Mississippi Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal for private businesses in Mississippi
• No state-specific restrictions on surcharge amounts or disclosure requirements
• State agencies and local governments are prohibited from surcharging under recent legislation
• Federal limits of 4% maximum surcharge apply (3% for Visa transactions)
• Businesses must follow card network rules for notification and compliance

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.

Recent legislative changes have specifically prohibited counties, municipalities, and state agencies from imposing surcharges on electronic payments, but these restrictions do not affect private businesses. This creates a clear distinction between public and private sector payment policies in Mississippi.

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

Mississippi businesses can implement credit card surcharges under these conditions:

• Standard surcharge practices - adding fees to credit card transactions to offset processing costs
• Federal compliance - following the 4% maximum surcharge limit (3% for Visa)
• 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

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

• Surcharging debit cards - federal law prohibits fees on debit transactions
• 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 4% federally or 3% for Visa transactions

Special Restrictions for Government Entities

Mississippi Senate Bill 2035 specifically prohibits counties, municipalities, and state agencies from imposing surcharges or transaction fees on electronic payments for taxes, fees, fines, and other government receivables. This restriction does not apply to private businesses but affects how government entities can handle credit card processing costs.

Penalty For Non-Compliance

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.

Federal Violations: Businesses exceeding the 4% federal surcharge limit or improperly surcharging debit cards may face enforcement action from federal regulators.

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, debit card surcharging is illegal in Mississippi and all 50 states. Federal law under the Durbin Amendment prohibits surcharges on debit card transactions, regardless of whether the debit card is processed with a PIN or signature.

This federal 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: Counties, municipalities, and state agencies are specifically prohibited from surcharging electronic payments under Mississippi Senate Bill 2035. This includes:

• 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.

Mississippi Credit Card Surcharge FAQs

Do Mississippi businesses need to notify customers about surcharge policies?

Yes, while Mississippi doesn't have specific state notification requirements, federal card network rules require businesses to inform customers about surcharge policies through signage, verbal disclosure, or website notices before transactions are completed.

Can Mississippi restaurants add service charges to credit card payments?

Mississippi restaurants can add service charges to credit card payments as long as they comply with card network disclosure requirements and don't exceed federal surcharge limits. The charges must be clearly communicated to customers.

Are there different rules for online businesses versus brick-and-mortar stores in Mississippi?

Mississippi doesn't distinguish between online and physical businesses for surcharge purposes. Both must follow the same federal guidelines and card network rules, though disclosure methods may vary (website notices for online vs. signage for physical locations).

Can Mississippi businesses surcharge government credit cards?

While Mississippi allows private businesses to surcharge credit cards generally, businesses should check specific government contract terms, as some government entities may negotiate surcharge-free payment processing in their vendor agreements.

What should Mississippi consumers do if charged illegal surcharges?

Consumers can file complaints with the Mississippi Attorney General's Consumer Protection Division at (601) 359-3680 or report violations directly to card networks like Visa and MasterCard, which have enforcement mechanisms for rule violations.

Do Mississippi credit card surcharges affect sales tax calculations?

Mississippi businesses should consult with tax professionals about whether surcharges are included in taxable sales amounts, as different states treat these fees differently for sales tax purposes.