Utah Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Utah with proper disclosure requirements
• Utah briefly banned surcharges in 2013 but the law expired in 2014
• Businesses must notify customers before checkout about surcharges and fees
• Debit card surcharging is prohibited under federal law
• Utah Division of Consumer Protection enforces anti-deception rules for surcharge practices

Utah presents a straightforward approach to credit card surcharging compared to many other states. After a brief one-year experiment with prohibiting surcharges, Utah lawmakers allowed the restriction to expire and haven't imposed new state-specific limitations since 2014. This means businesses throughout Utah can legally add credit card processing fees to customer transactions, provided they follow federal guidelines, card network rules, and Utah's consumer protection requirements for transparent pricing.

For contractors, wholesale distributors, and accountants managing large invoice-based payments, Utah's permissive surcharge environment offers flexibility in recovering processing costs. The key requirement is clear, upfront disclosure to customers about any additional fees before they complete their purchase. Utah's Division of Consumer Protection maintains oversight to prevent deceptive practices while allowing businesses to pass along legitimate processing expenses.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Business practices and consumer protection laws can change. Consult with an attorney before implementing surcharge programs.

Is Credit Card Surcharging Legal in Utah?

Yes, credit card surcharging is legal in Utah. Businesses can add fees to credit card transactions as long as they provide clear disclosure to customers and comply with federal regulations and card network rules.

Utah takes a hands-off approach to surcharge regulation, focusing instead on preventing deceptive business practices. The Utah Division of Consumer Protection requires businesses to inform customers exactly how much they'll pay for goods or services, including any surcharges or fees, before completing a purchase.

Unlike states with specific surcharge caps or detailed notification requirements, Utah defaults to federal guidelines that limit surcharges to 4% of the transaction amount, though card network rules effectively cap most surcharges at 3%.

What's Allowed

Utah businesses can implement these surcharge practices:

• Credit card surcharges up to federal and card network limits (typically 3-4%)
• Clear fee disclosure before payment completion
• Percentage or flat fee structures that don't exceed processing costs
• Multiple payment method pricing with different rates for cards vs. cash
• Proper surcharge labeling that accurately describes the fee's purpose

Utah's permissive approach means businesses have flexibility in how they structure and present surcharges, as long as customers receive clear information before paying.

What's Not Allowed

Utah's consumer protection laws prohibit these deceptive surcharge practices:

• Undisclosed surcharges - adding fees without notifying customers first
• Misleading fee descriptions - calling fees "credit card processing" when they exceed actual costs
• Debit card surcharges - prohibited under federal law for all debit and prepaid cards
• Excessive surcharges - fees that substantially exceed processing costs
• After-the-fact notifications - showing surcharges only on receipts after payment

The Utah Division of Consumer Protection emphasizes that "notification to the consumer after the fact (like a line item on a receipt) is not sufficient" to comply with disclosure requirements.

Penalty For Non-Compliance

Utah enforces surcharge violations through its general consumer protection framework rather than specific surcharge penalties. The Utah Consumer Sales Practices Act allows civil penalties up to $10,000 per violation for deceptive business practices.

The Utah Division of Consumer Protection has broad enforcement authority, including the power to:

• Initiate investigations into deceptive surcharge practices
• Issue cease-and-desist orders to stop improper surcharging
• Subpoena records related to fee structures and disclosures
• Coordinate with the Utah Attorney General for civil litigation

Consumers can file complaints with the Utah Division of Consumer Protection at (801) 530-6601 or through their online complaint system to report businesses that impose undisclosed surcharges or engage in misleading fee practices.

How Surcharging Laws in Utah Have Changed Over Time

Utah's surcharge history demonstrates how state policy can evolve based on practical experience and changing business needs. The state initially took no position on surcharging until 2013, when lawmakers passed Senate Bill 67 prohibiting sellers from imposing surcharges on credit card transactions of $10,000 or less.

This 2013 law made Utah one of only a handful of states restricting surcharges at the time. However, legislators built in a sunset provision that automatically repealed the surcharge ban on June 30, 2014, unless lawmakers chose to extend it.

When the sunset date arrived in July 2014, Utah legislators opted not to renew the surcharge prohibition. The ban expired automatically, and credit card surcharging became legal again throughout Utah with no additional state-imposed restrictions beyond existing federal and card network regulations.

Since 2014, Utah hasn't enacted any new surcharge-specific legislation, instead relying on general consumer protection laws to prevent deceptive practices while allowing businesses flexibility in fee structures.

Is Debit Card Surcharging Legal in Utah?

No, debit card surcharging is illegal in Utah. This prohibition applies nationwide under federal law, regardless of individual state policies on credit card surcharges.

The Durbin Amendment to the Dodd-Frank Act prohibits surcharges on all debit card transactions, including when debit cards are processed as "credit" transactions. This federal restriction overrides any state-level surcharge permissions and applies in all 50 states.

Utah businesses can offer cash discounts or implement dual pricing that shows different rates for various payment methods, but they cannot add specific fees to debit card transactions.

Types of Businesses That Must Follow Utah's Surcharge Laws

Utah's consumer protection requirements apply to virtually all businesses operating in the state or serving Utah residents. The Utah Consumer Protection Act covers "businesses engaged in trade or commerce, including retailers, service providers, and online merchants targeting Utah residents."

This broad definition includes:

• Contractors and construction companies handling large project payments
• Wholesale distributors processing supplier transactions
• Retail businesses accepting customer credit cards
• Professional service providers like accountants and consultants
• Online merchants selling to Utah residents
• Restaurants and hospitality businesses processing guest payments

Out-of-state businesses selling to Utah consumers must also comply with Utah's disclosure requirements, as the Division of Consumer Protection has jurisdiction over any entity conducting business affecting state residents.

Certain industries face exemptions from general consumer protection laws, including banks, credit unions, insurance companies, and licensed professionals like attorneys and doctors, as these sectors have specialized regulatory oversight.

Utah Credit Card Surcharge FAQs

Do Utah businesses need to notify customers about credit card surcharges before they pay?

Yes, Utah requires clear and conspicuous notification before payment completion. Simply showing surcharges on receipts after payment is insufficient. Businesses must inform customers about surcharge amounts and purposes before accepting payment.

What's the maximum surcharge Utah businesses can charge on credit cards?

Utah doesn't impose state-specific caps, so businesses default to federal limits of 4% and card network restrictions (typically 3% for Visa). However, surcharges cannot exceed the business's actual processing costs for the transaction.

Can Utah contractors and wholesale distributors pass credit card fees to customers on large invoices?

Yes, Utah's permissive surcharge environment allows businesses handling large B2B payments to recover processing costs through surcharges. This can be particularly valuable for contractors and distributors processing thousands or tens of thousands of dollars in credit card payments monthly.

How should Utah businesses describe surcharges to avoid consumer protection violations?

Surcharges must be accurately labeled. Businesses cannot call fees "credit card processing charges" unless the fees actually correspond to processing costs. Misleading descriptions like "convenience fees" for standard credit card acceptance may violate Utah's anti-deception rules.

What happens if a Utah business violates surcharge disclosure requirements?

The Utah Division of Consumer Protection can investigate deceptive practices and coordinate with the Attorney General's office for enforcement action. Penalties under the Utah Consumer Sales Practices Act can reach $10,000 per violation for businesses that knowingly mislead customers about surcharges.

Can Utah bookkeepers and accountants add surcharges when processing payments for multiple clients?

Yes, accounting professionals can implement surcharges on client payments. However, they must provide clear disclosure about fees and ensure surcharges don't exceed actual processing costs. Many accounting firms use this approach to maintain margins while offering clients flexible payment options.