Georgia Credit Card Surcharge Laws

Quick Summary:

• Surcharging is legal with conditions: Georgia allows credit card surcharges but requires alternative payment methods
• Alternative payment requirement: Must offer cash, check, or money order options without fees
• No profit allowed: Surcharges cannot exceed merchant's actual processing costs
• Disclosure requirements: Must post notices at entry, point of sale, and on receipts
• Convenience fees permitted: Can charge flat fees on debit cards if alternative payment methods available

Georgia takes a balanced approach to credit card surcharging, allowing the practice while implementing consumer protections. Under Georgia House Bill 299, businesses can recover credit card processing costs through surcharges, but only when customers have fee-free alternatives available. This requirement prevents businesses from forcing all customers to absorb credit card costs while maintaining competitive payment options.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Georgia's surcharge laws include specific requirements that vary from federal guidelines, so consult with an attorney before implementing surcharging programs.

Is Credit Card Surcharging Legal in Georgia?

Yes, credit card surcharging is legal in Georgia under specific conditions established by state law. Georgia allows businesses to add surcharges to credit card transactions, but mandates that merchants must also offer alternative payment methods (cash, check, or money order) where no additional fees are charged.

This requirement distinguishes Georgia from many other states by ensuring customers always have a fee-free payment option, preventing businesses from universally passing credit card costs to all customers regardless of their payment choice.

What's Allowed

Georgia businesses can legally implement these surcharging practices:

Credit card surcharges:

• Percentage-based fees to recover actual processing costs
• Cannot exceed merchant's cost of credit card acceptance
• Must be clearly disclosed at multiple points in transaction

Convenience fees on electronic payments:

• Flat dollar amounts for credit and debit card transactions
• Allowed only when alternative fee-free methods are available
• Must represent actual cost to merchant or average cost for that payment type

Required disclosures:

• Notice posted at business point of entry
• Disclosure at point of sale before transaction
• Exact surcharge amount shown on customer receipt

What's Not Allowed

Georgia law prohibits these surcharging practices:

Surcharging without alternatives:

• Cannot surcharge if only accepting credit cards
• Must provide cash, check, or money order options without fees
• Cannot make fee-free alternatives unreasonably difficult

Excessive or deceptive charges:

• Surcharges exceeding actual processing costs (no profit allowed)
• Misleading advertising about pricing differences
• Concealing surcharge information until checkout

Improper disclosure:

• Failing to post entry notices about surcharge policies
• Not showing exact surcharge amounts on receipts
• Deceptive advertising of lower prices than actually charged

Penalty For Non-Compliance

Georgia enforces surcharge violations through consumer protection laws:

Deceptive practices violations: Improper disclosure or misleading pricing may violate Georgia's Fair Business Practices Act, which prohibits false or deceptive advertising and unfair business practices.

Civil enforcement: The Georgia Attorney General's Consumer Protection Division can investigate patterns of violations and take enforcement action against businesses engaging in deceptive surcharge practices.

Consumer complaints: File complaints with Georgia Attorney General's Consumer Protection Division at (404) 651-8600 or online at consumer.ga.gov for businesses improperly charging fees or failing to provide required disclosures.

COVID-related surcharges: The state has noted that COVID-19 surcharges may be permissible under certain circumstances, but all price representations must be truthful and not misleading, with proper advance disclosure required.

Georgia Credit Card Surcharge FAQs

Can Georgia businesses charge credit card surcharges if they only accept cards online?

No, Georgia's alternative payment method requirement applies to all businesses, including online retailers. Even e-commerce businesses must provide customers with fee-free payment options like checks or money orders to legally impose credit card surcharges. Simply accepting different types of cards doesn't satisfy this requirement.

What's the difference between surcharges and convenience fees in Georgia?

Georgia law distinguishes between these fee types: surcharges are percentage-based fees applied only to credit cards to recover processing costs, while convenience fees are flat dollar amounts that can be applied to all electronic payments (including debit cards) when fee-free alternatives exist. Both require alternative payment methods to be legal.

Can Georgia gas stations charge different prices for cash versus credit?

Yes, but they must clearly display both cash and credit prices with equal prominence. This dual pricing system is allowed under Georgia law as long as customers can clearly see the price difference before deciding how to pay. The credit card price cannot exceed the merchant's actual cost of acceptance plus the base price.

Are there special rules for different types of Georgia businesses?

Georgia's surcharge laws apply uniformly across all business types, with some specific provisions for lenders and certain financial transactions under Georgia Code § 13-1-15. However, the core requirements of offering alternative payment methods and not profiting from surcharges apply to all merchants, whether retail, service, or professional businesses.

How does Georgia's "no profit" rule work in practice?

Georgia prohibits merchants from using surcharges as profit centers, meaning the surcharge cannot exceed the actual cost of credit card processing. For businesses with varying processing costs across different card types, Georgia allows using the average actual cost for that payment type rather than calculating exact costs per transaction, provided this doesn't result in profit.