What happened to North Carolina's House Bill 13?

HB 13 has not become law — it has sat in the House Rules Committee since September 2025 — but it technically remains alive through the 2025–26 biennium. The latest version would cap surcharges at 2% of the transaction, require disclosure at store entrances and the point of sale (homepage and payment page online, verbal disclosure for phone sales), bar surcharging when cards are the only accepted payment method, and carry a $500 civil penalty per violation. For now, card-network rules remain the operative requirements.

Can North Carolina restaurants add service charges to cover credit card fees?

Yes, restaurants can add service charges, but they must clearly disclose these fees and offer alternative payment methods. The charges cannot exceed the actual cost of processing credit cards and must be presented transparently to customers before payment.

How should North Carolina businesses prepare for potential law changes?

Businesses should review their current surcharge practices, ensure proper disclosure procedures are in place, and train staff on surcharge policies. HB 13 — which would add a 2% cap and state disclosure rules — has sat in committee since September 2025 (technically still alive this biennium) and has not become law, so card-network requirements (clear disclosure, credit-only surcharging, cost-capped fees) remain the standard to follow.

Where can North Carolina consumers file complaints about improper surcharges?

Consumers can file complaints with the North Carolina Attorney General's Consumer Protection Division at 1-877-5-NO-SCAM or dispute charges directly with their credit card company under federal consumer protection laws. Ready to accept credit card payments without the complexity of surcharge compliance? Nickel offers transparent pricing and seamless payment processing for North Carolina businesses. Get started today and see how we simplify B2B payments.

North Carolina Credit Card Surcharge Laws

Q: What's the maximum surcharge businesses can charge in North Carolina?

Currently, businesses can charge up to the card networks' caps (3% for Visa, 4% for Mastercard), but the surcharge cannot exceed the merchant's actual processing costs. This means if you only pay 2.5% in processing fees, you cannot charge customers 4%.

North Carolina currently allows businesses to add surcharges to credit card transactions, following federal guidelines rather than imposing state-specific restrictions. Surcharging credit cards is legal in North Carolina. That said, there have been several attempts to regulate or ban surcharges over the years – including HB 209 in 2023 and HB 626 in 2011. Most recently, House Bill 13 (introduced January 2025) proposed disclosure requirements and penalties, but it stalled in the House Rules Committee in September 2025 and did not become law.

Unlike states with complex surcharge regulations, North Carolina has maintained a relatively straightforward approach that defers to federal law. This makes compliance simpler for businesses, though upcoming legislative changes could introduce new requirements for disclosure, pricing transparency, and operational restrictions.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Surcharge laws can change, and businesses should consult with an attorney before implementing surcharge programs.

Is Credit Card Surcharging Legal in North Carolina?

Yes, credit card surcharging is legal in North Carolina. The state does not have specific laws prohibiting merchants from adding surcharges to credit card transactions, which means businesses must follow federal regulations and card network rules.

As of the 2025–2026 legislative biennium, no state laws block credit card surcharging in North Carolina, but the practice has strict compliance requirements. Before processing a payment, MSPs must inform clients of additional fees and ensure surcharge details are clearly visible on invoices, at the point of sale, or online checkout pages.

No federal law caps surcharges in North Carolina — card network rules set the limits: up to 3% on Visa and 4% on Mastercard. The surcharge cannot exceed the merchant's actual cost of processing the credit card transaction and cannot be used as a profit center.

What's allowed in North Carolina

North Carolina businesses can currently implement these surcharge practices:

Add surcharges up to card network caps (3% for Visa, 4% for Mastercard)
Pass through actual processing costs to customers who choose credit card payments
Offer alternative payment methods like cash, check, or debit without surcharges
Display surcharge information at the point of sale, on websites, or in phone transactions
Apply surcharges to credit cards only - never to debit cards or prepaid cards

What's not allowed in North Carolina

Current federal regulations and card network rules prohibit these practices:

Surcharging debit cards - prohibited by card network rules in every state
Exceeding actual processing costs - surcharges cannot be used to generate profit
Surprise fees - customers must be informed of surcharges before completing transactions
Discriminatory pricing - cannot charge different surcharge rates for different credit card brands
Surcharging if only accepting credit cards - must offer alternative payment methods

Penalties for non-compliance in North Carolina

While North Carolina currently has no state-specific penalties for surcharge violations, businesses can face consequences through other channels:

Card network penalties - Visa, Mastercard, and other networks can fine merchants or terminate processing privileges
Federal regulatory action - violations of federal consumer protection laws
Customer disputes - chargebacks and complaints through credit card companies
Civil lawsuits - customers may pursue legal action for deceptive practices

House Bill 13 would have imposed civil penalties of up to $500 per offense, but the bill stalled and did not become law.

How Surcharging Laws in North Carolina Have Changed Over Time

North Carolina has a notable history of legislative attempts to restrict or regulate credit card surcharging, reflecting ongoing tension between business interests and consumer protection.

2011 - House Bill 626: The first major attempt to ban surcharging entirely. House Bill 626 (H626) was introduced in 2011 to prohibit credit card surcharges. The bill would have classified violations as unfair and deceptive trade practices and potential penalties would include fines and legal action. However, H626 did not pass and died in committee, leaving credit card surcharging legal in North Carolina under existing federal and card network regulations.

2023 - House Bill 209: House Bill 209 (HB626), titled the Consumer Credit Card Protection Act, was introduced in North Carolina in 2023. The bill aimed to prohibit businesses, state agencies, local governments, restaurants, and landlords from imposing extra charges on credit or debit card payments. The bill proposed civil penalties for violations, with fines of up to $2,500 for a first offense and $5,000 for subsequent violations. This bill also failed to pass.

2025 - House Bill 13: North Carolina House Bill 13 Charges for Credit, Charge, & Debit Cards was first introduced in January 2025. Unlike previous attempts that sought to ban surcharging entirely, it proposed regulation rather than prohibition — disclosure rules with an October 1, 2025 effective date. The bill stalled in the House Rules Committee in September 2025 and did not become law this biennium.

The 2025 bill represented a shift from outright prohibition to regulation, suggesting lawmakers recognize the business need for cost recovery while still protecting consumers through disclosure requirements.

Is Debit Card Surcharging Legal in North Carolina?

No — card network rules prohibit debit card surcharging in North Carolina and in all 50 states — even where credit surcharges are legal. This prohibition applies even when debit cards are processed as credit transactions.

MSPs should ensure their payment systems distinguish between credit and debit transactions to remain compliant. Businesses must have systems in place to identify debit cards and ensure surcharges are only applied to credit card transactions.

This prohibition comes from card network rules, which bar surcharges on debit and prepaid cards everywhere. (Debit interchange is separately capped under the federal Durbin Amendment — the economics behind the networks' rule.) Violating this rule can result in significant penalties from the card networks.