Credit Card Surcharge Sign Examples and Templates

Offsetting expensive payment processing with credit card surcharge has become essential for businesses to keep afloat. It’s the hard truth as, according to the latest 2023 report, payment processors in the United States earned a staggering $172 billion in swipe fees alone. And amidst the price hikes, the future data will climb to bypass the current figures.

This quick accumulation of payment processing fees is pushing more and more merchants to add a surcharging program. However, before you do that, it’s crucial to understand the exact credit card fee sign rules to maintain transparency with your customers and comply with the set regulations.

Having an explicit knowledge of these requirements from the onset of surcharging can help you avoid misunderstandings between your business and the customers and build a solid foundation of trust. Below, we will guide you through the legal leeway for surcharge notices and provide you with some templates to use.

What Is Credit Card Surcharge?

With credit card surcharge programs, merchants offset the payment processing fees and pass them directly to the customers who choose to pay using credit cards. By adding this program, businesses save on interchange and assessment fees for processing credit card transactions. For example, during the checkout, when you choose to pay with a credit card at the point of sale, the merchant might add an extra charge of up to 4% to the total bill, which covers the processing cost incurred by the business.

While the surcharge program is legal in most states, some of the states prohibit and restrict it. The specific legalities and regulations also vary by jurisdiction. To give you an example, as of July 1, 2024, the state of California prohibits the implementation of a credit card surcharge program. Businesses are directed to include the fees in the price of the sold items. And states like Colorado have set a surcharge cap at 2%.

Additionally, credit card networks like MasterCard and Visa also have their own rules limiting the surcharge amounts to the merchant discount rate, where MasterCard sets it at 4% and Visa at 3%.

While surcharging can help merchants manage processing costs, it has been debated. Critics argue that surcharges can lead to higher consumer prices and may be applied inconsistently, which is confusing. In response, some regions have implemented regulations to cap or ban surcharges. For instance, the European Union capped interchange fees and prohibited surcharges on consumer credit and debit card transactions to promote transparency and fairness.

As payment processing fees continue to rise, surcharging remains a consideration for merchants seeking to offset these costs. However, businesses must navigate a complex landscape of legal and card network regulations to implement surcharging practices appropriately. Staying informed about current laws and network rules is essential for merchants considering surcharging to manage payment processing expenses.

How to Implement Credit Card Surcharging?

To implement a credit card surcharge, businesses can follow a structured process to offset processing costs while ensuring compliance with regulations and customer transparency.

• First, verify legal compliance within your jurisdiction. Check state regulations, as some states, including Connecticut, Maine, Massachusetts, and California (effective July 1, 2024), prohibit surcharges, while others impose specific limitations or requirements. Federal law allows a maximum surcharge of 4% but states like Colorado cap it at 2%. Confirm these rules to avoid legal issues.
• Second, notify card networks and payment processors. Inform major networks, such as Visa, Mastercard, American Express, and Discover, of your intent to apply surcharges, as each may have unique notification requirements. Additionally, notify your payment processor or acquiring bank at least 30 days in advance, ensuring they support surcharges and can guide you through compliance.
• Third, familiarize yourself with card network rules. Surcharges must not exceed your cost of acceptance and are capped at 4% of the transaction value. These surcharges cannot be applied to debit or prepaid card transactions, even when processed as credit. Disclose surcharge details to customers at the point of entry and point of sale, both in-store and online, and itemize the surcharge on receipts.
• Fourth, implement appropriate signage and disclosures. For in-store transactions, post clear notices at entrances and points of sale that include the surcharge percentage. For online transactions, display surcharge details prominently on your homepage and during checkout to ensure customers are informed before completing their purchase.
• Fifth, configure your point-of-sale (POS) systems to support surcharges. Update the software to apply and itemize surcharges on receipts automatically—train staff to communicate the policy effectively and address customer inquiries confidently.
• Finally, regularly review compliance. Stay updated on changing laws and card network rules to ensure your surcharge policy remains lawful. Monitor customer feedback to assess the impact of surcharges and make adjustments as needed to maintain customer satisfaction.

Credit Card Surcharge Sign Examples and Templates

Below are some of the examples and templates of credit card surcharge signs that merchants can use in different situations, according to their business needs. Ensure you are well-versed with local regulations to confirm specific wording requirements. You should place this signage near the point of sale or cash register, and it should be visible for the customers to see without any obstructions or difficulty in reading it.

