Missouri Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Missouri without state-specific restrictions
• Missouri has convenience fee disclosure requirements for certain payment situations
• Businesses must follow federal limits of 4% maximum surcharge (3% for Visa)
• State law requires clear disclosure of convenience fees with dollar amounts and payment options
• No state penalties, but federal and card network enforcement applies

Missouri takes a business-friendly approach to credit card surcharging, allowing merchants to pass processing costs to customers without significant state-level restrictions. The state focuses on disclosure requirements for convenience fees while relying on federal regulations and card network rules to govern standard surcharge practices.

Unlike states with complex pricing transparency laws or outright surcharge bans, Missouri provides businesses with straightforward compliance requirements. The state's primary regulation involves convenience fee disclosure rules that require merchants to clearly inform customers about additional charges and available payment alternatives.

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 Missouri?

Yes, credit card surcharging is legal in Missouri. The state does not prohibit businesses from adding surcharges to credit card transactions, allowing merchants to implement these fees according to federal guidelines and card network policies.

Missouri's permissive approach means businesses can add surcharges to credit card transactions without navigating complex state-specific requirements. However, the state does have specific disclosure requirements for convenience fees that businesses must follow.

What's Allowed

Missouri businesses can implement credit card surcharges under these conditions:

• Standard surcharge practices - adding fees to credit card transactions following federal rules
• Convenience fee programs - charging fees for alternative payment channels with proper disclosure
• Federal compliance - adhering to the 4% maximum surcharge limit (3% for Visa)
• Cost-based pricing - ensuring surcharges do not exceed actual processing expenses
• Clear customer notification - providing disclosure as required by state convenience fee laws

What's Not Allowed

Missouri businesses must avoid these prohibited practices:

• Surcharging debit cards - federal law prohibits fees on debit transactions
• Inadequate convenience fee disclosure - failing to provide required notice under Missouri law
• Exceeding processing costs - surcharges cannot generate profit beyond actual expenses
• Store-branded card fees - cannot surcharge customers using the business's own credit cards
• Excessive amounts - surcharges above federal limits of 4% or card network restrictions

Missouri's Convenience Fee Disclosure Requirements

Missouri law specifically addresses convenience fees with detailed disclosure requirements. According to Missouri Statutes, any merchant imposing a convenience fee must provide clear disclosure including:

• Dollar amount of the fee - specific cost rather than just percentage
• Nonrefundable statement - if applicable, notice that fees cannot be returned
• Payment method explanation - statement that fee applies to specific payment methods
• Alternative options - list of available payment methods without fees

This disclosure must be provided prior to imposing the fee, ensuring customers understand additional costs before completing transactions.

Penalty For Non-Compliance

Missouri businesses face enforcement primarily through federal and card network channels rather than state penalties:

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

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

Consumer Protection: Missouri consumers can file complaints about deceptive business practices through the state's consumer protection system.

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

• Missouri Attorney General Consumer Protection Hotline
• Phone: 1-800-392-8222
• Email: consumer.help@ago.mo.gov
• Online: Consumer complaint form
• Address: P.O. Box 899, Jefferson City, MO 65102

Is Debit Card Surcharging Legal in Missouri?

No, debit card surcharging is illegal in Missouri and all 50 states. Federal law prohibits surcharges on debit card transactions regardless of how they are processed (PIN or signature).

This federal prohibition applies to all debit transactions including:

• Traditional PIN debit cards
• Signature debit transactions processed like credit
• Prepaid debit cards
• FSA/HSA debit cards

Missouri businesses must ensure their payment systems properly identify card types to avoid accidentally surcharging prohibited debit transactions.

Surcharging vs. Cash Discounts in Missouri

Missouri law distinguishes between surcharges and cash discounts, offering businesses flexibility in how they structure pricing:

Credit Card Surcharges: Adding fees to credit card transactions above a base price. Legal in Missouri following federal and card network rules.

Cash Discounts: Offering reduced prices for cash payments while maintaining higher listed prices for credit cards. Generally faces fewer regulatory restrictions.

Convenience Fees: Charges for specific payment channels outside normal business operations, subject to Missouri's disclosure requirements.

The choice between these approaches can affect compliance requirements and customer perception, with cash discounts often viewed more favorably by consumers.

Types of Businesses That Must Follow Missouri's Surcharge Laws

Missouri's surcharge regulations apply broadly to businesses operating in the state:

Private Businesses: Can implement surcharges following federal guidelines and card network rules. Must comply with Missouri's convenience fee disclosure requirements where applicable.

Government Entities: May face different restrictions, and businesses should verify specific requirements for government contract payments.

Regulated Industries: Some sectors may have additional oversight, but Missouri generally doesn't impose industry-specific surcharge limitations beyond federal requirements.

Missouri Credit Card Surcharge FAQs

Do Missouri businesses need special permits to implement surcharge programs?

No, Missouri doesn't require special licenses or permits for credit card surcharging. Businesses must notify card networks 30 days before starting surcharge programs as required by federal rules, but no state permits are needed.

Can Missouri restaurants add service charges to credit card payments?

Yes, Missouri restaurants can add service charges to credit card payments as long as they comply with the state's convenience fee disclosure requirements and don't exceed federal surcharge limits. Clear customer notification is essential.

Are there different rules for online versus in-person transactions in Missouri?

Missouri's convenience fee disclosure requirements apply to all transaction types, but the method of disclosure may vary. In-person sales require verbal or written notice, while online transactions need clear website disclosure before payment processing.

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

Yes, Missouri gas stations can implement dual pricing systems with different cash and credit card prices. This is typically structured as a cash discount rather than a credit surcharge to comply with regulations.

What should Missouri consumers do if they encounter unexpected credit card fees?

Consumers can contact the Missouri Attorney General's Consumer Protection Hotline at 1-800-392-8222 to file complaints about unexpected fees or deceptive pricing practices. They can also report violations to card networks directly.

Do Missouri credit card surcharges affect sales tax calculations?

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