New Hampshire Credit Card Surcharge Laws

Quick Summary:

• Surcharging credit cards is legal in New Hampshire without state restrictions
• Federal 4% cap applies (3% for Visa transactions)
• No state-specific disclosure or notification requirements beyond federal rules
• Debit card surcharging prohibited under federal law
• Simple implementation compared to neighboring New England states

New Hampshire takes a straightforward approach to credit card surcharging, operating under federal guidelines without additional state-level restrictions. Unlike neighboring New England states that have implemented bans or complex regulations, the Live Free or Die State allows businesses to implement surcharge programs by simply following federal rules and card network requirements. This business-friendly stance makes New Hampshire one of the most straightforward states for merchants wanting to offset credit card processing costs through customer surcharges.

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 New Hampshire?

Yes, credit card surcharging is completely legal in New Hampshire. The Granite State doesn't have any state-specific laws that restrict or regulate a merchant's ability to impose surcharge fees beyond federal requirements.

New Hampshire's approach contrasts sharply with several neighboring New England states. While Connecticut, Maine, and Massachusetts have banned credit card surcharging entirely, New Hampshire allows businesses to freely implement surcharge programs as long as they comply with federal regulations and card network rules.

For New Hampshire merchants, this means following the standard federal framework: surcharges cannot exceed 4% of the transaction amount (with Visa specifically limiting surcharges to 3%), and businesses must provide proper disclosure to customers before processing payments.

What's Allowed

New Hampshire businesses implementing credit card surcharges can:

• Charge up to federal maximums - 4% of transaction amount (3% for Visa cards)
• Apply to all credit card types - Visa, Mastercard, American Express, and Discover
• Use percentage-based fees - calculated as percentage of total transaction
• Implement across all channels - in-person, online, and phone transactions
• Offer dual pricing - display separate cash and credit card prices

What's Not Allowed

New Hampshire businesses cannot:

• Surcharge debit cards - prohibited under federal Durbin Amendment
• Exceed federal caps - 4% maximum, 3% for Visa transactions
• Use surcharges for profit - fees must only offset processing costs
• Apply arbitrary flat fees - surcharges must be percentage-based
• Hide surcharge information - customers must be informed before payment processing

Penalty For Non-Compliance

While New Hampshire doesn't impose state-specific penalties for surcharge violations, businesses face:

• Card network fines - Visa and other networks impose penalties for non-compliance
• Federal trade practice violations - FTC enforcement for deceptive practices
• Consumer complaints - reports to New Hampshire Attorney General's Consumer Protection Bureau
• Processing account termination - payment processors may close merchant accounts

New Hampshire consumers who believe they've encountered improper surcharging can file complaints with the Consumer Protection & Antitrust Bureau at (603) 271-3641 or toll-free at 1-888-468-4454.

How Surcharging Laws in New Hampshire Have Changed Over Time

New Hampshire's surcharge laws have remained consistently business-friendly throughout the modern era of credit card regulation. Unlike many states that initially banned surcharging and later reversed course, New Hampshire never implemented restrictive state-level surcharge laws.

The state's approach reflects its broader "Live Free or Die" philosophy of minimal government intervention in business operations. When the landmark 2013 federal court decision in Italian Colors Restaurant v. Becerra opened the door for widespread surcharging, New Hampshire businesses were already free to implement these programs.

This stability has given New Hampshire merchants a competitive advantage over businesses in neighboring states that have faced changing regulations and compliance challenges over the years.

Is Debit Card Surcharging Legal in New Hampshire?

No, debit card surcharging is illegal in New Hampshire, as it is in all 50 states. This prohibition comes from federal law, specifically the Durbin Amendment to the Dodd-Frank Act, which regulates debit card interchange fees and prohibits surcharges on debit card transactions.

The federal debit card surcharge ban applies even when debit cards are processed as "credit" transactions (signature-based rather than PIN-based). New Hampshire businesses must ensure their surcharge programs only apply to actual credit cards, not debit or prepaid cards.

Violating the federal debit card surcharge prohibition can result in significant penalties from card networks and federal regulators, regardless of state law.

New Hampshire Credit Card Surcharge FAQs

How do New Hampshire's surcharge laws compare to other New England states?

New Hampshire is the only New England state that allows unrestricted credit card surcharging. Connecticut, Maine, and Massachusetts have all banned the practice entirely, while Vermont and Rhode Island allow surcharging but with various restrictions. This makes New Hampshire particularly attractive for businesses serving the broader New England market.

Can New Hampshire seasonal businesses implement surcharges during peak tourist season?

Yes, New Hampshire businesses can implement surcharges at any time, including seasonally. However, if you plan to start and stop surcharging based on seasons, you must notify card networks 30 days before implementing surcharges and follow proper customer disclosure requirements each time you restart the program.

Do New Hampshire ski resorts and tourism businesses commonly use surcharges?

Many New Hampshire tourism businesses, including ski resorts, restaurants, and lodging facilities, have implemented surcharge programs to offset the high processing costs associated with vacation spending. The state's clear legal framework makes it easy for these businesses to implement transparent surcharge policies.

Are there different rules for New Hampshire businesses that operate across state lines?

New Hampshire businesses operating in multiple states must comply with the most restrictive state's laws. For example, if you have locations in both New Hampshire and Massachusetts, you cannot surcharge at your Massachusetts location due to that state's ban, even though it's legal in New Hampshire.

Can New Hampshire online businesses surcharge out-of-state customers?

Yes, New Hampshire-based online businesses can surcharge customers nationwide, as long as they comply with the customer's state laws. However, they cannot surcharge customers in states that prohibit the practice, such as Connecticut, Maine, Massachusetts, and New York.

For more information about consumer protection in New Hampshire, contact:

• New Hampshire Department of Justice: https://www.doj.nh.gov
• Consumer Protection & Antitrust Bureau: (603) 271-3641
• New Hampshire Secretary of State: https://www.sos.nh.gov

Ready to streamline your payment processing without adding surcharge complexity? Nickel offers free ACH transfers and straightforward 2.9% credit card processing with no hidden fees or confusing terms. Get started today and focus on what matters most - growing your business.