Nevada Credit Card Surcharge Laws

Quick Summary:

• Surcharging credit cards is legal in Nevada with specific restrictions
• Surcharge cannot exceed merchant's actual processing costs (typically 1-1.5%)
• Clear disclosure required at point of entry and point of sale
• Federal 4% cap applies, but Visa limits to 3%
• Nevada Attorney General advises consumers to question surcharges above 1.5%

Nevada allows credit card surcharging but with consumer protection measures that set it apart from many other states. While businesses can legally pass processing fees to customers, Nevada law specifically prohibits merchants from profiting on surcharge fees. The Silver State's approach balances business needs with strong consumer protections, requiring transparent disclosure and limiting fees to actual processing costs. Nevada Attorney General Aaron Ford has provided clear guidance that merchants typically pay 1-1.5% in processing fees, making higher surcharges potentially suspicious.

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 Nevada?

Yes, credit card surcharging is legal in Nevada, but with important restrictions. Nevada stands among four states (alongside New York, New Jersey, and South Dakota) that specifically require surcharges not to exceed the merchant's actual cost of acceptance.

Nevada businesses can implement credit card surcharges provided they follow both state and federal guidelines. The key difference in Nevada is the cost-of-acceptance restriction, which prevents merchants from using surcharges as a profit center. According to Nevada Attorney General Aaron Ford's guidance, merchants typically pay 1-1.5% in processing fees, making this the practical ceiling for most Nevada surcharge programs.

What's Allowed

Nevada businesses implementing credit card surcharges can:

• Charge up to actual processing costs - typically 1-1.5% for most merchants
• Apply to all credit card types - Visa, Mastercard, American Express, and Discover
• Use for all transaction channels - in-person, online, and phone payments
• Post dual pricing - show separate cash and credit card prices
• Implement percentage-based fees - calculated as percentage of transaction total

What's Not Allowed

Nevada businesses cannot:

• Exceed actual processing costs - no profit allowed on surcharge fees
• Surcharge debit cards - prohibited under federal law
• Hide surcharge information - must clearly disclose before payment
• Use arbitrary flat fees - surcharges must be percentage-based
• Exceed federal caps - 4% maximum (3% for Visa transactions)

Penalty For Non-Compliance

Nevada enforces surcharge violations through multiple mechanisms:

• Civil penalties up to $500 per violation under Nevada consumer protection laws
• Card network fines - Visa and other networks impose their own penalties
• Consumer complaints - reports to Nevada Attorney General's Consumer Protection Division
• Business license issues - potential regulatory action through Nevada Consumer Affairs

Nevada consumers can file complaints about improper surcharging with the Nevada Attorney General's office or through Nevada Consumer Affairs at (844) 594-7275.

Surcharging vs. Cash Discounts in Nevada

Nevada law treats surcharges and cash discounts differently, providing businesses with flexibility in how they structure their pricing. While surcharges add fees to credit card transactions, cash discounts reduce prices for non-credit payments.

Cash discount programs are generally easier to implement in Nevada because they don't trigger the cost-of-acceptance restrictions that apply to surcharges. Businesses can offer meaningful discounts for cash, check, or debit card payments without needing to document their exact processing costs.

Dual pricing systems allow Nevada merchants to display both cash and credit prices simultaneously, giving customers clear information about their payment options. This approach is particularly popular with gas stations and small retailers.

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Nevada Credit Card Surcharge FAQs

How does Nevada's cost-of-acceptance rule work in practice?

Nevada merchants must limit surcharges to their actual processing costs, which typically range from 1-1.5%. If you pay 2.8% in processing fees, you can charge up to 2.8%. If your fees are only 1.2%, that's your maximum surcharge. The Nevada Attorney General specifically advises consumers to ask for written documentation if they see surcharges above 1.5%.

Can Nevada casinos charge credit card surcharges?

Yes, Nevada casinos can implement surcharges on credit card transactions, but they must follow the same cost-of-acceptance rules as other businesses. Given the high-risk nature of gaming transactions, casinos might have higher processing costs that justify larger surcharges, but they must still provide proper disclosure.

What should Nevada consumers do if they suspect excessive surcharges?

The Nevada Attorney General recommends asking merchants for written documentation of their surcharge policy if fees exceed 1.5%. Consumers can also file complaints with the Nevada Attorney General's Consumer Protection Division or Nevada Consumer Affairs if they believe merchants are charging excessive or undisclosed fees.

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

No, Nevada's surcharge laws apply equally to all transaction types, whether in-person, online, or over the phone. Online merchants must clearly disclose surcharges on their websites before customers complete purchases, similar to how physical stores must post signs at entry points and registers.

Can Nevada restaurants add both automatic gratuity and credit card surcharges?

Yes, restaurants can add automatic gratuity for large parties and credit card surcharges, as long as both fees are clearly disclosed to customers. The surcharge applies only to the portion paid by credit card and must still comply with Nevada's cost-of-acceptance restrictions.

For more information about consumer protection in Nevada, contact:

• Nevada Attorney General's Office: https://ag.nv.gov
• Bureau of Consumer Protection: (702) 486-3132
• Nevada Consumer Affairs: https://consumeraffairs.nv.gov

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