U.S. merchants that intend to surcharge are required to:
- Provide written notice to Fidelity Bank Merchant Services with your intent to surcharge at least 30 days in advance of beginning to surcharge.
- Limit surcharging to credit cards only (no surcharging debit and prepaid cards) and limit the amount to your merchant discount rate for the applicable credit card surcharged. Allowed discount rate can be no more than 3% and should not exceed the merchants set discount rate.
- Disclose the surcharge as a merchant fee and clearly alert consumers to the practice at the point of sale – both in store and online – and on every receipt.
Merchants should also consider whether they comply with all applicable state and/or federal laws. Currently, several states have laws that prohibit surcharging. As of April 15, 2023, they are: Connecticut, Maine, Massachusetts, and Oklahoma. Note also that Merchants located in Colorado may not surcharge more than 2% as per State law.
To learn more about payment card surcharge, please call 1-855-547-1385 and select option 5.
