Illegal Credit Card Fees on Non-Credit Transactions

Consumers across the nation are beginning to report instances of businesses unlawfully charging credit card surcharge fees on non-credit card transactions. These include those paid with cash, debit card, (including pre-paid debit cards and signature-based debit card transactions), or check. When paying with cash, debit cards, or checks, businesses are prohibited from charging credit card surcharge fees. Point-of-sale software settings are no excuse for businesses charging consumers these improper fees. However, according to consumer complaints, credit card surcharge fees on non-credit card transactions are still occurring.  

Unlawful Credit Card Surcharge Fees 

When paying with cash, debit, or check, businesses are prohibited from charging credit card surcharge fees, yet they continue to do so. Some businesses have allegedly blamed their point-of-sale (“POS”) software systems for “automatically” charging credit card-related fees on other types of transactions. However, POS software settings are no excuse for a business to pad its bottom line by assessing illegal fees. In fact, most POS systems are customizable allowing the business or its POS service provider to remove or add fees, or to adjust taxes on each purchase. According to consumer complaints, these instances of unlawful credit card surcharge fees are occurring despite their illegality.  

Frequently Asked Questions: 

What is a credit card surcharge fee? 

• A credit card surcharge fee is an additional charge that a business may impose on a customer when paying with a credit card. This fee is typically a percentage of the total transaction amount and is intended to cover the cost of processing the credit card payment. 

Are credit card surcharge fees prohibited? 

• No, not in most states. Only two states and one U.S. territory prohibit businesses from including a surcharge on a credit card payment: Connecticut, Massachusetts, and Puerto Rico. In eight other states, anti-surcharging laws remain on the books but are unenforceable, or are limited, due to recent court decisions. These states include California, Florida, Kansas, Main, New York, Oklahoma, Texas, and Utah. But in every state, it is illegal to charge credit card surcharge fees on non-credit card transactions. 

What kind of businesses charge credit card surcharge fees? 

• Any consumer business may charge a credit card surcharge fee on a credit-card transaction unless that business is in Connecticut, Massachusetts, or Puerto Rico. In the other forty-eight states, any business can charge a credit-card surcharge fee on a credit card transaction. Whether it is a fast-food restaurant or a plumbing service, business owners decide which additional fees to charge on transactions. But no business may charge a credit card surcharge fee on a non-credit card transaction. Check your receipt for all transactions to ensure the business you frequent is not improperly overcharging you. 

If you Have Been Charged a Credit Card Surcharge Fee, Here is What to Do  

If you have been victimized by these unlawful credit card surcharge fees on non-credit card transactions, contact our Financial Services team today for a free consultation. We will review the details of your situation and determine if filing a case might be the next step. Here is what to expect in the process:  

1. Fill out our contact form with your information.  
2. Your information will be reviewed, and you will be contacted if you have a potential case.  
3. A member of our Financial Services team will contact you if your claim has merit as a potential class action.  
4. Discuss your potential case with a member of our Financial Services team.  
5. Discuss your next steps.