South Carolina Credit Card Surcharge Laws

Credit card surcharging is legal in South Carolina. The state has never enacted a surcharge statute — a 2013 bill that would have banned the practice died in committee — so card network rules are the only regulations that apply. That leaves Palmetto State businesses free to pass credit card processing costs to customers who choose to pay with plastic.

This permissive environment provides significant opportunities for South Carolina's physical economy businesses, including contractors, wholesale distributors, and manufacturers who handle large invoice-based payments. With credit card processing fees ranging from 2.5% to 4%, the ability to recover these costs can meaningfully impact profit margins for businesses operating on thin spreads.

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 South Carolina?

Yes, credit card surcharging is legal in South Carolina because no state law restricts it. South Carolina has never enacted a surcharge statute — the Section 39-1-100 sometimes cited as the state's surcharge law appeared only in a 2013 bill that died in committee and was never enacted. Merchants instead follow the card networks' surcharge rules.

In practice, businesses can add a disclosed surcharge to credit card transactions under card network rules, or display their credit card prices as the standard rate while offering discounts for cash, check, or other payment methods. South Carolina imposes no state-specific restrictions on surcharge amounts or disclosure requirements.

What's allowed in South Carolina

South Carolina businesses can legally implement these surcharge practices:

• Add surcharges up to card network caps (3% for Visa, 4% for Mastercard)
• Offer cash discounts as an alternative way to implement differential pricing
• Charge different rates for different card types based on actual processing costs
• Apply surcharges to all credit card transactions including in-person, online, and phone payments
• Follow standard disclosure practices required by card networks
• Use percentage-based or flat fee structures as long as they don't exceed processing costs

What's not allowed in South Carolina

Card network rules and consumer protection laws prohibit these practices:

• Surcharging debit cards - prohibited nationwide even when processed as credit
• Exceeding card network caps or actual processing costs for each card type
• Using surcharges to generate profit - fees must only recover processing costs
• Surcharging prepaid cards or gift card transactions
• Failing to provide proper disclosure as required by card network rules
• Misleading customers about surcharge amounts or payment options

Penalties for non-compliance in South Carolina

Because South Carolina has no surcharge statute, enforcement runs through general consumer protection channels and the card networks:

• Consumer complaints filed with the South Carolina Department of Consumer Affairs
• Federal enforcement under truth-in-advertising and consumer protection regulations
• Card network penalties including fines ranging from $1,000 to $25,000 for repeat violations
• Civil enforcement under South Carolina's Unfair Trade Practices Act
• Private lawsuits by consumers for deceptive business practices

The South Carolina Department of Consumer Affairs actively investigates consumer complaints and has authority to take administrative action, issue orders, or refer matters for criminal prosecution when businesses engage in unfair trade practices.

The History of Surcharge Legislation in South Carolina

South Carolina has never regulated credit card surcharges at the state level. The General Assembly has never enacted a surcharge statute — no ban, no cap, no disclosure requirement — so the practice has always been governed by card network rules rather than state law.

The only legislative activity on surcharging came in 2013, shortly after the federal court settlement that lifted the card networks' restrictions on merchants passing credit card costs to customers. As surcharging spread nationally, some South Carolina lawmakers moved to ban it.

House Bill 3477, introduced in the 2013-2014 session, would have added a new Section 39-1-100 to the Code of Laws of South Carolina, 1976 — the formal name of the state's code, and the likely reason this proposal is sometimes misread as a 1976 ban. The bill would have prohibited credit card surcharges while still allowing cash discounts and minimum purchase requirements, but it never advanced beyond the House Committee on Labor, Commerce and Industry. Section 39-1-100 was never enacted, and surcharging remained legal.

The practical result is that South Carolina has no surcharge law on the books. Merchants who want to add surcharges simply follow card network rules, which puts the state in line with the majority of states that allow surcharging.