants who have received a past surcharge violation are subject to additional review before beginning the program. *Click **[here ](https://help.spoton.com/space/SK/4163469387/Getting+Started+with+Surcharging+at+SpotOn)**to Get Started with Surcharging at SpotOn.* ### **Which cards can be surcharged?** Credit cards processed by chip or contactless (tapped or inserted into the device). Some products may also apply a surcharge to swiped transactions. ### **Which cards can NOT be surcharged?** Any kind of debit or prepaid card, including gift cards. ### **Does the surcharge apply to Manual Entry sales?** No, the surcharge cannot apply to manual entry sales at this time. This feature is coming soon. ### **Does the surcharge apply to Online Ordering sales?** No, the surcharge cannot apply to online ordering sales at this time. This feature is coming soon. ### **Can I surcharge on my device and pair it with another program?** No, if a business is surcharging, that is the only program that the business can use. If you would like to use dual pricing, you will have to discontinue surcharging. --- # **Additional Resources** - [Visa Merchant Surcharging Information](http://www.visa.com/merchantsurcharging) - [Visa Surcharge Considerations](https://usa.visa.com/content/dam/VCOM/global/support-legal/documents/merchant-surcharging-considerations-and-requirements.pdf) - [Visa Surcharge Q&A](https://usa.visa.com/content/dam/VCOM/global/support-legal/documents/merchant-surcharging-qa-for-web.pdf) - [Mastercard Credit Card Surcharge Rules](https://www.mastercard.us/en-us/business/overview/support/merchant-surcharge-rules.html) -