Connecticut Credit Card Surcharge Laws

Quick Summary:

• Surcharging is illegal: Connecticut prohibits all credit card surcharges on consumer transactions
• Cash discounts allowed: Businesses can offer discounts for cash, check, or debit payments with proper disclosure
• Government exemptions: State agencies, municipalities, and courts can charge credit card fees
• Strict penalties: Up to $500 per violation under Connecticut Unfair Trade Practices Act
• Dual pricing prohibited: Cannot list separate cash and credit prices or add fees at checkout

Connecticut maintains one of the strictest anti-surcharge laws in the United States under General Statute § 42-133ff. Unlike other states that allow surcharges with restrictions, Connecticut completely prohibits businesses from charging additional fees when customers pay with credit cards. The law is designed to ensure price transparency and prevent businesses from passing credit card processing costs to consumers through hidden fees or last-minute charges.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing pricing programs, as violations carry significant penalties under state consumer protection laws.

Is Credit Card Surcharging Legal in Connecticut?

No, credit card surcharging is illegal in Connecticut under General Statute § 42-133ff, which prohibits businesses from imposing surcharges based on payment method. Connecticut is one of only four states that completely ban credit card surcharges, making it one of the strictest anti-surcharge jurisdictions in the nation.

The law defines a surcharge as "any additional charge or fee that increases the total amount of a transaction for the privilege of using a particular form of payment." This broad definition covers fees that businesses might call "transaction fees," "processing fees," or "convenience fees" when applied specifically to credit card payments.

What's Allowed

Connecticut businesses can legally implement these alternatives to surcharging:

Cash discount programs:

• Offer discounts for cash, check, or debit card payments
• List credit card price as the regular price
• Clearly disclose discount policies to customers

Proper dual pricing:

• Display both cash and credit prices with equal prominence
• Provide clear notice of discount policies
• Show discount amount on customer receipts

Government entity exemptions:

• State agencies can charge processing fees
• Municipalities can add fees for taxes and permits
• Courts can impose fees for certain services

What's Not Allowed

Connecticut law strictly prohibits these surcharging practices:

Prohibited surcharge methods:

• Adding fees at checkout for credit card use
• Separate line items labeled as processing or convenience fees
• Any additional charge based on payment method choice

Deceptive pricing practices:

• Listing cash price then adding credit card fees
• Hidden surcharges revealed only at payment
• Using misleading terms to disguise surcharges

Improper dual pricing:

• Listing separate prices without proper disclosure
• Adding fees to advertised prices during sale
• Charging more than the highest listed price

Penalty For Non-Compliance

Connecticut enforces surcharge violations under the state's Unfair Trade Practices Act (CUTPA), which provides multiple enforcement mechanisms:

Civil penalties: Businesses face fines up to $500 per violation, with each improper surcharge counting as a separate offense.

Government enforcement: Both the Department of Consumer Protection and Attorney General can investigate complaints and take enforcement action, including seeking injunctive relief and restitution.

Private lawsuits: Consumers can file private lawsuits under CUTPA seeking compensatory damages, punitive damages, and attorney's fees, including class action suits.

Consumer reporting: File complaints with the Department of Consumer Protection at dcp.complaints@ct.gov or the Attorney General's Office at attorney.general@ct.gov or (860) 808-5000.

Connecticut Credit Card Surcharge FAQs

Can Connecticut gas stations charge different prices for cash and credit?

Yes, gas stations can display different prices for cash and credit payments, but they must show both prices clearly and cannot add fees at the pump. The cash and credit prices must be displayed with equal prominence, and customers cannot be charged more than the posted credit price. This is considered dual pricing rather than surcharging.

Are convenience fees legal if they apply to all payment methods?

True convenience fees that apply equally to all payment methods may be legal, but if the fee is only charged when customers use credit cards (even if disguised as applying to "all electronic payments"), it becomes an illegal surcharge. Connecticut courts focus on whether the fee is actually tied to credit card use rather than what businesses call it.

What about online businesses charging Connecticut customers?

Out-of-state businesses selling to Connecticut residents must comply with Connecticut surcharge laws when the transaction occurs in Connecticut. However, enforcement can be challenging for businesses without a Connecticut presence. The state recommends consumers report violations and may refer complaints to the business's home state authorities.

Can Connecticut businesses ask customers to voluntarily pay processing fees?

No, requesting voluntary payments to cover credit card processing fees is still considered a prohibited surcharge under Connecticut law. The law prohibits any additional charge based on payment method, regardless of whether it's mandatory or voluntary. Businesses cannot circumvent the law by framing surcharges as optional.

How does Connecticut's law affect professional service providers?

Licensed professionals like attorneys, accountants, and medical providers must follow the same surcharge prohibition as other businesses. Some professional associations have issued guidance reminding members that convenience fees for credit cards violate Connecticut law, even when clients agree to pay them in retainer agreements or service contracts.

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