Ohio Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Ohio with minimal state restrictions
• Ohio has some of the most lenient surcharge laws in the country
• Businesses can impose minimum purchase amounts on credit cards (no state limit)
• Debit card surcharging remains prohibited under federal law
• State entities must disclose surcharges, but private businesses have more flexibility

Ohio maintains one of the most business-friendly approaches to credit card surcharging in the United States. The state imposes virtually no restrictions beyond federal requirements, giving merchants maximum flexibility to recover processing costs. Unlike many states with complex disclosure requirements or percentage caps, Ohio businesses can focus primarily on card network compliance rather than navigating state-level bureaucracy.

Ohio actually has some of the most lenient surcharge laws in the country. If you compare these laws to other states where surcharging is legal, Ohio doesn't even require businesses to clearly post written notice of the surcharge on credit card transactions. This regulatory simplicity makes Ohio particularly attractive for businesses looking to implement surcharge programs without extensive compliance overhead.

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.

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Is Credit Card Surcharging Legal in Ohio?

Yes, credit card surcharging is completely legal in Ohio. Ohio does not have any laws that prohibit merchants from imposing a surcharge on credit card transactions. Furthermore, no Ohio laws prohibit businesses from imposing minimum purchase amounts on credit cards.

The state follows federal guidelines, allowing businesses to charge up to 4% of the transaction amount (effectively 3% due to Visa's network rules) as long as the surcharge doesn't exceed the merchant's actual processing costs.

Ohio's regulatory approach emphasizes business flexibility while relying on federal consumer protections and card network rules to prevent abuse. This makes compliance straightforward for most businesses.

What's Allowed

Ohio businesses enjoy broad flexibility in implementing surcharge practices:

• Add surcharges up to federal limits - 4% maximum (3% for Visa transactions)
• Set minimum purchase amounts - no state restrictions on credit card minimums
• Flexible disclosure methods - while card networks require disclosure, Ohio doesn't mandate specific formats
• Apply to all business types - retail, professional services, restaurants, and online businesses
• Combine with other pricing strategies - cash discounts, tiered pricing, and convenience fees

What's Not Allowed

Federal regulations and card network rules still restrict these practices in Ohio:

• Surcharging debit cards - illegal in all 50 states under federal law
• Exceeding actual processing costs - surcharges cannot generate profit beyond cost recovery
• Hidden or surprise fees - customers must be informed before completing transactions
• Inconsistent application - card network rules require uniform surcharge rates across brands
• Processing prepaid cards as surchargeable - these are treated as debit cards under federal law

Penalty For Non-Compliance

While Ohio has minimal state-specific penalties, businesses face consequences through federal and industry channels:

• Card network penalties - These penalties can range from $50,000 to $1 million, and you could even lose your right to accept Visa cards
• Federal consumer protection violations - FTC enforcement for deceptive practices
• Customer chargebacks - disputed transactions through credit card companies
• Civil lawsuits - customers may pursue legal action for improper surcharging practices

Card network enforcement has become increasingly aggressive, with secret shopping programs to catch non-compliant merchants.

Surcharging vs. Cash Discounts in Ohio

Ohio businesses can choose between two primary approaches to offset credit card processing costs: surcharging and cash discounts. Understanding the difference is important for compliance and customer relations.

Surcharging involves adding a fee to credit card transactions, typically displayed as a separate line item. Ohio allows this practice with minimal restrictions, though card networks require proper disclosure and notification procedures.

Cash Discounts provide reduced pricing for customers who pay with cash, check, or debit cards. This approach is often viewed more favorably by customers and faces fewer regulatory restrictions. Convenience fees, service fees, and surcharge fees are all legal in the state of Ohio.

Convenience Fees can be applied to any payment method for non-standard transaction environments. Under Ohio state law, however, convenience fees are legal on transactions, regardless of the type of card you're using (if you're even using a card). For example, utility companies often charge convenience fees for online or phone payments when they typically accept payment by mail.

The choice between these approaches often depends on customer psychology, operational complexity, and specific business needs.

Is Debit Card Surcharging Legal in Ohio?

No, debit card surcharging is illegal in Ohio and throughout the United States under federal law. Federal law makes surcharge fees illegal on debit card transactions. That's even if the debit card payment is processed like a credit card transaction without requiring you to enter your pin.

It's 100% illegal to surcharge debit card transactions and prepaid cards in Ohio. This federal prohibition applies regardless of how the debit card is processed - whether with a PIN or as a credit transaction.

However, Ohio does allow convenience fees on debit transactions in certain circumstances. A convenience fee is a percentage or flat fee added on to your sale for being able to use a nonstandard method of payment. This means that, in most cases in Ohio, you cannot be charged a fee for using your debit card in person at a business.

Exception for State Entities: There is an exception for state entities, though, under Ohio law. This exception allows places like the Bureau of Motor Vehicles to charge a fee for accepting payments using financial transaction devices, which are used to take credit and debit cards.

Types of Businesses That Must Follow Ohio's Surcharge Laws

All businesses accepting credit cards in Ohio must comply with federal surcharge regulations, though the state imposes minimal additional requirements:

Private Businesses - Retail stores, restaurants, professional services, and online businesses can implement surcharges with basic card network compliance. Ohio doesn't require specific state notification or licensing.

State Entities - Government offices have special rules under Section 113.40 of Ohio House Bill 33. Any notice of a surcharge must be stated for financial transactions related to state expenses like taxes, assessments, fines, and fees owed to state officials.

Professional Services - Law firms, medical practices, and consulting businesses can add surcharges but should check professional ethics rules and bar association guidance for any additional restrictions.

Restaurants and Hospitality - Food service and lodging businesses can implement surcharges with standard disclosure practices, making Ohio more flexible than states with restaurant-specific restrictions.

Online and Remote Businesses - E-commerce sites and service providers must display surcharge information clearly but benefit from Ohio's lack of specific state disclosure requirements.

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Ohio Credit Card Surcharge FAQs

Does Ohio require businesses to post signs about credit card surcharges?

No, Ohio doesn't require specific signage or disclosure formats for private businesses. Section 113.40 of Ohio House Bill 33 does say that any notice of a surcharge must be stated for financial transactions related to state expenses, but this language doesn't appear in other Ohio state laws for other businesses. However, card networks like Visa and Mastercard typically require written disclosure, so most businesses should still post clear surcharge information.

Can Ohio restaurants automatically add gratuities or service charges?

Yes, restaurants can add automatic gratuities and service charges. Since Ohio allows convenience fees regardless of payment method, restaurants have significant flexibility in their fee structures as long as they're clearly disclosed to customers.

What's the maximum credit card minimum purchase amount in Ohio?

Ohio has no state restrictions on minimum purchase amounts for credit cards. Businesses can set any minimum they choose, though card network agreements may impose limits (typically around $10 for most networks).

How do Ohio's surcharge laws compare to neighboring states?

Ohio has some of the most lenient surcharge laws compared to neighboring states. While states like Illinois have specific disclosure requirements and Pennsylvania requires clear customer notification, Ohio imposes minimal state-level restrictions beyond federal compliance.

Where can consumers file complaints about improper surcharges in Ohio?

If you suspect a business is illegally surcharging credit or debit card transactions in Ohio, you can file a complaint directly to the Ohio Attorney General's office or call their consumer hotline at (800) 282-0515.

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