Pennsylvania Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Pennsylvania
• No state-specific restrictions beyond federal regulations
• Surcharges cannot exceed 4% of transaction amount or actual processing cost
• Must provide clear disclosure to customers before transaction
• Debit card surcharging is prohibited
• Must appear as separate line item on receipts

Credit card surcharging is legal in Pennsylvania, making it one of the majority of states that allow businesses to pass processing fees to customers who choose to pay with credit cards. While Pennsylvania doesn't impose additional state-specific restrictions, businesses must still comply with federal regulations and card network rules from Visa, Mastercard, and American Express.

This creates opportunities for small and medium-sized businesses, particularly those in the physical economy like contractors, wholesalers, and distributors, to recover the costs associated with credit card acceptance while maintaining competitive pricing for customers who pay with cash or checks.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Consult with an attorney before implementing surcharge programs, as regulations can change and individual circumstances may vary.

Is Credit Card Surcharging Legal in Pennsylvania?

Yes, credit card surcharging is legal in Pennsylvania. The state follows federal guidelines and does not impose additional restrictions beyond what's required at the national level. This means Pennsylvania businesses can implement surcharge programs as long as they comply with federal regulations and card network policies.

Pennsylvania's approach differs from states like Connecticut, Maine, and Massachusetts that explicitly prohibit surcharging, and from states like California that require all fees to be included in advertised prices. Instead, Pennsylvania allows the traditional surcharge model where businesses can add fees at the point of sale with proper disclosure.

What's Allowed

Pennsylvania businesses can legally implement these surcharge practices:

• Add surcharges up to 4% of transaction amount (3% for Visa cards) or actual processing cost, whichever is lower
• Charge different rates for different card types as long as they don't exceed processing costs for each card
• Display surcharge notices at store entrances, point of sale, and on websites
• Include surcharge as separate line item on receipts and invoices
• Apply surcharges to all credit card transactions including in-person, online, and phone payments
• Offer cash discounts as an alternative to surcharging

What's Not Allowed

Pennsylvania law and federal regulations prohibit these practices:

• Surcharging debit cards - even when processed as credit transactions
• Exceeding actual processing costs - cannot use surcharges to generate profit
• Charging more than 4% of transaction amount (3% for Visa)
• Failing to disclose surcharges before customers complete their purchase
• Applying surcharges to prepaid cards or gift card transactions
• Misleading customers about the nature or amount of surcharge fees

Penalty For Non-Compliance

While Pennsylvania doesn't have specific state penalties for surcharge violations, businesses face enforcement through multiple channels:

• Federal enforcement under truth-in-advertising regulations
• Card network penalties including potential loss of processing privileges
• Consumer complaints filed with the Pennsylvania Attorney General's Bureau of Consumer Protection
• Private lawsuits under Pennsylvania's Unfair Trade Practices and Consumer Protection Law

Violations of Pennsylvania's consumer protection laws can result in civil penalties up to $1,000 per violation under the Unfair Trade Practices and Consumer Protection Law, with additional penalties for cases involving elderly consumers.

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Pennsylvania Credit Card Surcharge FAQs

Can Pennsylvania restaurants add surcharges to credit card payments?

Yes, Pennsylvania restaurants can add credit card surcharges following the same rules as other businesses. Unlike California which has special restaurant exemptions, Pennsylvania applies standard surcharge rules to all business types including restaurants, requiring clear disclosure and limiting fees to processing costs.

Do Pennsylvania contractors need special permits to surcharge credit cards?

No special permits are required for credit card surcharging in Pennsylvania. Contractors can implement surcharge programs like any other business, though they must still follow standard disclosure requirements and ensure fees don't exceed actual processing costs. This is particularly beneficial for contractors who often handle large invoice-based payments.

How do Pennsylvania surcharge laws compare to neighboring states?

Pennsylvania allows surcharging while some neighbors don't. New York restricts surcharges to processing costs only and requires displaying total prices including fees. New Jersey also limits surcharges to actual processing costs. West Virginia, Ohio, and Delaware allow surcharging with standard federal restrictions, making Pennsylvania's rules fairly typical for the region.

Can Pennsylvania wholesale distributors pass credit card fees to business customers?

Yes, Pennsylvania wholesale distributors can surcharge B2B credit card transactions under the same rules as consumer transactions. This is especially valuable for distributors handling large invoice payments where even a 2.9% credit card fee can significantly impact margins on wholesale pricing.

What should Pennsylvania businesses do if customers complain about surcharges?

Businesses should document their compliance with disclosure requirements and ensure surcharges don't exceed processing costs. Customer complaints can be filed with the Pennsylvania Attorney General's Bureau of Consumer Protection, so maintaining clear policies and proper documentation is important for defending against potential investigations.

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