Payment Radar
Credit card surcharge rules 2026: network caps and state laws
As of September 2026, credit card surcharging rules are governed by Visa, Mastercard, and state laws.
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What changed
As of September 2026, the rules governing credit card surcharges in the United States have shifted significantly. Visa now caps surcharges at the lower of the merchant’s actual acceptance cost or 3%. Mastercard caps them at the merchant’s average discount rate for Mastercard credit, calculated over the preceding one or twelve months at the merchant’s option, with an absolute ceiling of 4%. On the state level, Oklahoma replaced its previous ban with a 2% cap effective November 1, 2025. Meanwhile, Connecticut, Maine, and Massachusetts still prohibit surcharges entirely. The source notes that three states have bans on the books that courts have struck down, but does not identify those states in the provided text. Merchants must notify their acquirer 30 days in advance before implementing any surcharge program. Processing fees still apply to the gross amount, including the surcharge, meaning the arithmetic must be carefully calculated to ensure the surcharge actually reduces costs rather than increasing them due to cascading fees.
Why a business should care
Surcharging can reduce processing costs, but merchants must navigate complex network rules and state laws. Understanding how network caps interact with state laws is critical to avoiding non-compliance. Non-compliance with network rules or state laws can result in fines, penalties, or the inability to surcharge. Merchants must also account for processing fees on the gross amount, which can erode the intended savings if not calculated correctly.
Who it affects
This change directly affects merchants in the United States who accept credit cards and wish to implement a surcharge program. Retailers, small businesses, and payment processors must adjust their systems and policies to comply with the new caps and state-specific restrictions.
What to consider doing
Notify your acquirer at least 30 days before starting a surcharge program. Check your processor’s implementation details, as they vary. Ensure compliance with state laws, particularly in Connecticut, Maine, and Massachusetts, where surcharges are prohibited.
Uncertainty and risks
The regulatory landscape remains fluid. Courts have struck down bans in several states, but new legislation or legal challenges could alter the rules again. Merchants must stay informed about changes in their specific jurisdiction. Additionally, the interaction between network caps and state laws can create compliance complexities that require careful monitoring. Non-compliance risks include fines, penalties, or the inability to surcharge. Merchants must also account for processing fees on the gross amount, which can impact the net savings of a surcharge program.
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