Now, let’s see some examples and templates of printable credit card fee signs that you can use:

1. General Surcharge Sign (Example)

Attention Customers

A _% surcharge will be applied to credit card transactions. This fee helps us cover the costs of processing credit card payments.

– We accept (CARD_NAME1), (CARD_NAME2), (CARD_NAME3), and (CARD_NAME4).

– No surcharge applies to debit or prepaid cards.

Thank you for your support and understanding.

2. Cash Discount Program Sign (Template)

Pay Less with Cash!

All displayed prices reflect a cash discount. If you pay by credit card, a _% fee will be added to cover processing costs.

Thank you for your business!

3. Legal Compliance Example

Surcharge Notice!

In accordance with state and federal regulations, a _% surcharge will be added to all credit card payments.

This fee does not apply to debit or prepaid cards.

We appreciate your understanding.

4. Small Business Transparency Sign (Template)

Help Us Stay Competitive

A _% processing fee is applied to all credit card purchases. Paying with cash or debit helps us keep prices low for everyone.

Thank you for supporting our small business.

5. E-Commerce Checkout Notice (on website)

Payment Surcharge Alert!

A 3% surcharge will be added to your total for credit card payments. This fee helps us offset processing costs.

You can avoid this fee by choosing ACH or debit at checkout.

Thank you for shopping with us!

Use clear and simple language so customers can easily understand the surcharge policy. For example, a sign might read: “A _% surcharge will be added to all credit card transactions.” Avoid complex phrasing to minimize confusion and maintain transparency.

Follow general design principles to make the signage visually accessible and easy to read. Position the signs at eye level and use legible fonts like Calibri, Ariel, and Verdana. Highlight important information, such as the surcharge percentage and available payment alternatives, with Bold or Underlined text, contrasting colors, or visuals that draw attention to key details.

You should also ensure compliance by adhering to state laws and credit card network guidelines, as requirements may vary. For example, some states mandate specific language or formatting, while credit card networks like Visa and MasterCard also provide templates for the surcharge signage (VISA, MASTERCARD). Consulting these resources helps ensure the signage meets all regulatory and contractual standards.

Additionally, your payment processor can guide you through the specific requirements in your area and help you set up the surcharge sign near your point of sale.

Tips to Consider Before Adding Credit Card Surcharge Program

1. Set Reasonable Surcharge Levels:

When implementing surcharges, ensure they reflect the actual cost of credit card processing, typically between 1.5% and 3.5% of the transaction amount. Avoid excessive surcharges, as they can discourage customers and may breach regulatory limits.

2. Offer Multiple Payment Options:

Provide customers with alternative payment methods such as cash, debit cards, or digital wallets, which often have lower or no associated fees. To further encourage their use, consider offering discounts for non-credit card payments.

3. Educate and Train Staff:

Equip employees with a thorough understanding of the surcharge policy so they can effectively communicate it to customers and address any questions or concerns.

4. Regularly Review and Adjust Policies:

Stay informed about changes to laws and card network rules to maintain compliance. Additionally, monitor customer feedback to evaluate their response to the surcharges and adjust the policy if needed to preserve satisfaction.

5. Document the Policy:

Keep comprehensive records of the surcharge policy, including calculations, application methods, and compliance details. Proper documentation supports staff training and helps address customer inquiries effectively.

6. Apply Surcharges Uniformly:

Ensure surcharges are applied consistently across all credit card types unless specific card network rules require otherwise. Uniform application minimizes confusion and dissatisfaction.

7. Monitor for Legal Changes:

Regularly update your understanding of laws and card network policies, as changes may affect the implementation or terms of surcharges. Stay proactive in maintaining compliance with evolving regulations.

Conclusion

Implementing a credit card surcharge program can be an effective strategy for businesses to manage rising payment processing fees. However, it requires careful planning, adherence to legal and network regulations, and clear communication with customers. Companies can maintain customer trust and minimize potential backlash by setting reasonable surcharge levels, providing transparent credit card processing fee signs, and offering multiple payment options.

Regularly reviewing compliance and staying updated on legal changes ensures the program remains lawful and practical. With the examples and templates, businesses can create compliant signage and establish a surcharge policy that aligns with operational needs and customer expectations.

Frequently Asked Questions