Nebraska Credit Card Surcharge Laws

Quick Summary:

• Surcharging credit cards is legal in Nebraska without state-specific restrictions
• Federal 4% cap applies (3% for Visa transactions)
• Businesses must disclose surcharges to customers before processing payments
• Debit card surcharging is prohibited under federal law
• No state laws currently restrict or prohibit credit card surcharging

Nebraska stands among the majority of states that allow businesses to implement credit card surcharges to offset processing costs. Unlike states with complex regulations or outright bans, Nebraska operates under a straightforward legal framework where credit card surcharging is permitted without additional state-level restrictions. Businesses in the Cornhusker State can legally pass credit card processing fees to customers, provided they follow federal guidelines and card network rules.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing surcharge programs, as rules can change and vary by business type.

Is Credit Card Surcharging Legal in Nebraska?

Yes, credit card surcharging is completely legal in Nebraska. There are no state laws that prohibit this practice for businesses, making it one of the more straightforward states for merchants who want to implement surcharge programs.

Nebraska businesses can legally add surcharges to credit card transactions as long as they comply with federal regulations and card network requirements. The state itself demonstrates acceptance of this practice - the Nebraska Legislature statute allows state agencies to impose surcharges on credit card payments to offset processing costs.

Since Nebraska doesn't impose additional state-level restrictions, businesses must follow the standard federal framework that caps surcharges at 4% of the transaction amount (with Visa specifically limiting surcharges to 3%).

What's Allowed

Nebraska businesses implementing credit card surcharges can:

• Charge up to the federal maximum - 4% of transaction amount (3% for Visa cards)
• Apply surcharges to all credit card types - Visa, Mastercard, American Express, and Discover
• Use percentage-based fees - calculated as a percentage of the total transaction
• Implement for all transaction types - in-person, online, and phone transactions
• Pass through actual processing costs - recover the fees charged by payment processors

What's Not Allowed

Nebraska businesses cannot:

• Surcharge debit cards - prohibited under federal law even when run as credit
• Exceed cost of acceptance - surcharges cannot be higher than actual processing fees
• Use surcharges for profit - fees must only offset processing costs, not generate revenue
• Apply arbitrary flat fees - surcharges must be percentage-based, not fixed dollar amounts
• Hide surcharge information - customers must be informed before payment processing

Penalty For Non-Compliance

While Nebraska doesn't have specific state penalties for improper surcharging, violations can result in:

• Card network penalties - Visa and other networks can impose fines for non-compliance
• Federal trade practice violations - FTC action for deceptive business practices
• Consumer complaints - reports to the Nebraska Attorney General's Consumer Protection Division
• Loss of processing privileges - payment processors may terminate merchant accounts

Nebraska consumers who believe they've been improperly charged can file complaints with the Nebraska Attorney General's Consumer Affairs Response Team at (402) 471-2682 or toll-free at (800) 727-6432.

‍

Nebraska Credit Card Surcharge FAQs

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

Yes, gas stations in Nebraska can display dual pricing with separate cash and credit prices. This is considered a cash discount program rather than a surcharge, and it's perfectly legal. The key is that both prices must be clearly displayed with equal prominence.

Do Nebraska state agencies charge credit card surcharges?

Yes, Nebraska state law specifically allows state officials and agencies to impose surcharges on credit card payments to offset processing costs. For example, when paying taxes or fees to state agencies, you may encounter a convenience fee for using a credit card.

What's the maximum surcharge a Nebraska business can legally charge?

Federal law caps surcharges at 4% of the transaction amount, but Visa specifically limits surcharges to 3%. Nebraska businesses should follow the most restrictive rule, which means 3% for Visa cards and 4% for other card types.

Can Nebraska restaurants add automatic gratuity and credit card surcharges?

Yes, restaurants can add both automatic gratuity for large parties and credit card surcharges, as long as both fees are clearly disclosed to customers before payment. The surcharge applies only to the portion paid by credit card, not to cash tips.

Are there any Nebraska businesses that cannot implement surcharges?

Nebraska doesn't have industry-specific restrictions on surcharging like some other states. However, businesses in regulated industries should check with their professional licensing boards, as some may have specific rules about fee disclosure or billing practices.

For more information about consumer protection issues in Nebraska, contact:

• Nebraska Attorney General's Office: https://ago.nebraska.gov
• Consumer Protection Division: (402) 471-2682
• Secretary of State Business Services: https://sos.nebraska.gov

Ready to start processing payments without the fees eating into your profits? Nickel offers free ACH transfers and transparent credit card processing at 2.9% with no hidden fees. Get started today and keep more of your hard-earned revenue.