How much to surcharge to cover your fee
The surcharge that leaves you exactly whole is (sale × rate + fixed fee) ÷ (1 − rate), because your processor charges its rate on the surcharge too. On a $100 sale at 2.9% + 30¢ that’s $3.30.
The catch is the cap. Visa allows a surcharge on credit cards only, no higher than your merchant discount rate or 3%, whichever is lowest (Visa U.S. Merchant Surcharge Q&A). With a 2.9% rate, the most you can add on $100 is $2.90, so a few cents of fee stay with you.
| $100 sale | They pay | Fees | Fee rate | You keep |
|---|---|---|---|---|
| Surcharge · 2.6% + 15¢ | $102.60 | $2.82 | 2.75% | $99.78 |
| Surcharge · 2.9% + 30¢ | $102.90 | $3.28 | 3.19% | $99.62 |
| Surcharge · 3.5% + 10¢ | $103.00 | $3.71 | 3.60% | $99.29 |
| Cash discount · 2.9% + 30¢ | $103.30 | $3.30 | 3.19% | $100.00 |
Surcharge Fee: How Much You Can Add in the US
Three rules decide the surcharge fee you’re allowed to add:
- Card type. Credit only. Debit and prepaid cards can’t carry a surcharge, even when the customer presses “credit”.
- Amount. No more than your cost of acceptance or 3%. If your rate is 3.5% on typed-in cards, you still stop at 3%.
- Disclosure. Signs at the entrance and at checkout, and the surcharge shown on every receipt. Visa also expects 30 days’ notice to your acquirer before you start.
State law sits on top. As of February 2024, Visa understood that Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico prohibit surcharging, and Colorado, Minnesota, New Jersey and New York add requirements. We’re not lawyers; check your state before you start.
Cash Discount Program vs Surcharge: Same Math, Different Rules
A cash discount program raises the list price to cover the card fee and gives cash payers money off. Card customers pay the same total either way; what differs is the framing and which rules apply. Discounts for cash are generally allowed where surcharges aren’t, which is why some businesses in prohibiting states use them. The calculator’s Cash discount mode shows the list price and the discount.
Not sure what your rate actually is? Work out your effective rate first with the credit card processing fee calculator.