Credit Card Surcharge Laws by State: A Guide for AEC Pros
The practice of implementing a surcharge to recoup the costs of credit card processing fees was illegal in many states for several decades. However, thanks to a class action lawsuit in 2013, a large number of states began permitting the practice, with more and more states following suit over the course of the decade. As of the time of writing, surcharging is legal in all but four states (Connecticut, Maine, Massachusetts, and New York*) and Puerto Rico.
Note: Surcharges are governed by state law and card brand rules (like those published by Visa and Mastercard), each of which are subject to change. Attorneys are also subject to ethics rules and should check with their local bar association for the most updated information applicable to them. The following list, updated as of December 2023, provides AEC professionals with updated information on the legal status of credit card surcharges specifically based on state law.
Alabama:
- Surcharge Prohibited: No
- Resources: Alabama Attorney General
Alaska:
- Surcharge Prohibited: No
- Resources: State of Alaska Department of Law
Arizona:
- Surcharge Prohibited: No
- Resources: Arizona Attorney General
Arkansas:
- Surcharge Prohibited: No
- Resources: Arkansas Attorney General
California:
- Surcharge Prohibited: No
- Resources: California Attorney General
Colorado:
- Surcharge Prohibited: No
- Resources: Colorado Attorney General
Connecticut:
- Surcharge Prohibited: Yes
- Resources: Connecticut Attorney General
Delaware:
- Surcharge Prohibited: No
- Resources: Delaware Attorney General
Florida:
- Surcharge Prohibited: No
- Resources: Florida Attorney General
Georgia:
- Surcharge Prohibited: No
- Resources: Georgia Attorney General
Hawaii:
- Surcharge Prohibited: No
- Resources: Hawaii Attorney General
Idaho:
- Surcharge Prohibited: No
- Resources: Idaho Attorney General
Illinois:
- Surcharge Prohibited: No
- Resources: Illinois Attorney General
Indiana:
- Surcharge Prohibited: No
- Resources: Indiana Attorney General
Iowa:
- Surcharge Prohibited: No
- Resources: Iowa Attorney General
Kansas:
- Surcharge Prohibited: No
- Resources: Kansas Attorney General
Kentucky:
- Surcharge Prohibited: No
- Resources: Kentucky Attorney General
Louisiana:
- Surcharge Prohibited: No
- Resources: Louisiana Attorney General
Maine:
- Surcharge Prohibited: Yes
- Resources: Maine Attorney General
Maryland:
- Surcharge Prohibited: No
- Resources: Maryland Attorney General
Massachusetts:
- Surcharge Prohibited: Yes
- Resources: Massachusetts Attorney General
Michigan:
- Surcharge Prohibited: No
- Resources: Michigan Attorney General
Minnesota:
- Surcharge Prohibited: No
- Resources: Minnesota Attorney General
Mississippi:
- Surcharge Prohibited: No
- Resources: Mississippi Attorney General
Missouri:
- Surcharge Prohibited: No
- Resources: Missouri Attorney General
Montana:
- Surcharge Prohibited: No
- Resources: Montana Attorney General
Nebraska:
- Surcharge Prohibited: No
- Resources: Nebraska Attorney General
Nevada:
- Surcharge Prohibited: No
- Resources: Nevada Attorney General
New Hampshire:
- Surcharge Prohibited: No
- Resources: New Hampshire Attorney General
New Jersey:
- Surcharge Prohibited: No
- Resources: New Jersey Attorney General
New Mexico:
- Surcharge Prohibited: No
- Resources: New Mexico Attorney General
New York:
- Surcharge Prohibited: Yes, as currently interpreted*
- Resources: New York Department of State
North Carolina:
- Surcharge Prohibited: No
- Resources: North Carolina Attorney General
North Dakota:
- Surcharge Prohibited: No
- Resources: North Dakota Attorney General
Ohio:
- Surcharge Prohibited: No
- Resources: Ohio Attorney General
Oklahoma:
- Surcharge Prohibited: No
- Resources: Oklahoma Attorney General
Oregon:
- Surcharge Prohibited: No
- Resources: Oregon Attorney General
Pennsylvania:
- Surcharge Prohibited: No
- Resources: Pennsylvania Attorney General
Rhode Island:
- Surcharge Prohibited: No
- Resources: Rhode Island Attorney General
South Carolina:
- Surcharge Prohibited: No
- Resources: South Carolina Attorney General
South Dakota:
- Surcharge Prohibited: No
- Resources: South Dakota Attorney General
Tennessee:
- Surcharge Prohibited: No
- Resources: Tennessee Attorney General
Texas:
- Surcharge Prohibited: No
- Resources: Texas Attorney General
Utah:
- Surcharge Prohibited: No
- Resources: Utah Attorney General
Vermont:
- Surcharge Prohibited: No
- Resources: Vermont Attorney General
Virginia:
- Surcharge Prohibited: No
- Resources: Virginia Attorney General
Washington:
- Surcharge Prohibited: No
- Resources: Washington Attorney General
West Virginia:
- Surcharge Prohibited: No
- Resources: West Virginia Attorney General
Wisconsin:
- Surcharge Prohibited: No
- Resources: Wisconsin Attorney General
Wyoming:
- Surcharge Prohibited: No
- Resources: Wyoming Attorney General
Depending on your location, being able to implement a surcharge can make offering the option to pay by credit card much easier to stomach. You can offer your clients the payment options they prefer to use, while minimizing the costs associated with them on your end. It’s a win-win for both of you!
See for yourself how ClientPay can streamline your billing process. Schedule a demo today!