Surcharge sign wording: what to post when you add a card fee

Where does the sign have to hang? Visa answers that in its surcharge Q&A. You can read the whole thing here: Visa U.S. Merchant Surcharge Q and A.

1. At the entrance. Visa says the notice goes at "the point of entry". Sell online too? Visa applies the same three places to online sales (it names "both in-store and online transactions"). Ask your processor where the entry notice goes on your site.

2. At the register. Visa says the notice goes at "the point of sale or transaction".

3. On the receipt. Visa says you "disclose the surcharge as a separate charge on the consumer's transaction receipt". Visa's one-page summary adds that the final surcharge amount "must be identified separately on the transaction receipt".

New to this? Start with what a surcharge is, Washington's surcharge rules and dual pricing vs cash discount vs surcharge.

Visa made sample signs you can look at. They say three things. The one for the point of entry reads: "We impose a surcharge on credit cards that is not greater than our cost of acceptance" (what it costs you to take the card). The ones for the register name the amount, as a percent or a dollar figure. They say it applies to Visa credit card products. They also say "We do not surcharge Visa debit cards". Source: Visa sample surcharge disclosure signage.

You don't have to copy Visa word for word. Visa says merchants "are free to develop their own signage that meets surcharging requirements". It adds a warning, though. It says "Compliance with Visa's requirements does not imply compliance with any relevant State laws."

Example only. Ask your lawyer before you use any of it. The numbers are made up.

At the entrance (example):

We add a surcharge to credit card payments. The surcharge is not more than what it costs us to accept the card.

At the register (example):

A 3% surcharge is added to credit card sales. It is not more than what it costs us to accept the card. Debit cards are not surcharged. The surcharge shows as its own line on your receipt.

On the receipt (example):

Subtotal $100.00
Credit card surcharge (3%) $3.00
Sales tax on $103.00 (surcharge included)
Total: $103.00 plus sales tax

The percent in the second example is a placeholder. Your lawyer and your processor set the real figure. It can't go past the limits below.

So what does the sign stand for? These rules. They come from the card brands' own documents.

• Credit only. "Debit cards and prepaid cards cannot be surcharged." Visa also says a debit card still counts as debit when the customer picks "credit" on the terminal.
• A cap. Visa says to "Limit the amount to your merchant discount rate (MDR) for the applicable credit card or 3% whichever is lowest". If you take Mastercard, it caps the surcharge at the lower of your average effective discount rate for Mastercard credit or 4% (Mastercard's surcharge rules).
• Notice first. Visa says to "Notify your acquirer at least 30 days prior to commencing surcharging" (your acquirer is the bank that handles your card sales; tell it at least 30 days before you start). If you take Mastercard, also tell Mastercard and that bank at least 30 days before you start.

We read the two Washington laws that people cite for this.

RCW 19.200.010 is the card receipt law. It says a business that takes cards "shall [not] print more than the last five digits of the card account number or print the card expiration date on a credit or debit card receipt." It does not mention surcharges. Read it at app.leg.wa.gov. So the receipt that carries your surcharge line must also follow it.

RCW 19.86.020, the Consumer Protection Act, says "unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful." Read it at app.leg.wa.gov. A sign that hides or misstates a fee is the kind of thing a lawyer will check against it.

As of February 15, 2024, Visa understood that Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico prohibit surcharging, and Colorado, Minnesota, New Jersey and New York have requirements. Washington is not on that list. Visa says its list may contain errors and is not legal advice.