A checkout fee, or payment card surcharge, is an unfair surprise fee that a retailer tacks onto a consumer's bill when he or she uses a credit or debit card. Visa rules do not allow retailers to charge cardholders a checkout fee for using their cards, mirroring laws in 10 U.S. states. Read on to learn more.
In 10 states it is prohibited by law for retailers to charge consumers a fee for using a credit card (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas). Consumers who are subjected to checkout fees in states where they are protected by law may report the retailer to their state attorney general's office.
Click a state below to read the laws on surcharging and find out where you can go if you suspect a violation.
State Laws & Attorney General Contact Information
California
CALIFORNIA POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No retailer...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means..."
Statute: Cal. Civ. Code § 1748.1(a) (West)
Discounts for Cash Payments are allowed in California
"A retailer may, however, offer discounts for the purpose of inducing payment by cash, check or other means not involving the use of a credit card, provided that the discount is offered to all prospective buyers."
Statute: Cal. Civ. Code § 1748.1(a) (West)
Statutes cover: Credit Cards only
Statute: (Cal. Civ. Code § 1747.02(a) (West) (defining "credit card"))
California State Attorney General – Consumer Complaints
(*external link implies no endorsement by state of California)
Colorado
COLORADO POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"[N]o seller...may impose a surcharge on a holder who elects to use a credit or charge card in lieu of payment by cash check or similar means..."
Statute: Colo. Rev. Stat. Ann. § 5-2-212(1) (West)
Discounts for Cash Payments are allowed in Colorado
"Discounts offered to induce payment by cash, check or other means not involving credit card are not finance charges if offered to all prospective buyers and disclosed clearly and conspicuously in accordance with regulations."
Statute: Colo. Rev. Stat. Ann. § 5-2-212(2) (West)
Statutes cover: Credit Cards only
Statute: (See Colo. Rev. Stat. Ann. §§ 5-1-301(16), (16.5), (24), (43) (West)).1
Colorado State Attorney General – Consumer Complaints
Connecticut
CONNECTICUT POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller may impose a surcharge on a buyer who elects to use any method of payment, including, but not limited to, cash, check, credit card or electronic means..."
Statute: Conn. Gen. Stat. Ann. § 42-133ff(a) (West)
Statute: Id. at § 42-133ff(d).
Statute covers: Credit & Debit
No surcharges on travel agents
"No provider of travel services may impose a surcharge on or reduce the commission paid to a travel agent who acts as an agent for such provider if the buyer uses a credit card to purchase such provider's travel services."
Statute: Conn. Gen. Stat. Ann. § 42-133ff(e) (West),br
Statute does not define credit card to include debit card
Connecticut State Attorney General – Consumer Complaints
Connecticut Department of Consumer Protection – Consumer Complaints
Florida
FLORIDA POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"A seller...may not impose a surcharge on the buyer...for electing to use a credit card in lieu of payment by cash, check, or similar means, if the seller...accepts payment by credit card..."
Statute: Fla. Stat. Ann. § 501.0117(1) (West)
Discounts for Cash Payments are allowed in Florida
Discounts offered to induce payment by cash, check or other means not involving a credit card allowed if offered to all prospective buyers.
Statute: Fla. Stat. Ann. § 501.0117(1) (West)
Statutes cover: Statute does not define credit card to include debit card
Statute: Fla. Stat. Ann. § 501.011(1) (West)
Florida State Attorney General - Consumer Complaints
Kansas
KANSAS POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller...or any credit card issuer may impose a surcharge on a card holder who elects to use a credit card in lieu of payment by cash, check or similar means."
Statute: Kan. Stat. Ann. § 16a-2-403
Discounts for Cash Payments are allowed in Kansas
Attorney General's opinion interprets section 16a-2-403's predecessor statute to not prohibit discounts for payments made by cash, check or similar means.
Statute: Kan. Op. Attorney Gen. 86-115, 1986 WL 238345 (1986)
Statutes cover: Statutes do not define credit card to include debit card
Statute: (See Kan. Stat. Ann. §§ 16a-1-301(18), (19))
Kansas State Attorney General - Consumer Complaints
Maine
MAINE POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."
Statute: Maine Rev. Stat. Ann. tit. 9-A, § 8-303(2) (See also id. § 8-103 (definitions and rules of construction))
Discounts for Cash Payments are allowed in Maine
Discount offered to induce payment by cash, check or other means not involving a credit card not considered a finance charge if offered to all prospective buyers and disclosed clearly and conspicuously.
Statute: See Maine Rev. Stat. Ann. tit. 9-A, § 8-303(3)
Statutes cover: Credit cards only
Statute: (See Maine Rev. Stat. Ann. tit. 9-A, §§ 1-301(15), (16)).1
Maine State Attorney General – Consumer Complaints
Massachusetts
MASSACHUSETTS POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."
Statute: Mass. Gen. Laws Ann. ch. 140D, § 28A(a)(2) (West)
Discounts for Cash Payments are allowed in Massachusetts
Discount offered to induce payment by cash, check or other means not involving a credit card not considered a finance charge if offered to all prospective buyers and disclosed clearly and conspicuously.
Statute: Mass. Gen. Laws Ann. ch. 140D, § 28A(b) (West)
Statutes cover: Credit cards only
Statute: (Mass. Gen. Laws Ann. ch. 140D, § 1 (West))
Massachusetts State Attorney General – Consumer Complaints
(*external link implies no endorsement by state of Massachusetts)
New York
NEW YORK POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means..."
Statute: N.Y. Gen. Bus. Law § 518 (McKinney)
Statute covers: Credit cards only
Statute: (N.Y. Gen. Bus. Law § 511(1))
New York State Attorney General – Consumer Complaints
Oklahoma
OKLAHOMA POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"No seller...may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means."
Statute: Okla. Stat. Ann. tit. 14A, §§ 2-211, -417 (West)
Discounts for Cash Payments are allowed in Oklahoma
Discount offered to induce payment by cash, check or similar means not involving an open-end credit card not considered a credit service charge if offered to all prospective buyers clearly and conspicuously in accordance with regulations.
Statutes cover: Credit cards only
Statute: (See Okla. Stat. Ann. tit. 14A, §§ 1-301(7), (9), (19)
Texas
TEXAS POSSESSES A "NO SURCHARGE RULE" FOR CONSUMER PURCHASES
"[A] seller may not impose a surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check or a similar means of payment."
Statute: Tex. Fin. Code Ann. § 339.001(a) (Vernon)
Statute covers: Credit cards only
Statute: Tex. Fin. Code Ann. §§ 301.002(a)(2),(9)
Texas State Attorney General – Consumer Complaints
