Mississippi Credit Card Surcharge Laws

Mississippi takes a business-friendly approach to credit card surcharging, allowing private merchants to pass processing costs to consumers without state-imposed restrictions. The state relies on federal regulations and card network rules to govern surcharge practices, making it one of the more permissive jurisdictions for businesses seeking to recover credit card processing fees.

Mississippi has never enacted surcharge restrictions — a 2020 bill (SB 2035) that would have barred local governments from surcharging died in committee. Current law actually runs the other way: counties and municipalities that accept card payments assess the processing fee to the payer, capped at that fee (Miss. Code § 17-25-1). None of this affects private businesses, which surcharge under card network rules alone.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing surcharge programs, as federal rules and card network requirements still apply.

Is Credit Card Surcharging Legal in Mississippi?

Yes, credit card surcharging is legal for private businesses in Mississippi. The state does not have laws prohibiting or restricting credit card surcharges for private merchants, allowing businesses to implement these fees according to federal guidelines and card network rules.

Mississippi's permissive approach means businesses can add surcharges to credit card transactions without navigating complex state-specific requirements found in other jurisdictions. However, companies must still comply with federal regulations and card brand policies from Visa, MasterCard, American Express, and Discover.

What's allowed in Mississippi

Mississippi businesses can implement credit card surcharges under these conditions:

• Standard surcharge practices - adding fees to credit card transactions to offset processing costs
• Network compliance - following card network caps (3% for Visa, 4% for Mastercard)
• Card network adherence - meeting notification and disclosure requirements from major card brands
• Cost-based pricing - ensuring surcharges do not exceed actual processing expenses
• Customer notification - providing clear disclosure before transactions are completed

What's not allowed in Mississippi

While Mississippi state law is permissive, federal and card network rules still prohibit:

• Surcharging debit cards - prohibited by card network rules in every state
• Exceeding cost limits - surcharges cannot generate profit beyond processing expenses
• Store-branded card fees - cannot surcharge customers using the business's own credit cards
• Inadequate disclosure - failing to notify customers about surcharge policies
• Excessive amounts - surcharges above card network caps (3% for Visa, 4% for Mastercard)

Government Payments: What Mississippi Law Actually Says

A common misreading: Senate Bill 2035, often cited as banning government surcharges, died in committee in 2020 and was never enacted — near-identical bills failed in every session through 2026. What Mississippi law actually says (Miss. Code § 17-25-1): local governments accepting electronic payments assess the associated fees to the payer "so that the user will pay the full cost," and may not add anything above the processing fee.

Penalties for non-compliance in Mississippi

Mississippi businesses face penalties primarily through federal enforcement and card network violations rather than state-level sanctions:

Card Network Penalties: Visa, MasterCard, and other networks can impose fines ranging from $1,000 to $1 million for merchants violating surcharge rules, including excessive fees or inadequate disclosure practices.

Network Violations: Businesses exceeding the card networks' surcharge caps (3% for Visa, 4% for Mastercard) or improperly surcharging debit cards may face enforcement action from the card networks.

Consumer Complaints: Mississippi residents can file complaints about deceptive business practices with the state Attorney General's Office, which may investigate patterns of improper surcharging.

To report surcharge violations or file consumer complaints in Mississippi, contact:

• Mississippi Attorney General's Office Consumer Protection Division
• Phone: (601) 359-3680
• Mailing Address: P.O. Box 22947, Jackson, MS 39225-2947
• Online: Consumer complaint form

Is Debit Card Surcharging Legal in Mississippi?

No — card network rules prohibit debit card surcharging in Mississippi and all 50 states. These network rules bar surcharges on debit card transactions, regardless of whether the debit card is processed with a PIN or signature. (Debit interchange is separately capped under the federal Durbin Amendment — the economics behind the networks' rule.)

This card network prohibition applies to all debit transactions including:

• Traditional PIN debit cards
• Signature debit transactions
• Prepaid debit cards
• FSA/HSA debit cards

Mississippi businesses must ensure their payment systems can distinguish between credit and debit cards to avoid accidentally surcharging prohibited transactions, as violations can result in significant federal penalties.

Types of Businesses That Must Follow Mississippi's Surcharge Laws

Mississippi's surcharge regulations apply differently based on business type:

Private Businesses: Can legally implement credit card surcharges following federal guidelines and card network rules. This includes retailers, restaurants, service providers, and other commercial enterprises.

Government Entities: under Miss. Code § 17-25-1, counties and municipalities that accept card payments pass the processing fee through to the payer at cost — no markup. The oft-cited SB 2035 ban never passed. Government card payments with pass-through fees include:

• Tax payments
• Court fines and fees
• License and permit fees
• Other government receivables

Regulated Industries: Some businesses may face additional restrictions based on their regulatory oversight, but Mississippi generally does not impose industry-specific surcharge limitations beyond federal requirements.