State law compliance
State surcharge laws, applied automatically
Card network rules are only half the picture. A handful of states ban credit card surcharges outright, others cap them below the network limit, and some dictate exactly how prices must be displayed. Integrater maps every payment to the rules that apply and adjusts the surcharge for you.
- States that prohibit surcharges
- 3
- Colorado surcharge cap
- 2%
- Updates as laws change
- Automatic
Surcharging is legal in most states, with conditions
Most U.S. states allow merchants to add a credit card surcharge as long as they follow card network rules. But a few states prohibit surcharges entirely, and others add their own caps and disclosure requirements on top of the networks' rules. Your obligations can depend on where your customer is, not just where your business is located.
Current state surcharge rules at a glance
The table below summarizes the states with the most significant restrictions as of November 2026. States not listed generally permit surcharging under card network rules, subject to any local requirements.
| State | Status | Key requirement |
|---|---|---|
| Connecticut | Prohibited | Surcharges banned; cash discounts permitted |
| Massachusetts | Prohibited | Surcharges banned; cash discounts permitted |
| Maine | Prohibited | Surcharges banned; cash discounts permitted |
| Colorado | Capped | Lesser of 2% or the actual merchant fee, with required notice |
| New York | Regulated | No more than actual processing cost; total card price shown in dollars and cents |
Prohibited states
In states that ban surcharging, adding a card fee to a customer's bill can expose you to consumer protection claims. Integrater sets the surcharge to zero for payments governed by those states, without you touching a setting, and your standard pricing applies.
Capped and disclosure-regulated states
Where a state caps surcharges below the network limit, Integrater applies the lower cap. Where a state requires total-price disclosure, as New York does, the payment page shows the full card price in dollars and cents before the customer pays, rather than only a percentage.
- The lowest applicable cap is applied: state, network, or your cost of acceptance
- Jurisdiction-specific disclosure text shown on the payment page
- Total card price displayed where state law requires it
- Every surcharge decision logged for your records
Laws change, and your setup keeps up
Surcharge legislation shifts every year as states revisit consumer fee and pricing laws. Integrater tracks these changes and updates the rule engine, so your configuration stays current without a manual review each time a law changes.
This page is a general summary, not legal advice. Talk to your attorney about your specific situation.
Frequently asked questions
Which states prohibit credit card surcharges?
As of November 2026, Connecticut, Massachusetts, and Maine prohibit credit card surcharges, though they permit businesses to offer cash discounts. Integrater sets the surcharge to zero for payments governed by these states automatically.
What is the surcharge limit in Colorado?
Colorado caps surcharges at 2% of the transaction or the merchant's actual processing fee, whichever is less, and requires specific disclosure notice.
What does New York require for surcharging?
New York allows surcharges that do not exceed the merchant's actual processing cost and requires the total price, including the surcharge, to be displayed in dollars and cents wherever prices appear.
Does the customer's location or my business location determine the rules?
It can depend on both. Integrater maps each payment to the jurisdiction rules that apply and uses the most restrictive applicable requirement.
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