Can I charge a credit card convenience fee or surcharge on invoices?
Can you charge a credit card convenience fee on an invoice?
Short answer
Credit card surcharges are legal in most US states but prohibited in a handful (including Connecticut and Massachusetts as of 2025). Where legal, surcharges must be disclosed before the transaction, capped at your actual processing cost (typically 3% to 4%), and cannot be applied to debit cards. Always check current state law, as this area changes — this is not legal advice.
For most US service businesses, a credit card surcharge or convenience fee is legal if you follow the disclosure and cap rules. The surcharge has to be disclosed before the client pays, not as a surprise at checkout or on a final invoice once the amount is agreed. It applies only to credit cards (not debit), and it cannot exceed your actual processing cost, which is usually 3% to 4% of the transaction.
A handful of states prohibit credit card surcharges outright. The list shifts as state laws change. Connecticut and Massachusetts have historically banned them. Before adding a surcharge, verify the current rule in your state and in your client's state. Not legal advice; check with an attorney or your state's consumer protection agency for current law.
Visa and Mastercard also have their own surcharge rules, including registration requirements. Check your processor's terms too. Stripe, Square, and others sometimes restrict or prohibit surcharges, and breaking the card network rules can cost you the ability to accept those cards entirely.
Most service businesses end up taking a different angle: offer a cash or ACH discount instead of a credit card surcharge. Legally and psychologically these are different. You're offering a discount for cheaper payment methods rather than charging extra for cards. The economics are similar, customers respond better to a discount than a fee, and the legal framework is simpler. A typical ACH discount runs 2% to 3% off the invoice for payment within 10 days via bank transfer.