Compliance & Legal Guide

Complete compliance information for cash discount and surcharging programs

Compliance Requirements Overview

Both cash discount programs and credit card surcharging have specific legal and regulatory requirements that must be followed to remain compliant with card brand rules and state laws.

  • Card brand registration and notification requirements
  • State-specific regulations and restrictions
  • Required customer disclosure procedures
  • Proper signage and notification requirements
  • Transaction processing and receipt requirements
  • Ongoing compliance monitoring and updates
Legal Compliance

State-by-State Surcharging Laws

Current as of January 2025 - Laws subject to change

Allowed Alabama
Surcharging Allowed
Allowed Alaska
Surcharging Allowed
✅ Arizona
Surcharging Allowed
✅ Arkansas
Surcharging Allowed
✅ California
Surcharging Allowed
⚠️ Colorado
Limited/Exceptions
❌ Connecticut
Surcharging Prohibited
✅ Delaware
Surcharging Allowed
✅ Florida
Surcharging Allowed
✅ Georgia
Surcharging Allowed
✅ Hawaii
Surcharging Allowed
✅ Idaho
Surcharging Allowed
✅ Illinois
Surcharging Allowed
✅ Indiana
Surcharging Allowed
✅ Iowa
Surcharging Allowed
✅ Kansas
Surcharging Allowed
✅ Kentucky
Surcharging Allowed
✅ Louisiana
Surcharging Allowed
✅ Maine
Surcharging Allowed
✅ Maryland
Surcharging Allowed
❌ Massachusetts
Surcharging Prohibited
✅ Michigan
Surcharging Allowed
✅ Minnesota
Surcharging Allowed
✅ Mississippi
Surcharging Allowed
✅ Missouri
Surcharging Allowed
✅ Montana
Surcharging Allowed
✅ Nebraska
Surcharging Allowed
✅ Nevada
Surcharging Allowed
✅ New Hampshire
Surcharging Allowed
✅ New Jersey
Surcharging Allowed
✅ New Mexico
Surcharging Allowed
✅ New York
Surcharging Allowed
✅ North Carolina
Surcharging Allowed
✅ North Dakota
Surcharging Allowed
✅ Ohio
Surcharging Allowed
✅ Oklahoma
Surcharging Allowed
✅ Oregon
Surcharging Allowed
✅ Pennsylvania
Surcharging Allowed
❌ Puerto Rico
Surcharging Prohibited
✅ Rhode Island
Surcharging Allowed
✅ South Carolina
Surcharging Allowed
✅ South Dakota
Surcharging Allowed
✅ Tennessee
Surcharging Allowed
✅ Texas
Surcharging Allowed
✅ Utah
Surcharging Allowed
✅ Vermont
Surcharging Allowed
✅ Virginia
Surcharging Allowed
✅ Washington
Surcharging Allowed
✅ West Virginia
Surcharging Allowed
✅ Wisconsin
Surcharging Allowed
✅ Wyoming
Surcharging Allowed

Important: Cash discount programs are legal in ALL 50 states, even where surcharging is prohibited.

Card Brand Compliance Requirements

Visa Requirements

Visa Requirements

  • ✓ 30-day advance notification
  • ✓ Maximum 4% or actual cost
  • ✓ Clear disclosure before payment
  • ✓ Separate line item on receipt
Mastercard Requirements

Mastercard Requirements

  • ✓ Registration with Mastercard
  • ✓ Posted signage requirements
  • ✓ Cannot exceed processing cost
  • ✓ No surcharge on debit cards
Discover/Amex Requirements

Discover/Amex Requirements

  • ✓ Follow Visa/MC guidelines
  • ✓ Consistent application across cards
  • ✓ Proper disclosure procedures
  • ✓ Regular compliance reporting

Required Signage Examples

Cash Discount Program Signage

CASH DISCOUNT PROGRAM

All prices reflect a cash discount.
A service fee will be added to credit card transactions.

We gladly accept cash, checks, and credit cards

Credit Card Surcharge Signage

NOTICE

We impose a surcharge on credit cards
that is not greater than our cost of acceptance.

We do not surcharge debit cards

Implementation Compliance Checklist

Before You Start

  • Review state regulations for compliance
  • Choose between cash discount or surcharging
  • Notify card brands (surcharging only)
  • Prepare required signage materials
  • Train staff on procedures

During Implementation

  • Install compliant signage at entry points
  • Configure POS system properly
  • Test transaction processing
  • Verify receipt formatting
  • Document compliance procedures

Recent Legal Updates

January 2025

Updated Visa surcharge notification requirements now allow electronic notification in addition to written notice.

December 2024

Mastercard clarified surcharge calculation methods for blended rate merchants.

October 2024

Colorado expanded surcharge exceptions for certain business types.

Compliance Support Services

📋

Compliance Audit

Complete review of your current setup and identification of any compliance gaps.

📄

Documentation Package

All required forms, signage templates, and compliance documentation.

🎓

Staff Training

Comprehensive training program for your team on compliance procedures.

🔄

Ongoing Monitoring

Regular compliance updates and monitoring to ensure continued adherence.

Need Compliance Assistance?

Our compliance specialists help ensure your program meets all legal and regulatory requirements.

Schedule Compliance Consultation