Arizona Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Arizona with no state restrictions
• Maximum surcharge: 4% of transaction (3% for Visa cards)
• Must clearly disclose fees to customers before payment
• Applies only to credit cards - debit card surcharging is illegal
• Arizona state agencies actively impose surcharges on taxpayers

Arizona permits credit card surcharging without state-specific restrictions, making it one of the most business-friendly states for implementing cost-recovery programs. Arizona state agencies routinely impose surcharges on taxpayer credit card payments, creating clear legal precedent for private businesses. This straightforward approach helps Arizona's construction contractors, equipment suppliers, and manufacturing companies offset rising credit card processing costs that impact their bottom line.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing surcharge programs, as rules can change.

Is Credit Card Surcharging Legal in Arizona?

Yes, credit card surcharging is completely legal in Arizona. The state has no laws prohibiting surcharges on credit card transactions, allowing businesses to follow federal guidelines without additional state-level restrictions.

Arizona state agencies actively impose surcharges on credit card payments through Arizona Senate Bill 1448, which explicitly authorizes government entities to charge processing fees to taxpayers. This creates strong legal precedent for private businesses to implement similar programs.

Arizona follows federal guidelines, which cap surcharges at 4% of the transaction amount (3% for Visa). Businesses must ensure surcharges don't exceed their actual processing costs.

What's Allowed

Arizona businesses can implement surcharge programs with these guidelines:

• Surcharge up to 4% of transaction amount (3% for Visa cards)
• Apply to all credit cards including Visa, Mastercard, American Express, and Discover
• Clear disclosure required through signage, website notifications, and receipts
• All business types eligible including retail, restaurants, and B2B companies
• Government payments can be surcharged (actively practiced by Arizona agencies)

What's Not Allowed

Federal law and card network rules impose these restrictions:

• No debit card surcharging even when processed as credit transactions
• Cannot exceed processing costs - surcharges can't generate profit
• No hidden fees - all surcharges must be disclosed before payment
• Must be clearly itemized on receipts as separate line items

Penalty For Non-Compliance

While Arizona doesn't specify unique penalties for surcharge violations, businesses face enforcement through multiple channels:

• Card network fines ranging from hundreds to thousands of dollars per violation
• Account termination by Visa, Mastercard, or other networks for repeated violations
• Consumer complaints through the Arizona Attorney General's Consumer Protection Unit
• Potential lawsuits under Arizona's Consumer Fraud Act

Customers can file complaints with the Arizona Attorney General by calling (602) 542-5763 in Phoenix, (520) 628-6648 in Tucson, or toll-free at (800) 352-8431. They can also file online consumer complaints directly through the Attorney General's website.

Arizona Credit Card Surcharge FAQs

Can Arizona restaurants add surcharges to credit card payments?‍

Yes, restaurants can legally surcharge credit card transactions. They must post clear notices at entrances and ensure the surcharge appears on receipts.

Do online Arizona businesses need to disclose surcharges?‍

Absolutely. Online businesses must display surcharge information prominently during checkout before customers enter payment details.

Can contractors surcharge large construction invoices?

‍Yes, and this is common practice among Arizona contractors and equipment suppliers. A 3% surcharge on a $40,000 invoice saves $1,200 in processing costs.

What's the maximum surcharge allowed in Arizona?‍

4% of the transaction amount for most cards, but only 3% for Visa transactions. The surcharge cannot exceed actual processing costs.

Can Arizona businesses surcharge government credit card payments?‍

Yes, Arizona state agencies actively surcharge taxpayers for credit card payments, and private businesses can extend this practice to government customers.