Compliance guide for enabling payment technology fees
When enabling payment technology fees , businesses must follow federal regulations, state laws, and card network rules to avoid penalties and legal issues. This guide provides essential compliance information based on current regulations and industry best practices.
Disclaimer
This is not legal advice. Consult qualified counsel for your jurisdiction.General guidelines
Surcharges are never allowed on debit and prepaid cards.
Maximum payment technology fee limits
- Visa: 3% maximum cap
- Mastercard: 4% maximum cap
- Recommended standard: 3% maximum
Prohibited jurisdictions
Credit card surcharges are illegal in:
- Connecticut
- Massachusetts
- Puerto Rico
- Maine
- New York (as of February 2024)
Network rules (US)
- Mastercard: Pre-registration required. Submit the form 30 days before go-live.
- Visa: No pre-registration required. Follow Visa surcharging guidelines .
- Others (AmEx, Discover): Review their terms if you accept them.
How to implement
Legal and policy
Confirm state/country rules allow surcharging.
Registration
- File Mastercard registration 30 days in advance.
- Review Visa and other network rules.
Client communication
- Give advance notice (approximately 30 days) if changing pricing.
- Provide fee-free alternatives (ACH, check, etc.).
Example
$1,000 invoice with 3% surcharge → client pays $1,030.
If your underlying card fee is 2.95% + $0.30 = $29.80, the surcharge covers it. Don’t charge more than your actual cost.
References
Last updated: February 2026 (reviewed regularly).
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