Understanding Credit Card Surcharges in Centime

What is a Surcharge?

A credit card surcharge is an optional fee that merchants can pass on to customers who choose to pay with a credit card. It helps offset the cost of credit card processing fees.

⚠️ Note: Surcharges are allowed only on credit card transactions—not debit cards, prepaid cards, or cards with non-U.S. billing addresses.

How Centime Handles Surcharges

Managing surcharges means navigating complex card network rules, accounting requirements, and advance notifications. Centime simplifies this process:

• Calculates and displays surcharges during checkout.
• Itemizes surcharge amounts on receipts and email confirmations.
• Allows configuration at the customer level.
• Provides support via the customer success team.

Learn more in this article → Enable and Configure Online Collections Payments

Card Network & Legal Surcharge Rules

General Rules

• Notify card networks 30 days in advance before applying a surcharge (Centime will assist).
• Surcharge must not exceed the actual processing cost or:
  • 2.9% (Centime’s cap)
• Disclosure required:
  • At point of sale or payment screen (e-commerce)
  • On final receipt and email
• Surcharges not allowed on:
  • Debit cards (even if processed as credit)
  • Prepaid cards
  • Non-U.S. billing address cards

State-by-State Surcharge Regulations

✅ States That Permit Surcharging

Most U.S. states allow surcharging: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

• Colorado: Allowed, 2% cap by law (Centime does not auto-enforce)
• New Jersey: Capped at actual cost
• New York: Requires dollar-and-cent disclosure

🚫 States That Prohibit Surcharging

• Connecticut
• Massachusetts
• Puerto Rico

Centime disables surcharges for customers in these regions (override optional).

⚖️ States with Disputed Legality

• California, Kansas, Maine, Oklahoma, Texas

Merchants are responsible for understanding local compliance.

Summary: Requirements to Apply a Surcharge

Final Notes

Merchants must comply with all state laws, card network requirements, and consumer protection laws. While Centime provides tools and guidance, merchants are ultimately responsible for legal compliance.