Currently, retailers pay credit card companies a percentage of their transactions to accept and process credit card payments. A recent court settlement between the credit card industry and retailers now allows retailers the option to pass payment processing costs to consumers who pay with a credit card. This ruling went into effect January 27, 2013.


Not all states are affected. Due to state laws, merchants are not allowed to impose a credit card surcharge in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma or Texas.




Here are more surcharge details:


The fee may be imposed on credit card transactions only.  Debit transactions are not involved in the agreement.

The fee cannot be more than the merchant actually pays to accept credit cards.  That amount ranges between 1.5% and 4% of the transaction amount.

The fee must be clearly disclosed at the store entrance and where the payment is being accepted.  When using an online retailer, the surcharge must be posted on the website’s homepage.

The notice must include: the amount of the fee; that the fee is being charged by the merchant; and, that the fee does not exceed the merchant’s cost to accept credit cards.

The fee amount must appear on your receipt and may be referred to as either a surcharge or checkout fee.



For more information, please call a member service representative at (888) 858-6878.


by Jenna, Vice President, Operations