Virginia Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is currently legal in Virginia with upcoming disclosure requirements
• Senate Bill 1212 requires upfront disclosure of mandatory fees starting July 1, 2025
• HB 1519 could ban surcharges entirely if reenacted in 2025 (currently under review)
• Violations carry penalties up to $2,500-$5,000 per violation under Virginia Consumer Protection Act
• Debit card surcharges remain prohibited under federal law

Virginia finds itself at a regulatory crossroads regarding credit card surcharges. While surcharging remains legal today, significant changes are on the horizon that will reshape how businesses can implement processing fees. The state has enacted new transparency requirements effective July 2025, while simultaneously considering a complete ban on surcharges that could take effect later in 2025.

This evolving landscape creates both opportunities and challenges for contractors, wholesale distributors, and accountants who rely on credit card payments for large invoice-based transactions. Understanding Virginia's current rules and preparing for upcoming changes will be essential for businesses that want to continue recovering processing costs while maintaining compliance with state consumer protection laws.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Virginia's surcharge laws are actively changing through 2025. Consult with an attorney before implementing or modifying surcharge programs.

Is Credit Card Surcharging Legal in Virginia?

Yes, credit card surcharging is currently legal in Virginia, but significant changes are coming in 2025. Businesses can implement surcharges today while preparing for new disclosure requirements and a potential complete prohibition.

The current legal status reflects Virginia's traditionally business-friendly approach to payment processing fees. However, recent legislative activity shows the state moving toward greater consumer protection, aligning with national trends toward fee transparency and elimination of surprise charges.

What's Allowed (Current and July 2025)

Virginia businesses can currently implement these surcharge practices:

• Credit card surcharges up to federal and card network limits (typically 3-4%)
• Percentage or flat fee structures based on business needs
• Multiple payment method pricing with different rates
• Cash discount programs as alternatives to surcharging

Starting July 1, 2025, Senate Bill 1212 requires businesses to:

• Display total prices including all mandatory fees in advertisements
• Clearly and conspicuously disclose surcharges before transactions
• Include surcharges in advertised pricing if customers cannot reasonably avoid them
• Provide upfront disclosure rather than revealing fees only at checkout

What's Not Allowed

Virginia prohibits these practices under current and upcoming law:

• Debit card surcharges - prohibited under federal law
• Hidden or undisclosed surcharges - violation of consumer protection standards
• Misleading fee descriptions - surcharges must be accurately labeled
• Surprise charges - fees revealed only at point of sale (especially after July 2025)

Potential Future Prohibition: HB 1519 could ban all surcharges if the Virginia General Assembly reenacts it in 2025, following review by the Virginia State Corporation Commission.

Penalty For Non-Compliance

Virginia enforces surcharge violations through its comprehensive consumer protection framework. The Virginia Consumer Protection Act provides multiple enforcement mechanisms:

Current Penalties:

• Civil penalties up to $5,000 per violation for willful violations
• Actual damages or $500 (whichever is greater) for consumer injuries
• Treble damages (up to 3x actual damages or $1,000) for willful violations
• Attorney fees and costs for successful consumer actions

Starting July 1, 2025 (Senate Bill 1212):

• Civil penalties up to $2,500 per violation
• Enhanced penalties up to $5,000 for subsequent violations
• Private right of action allowing consumers to recover damages or $500
• Restitution orders to restore consumer losses

Consumers can file complaints with the Virginia Attorney General's office at 1-800-552-9963 or through their online complaint system to report misleading surcharge practices.

How Surcharging Laws in Virginia Have Changed Over Time

Virginia's approach to surcharging has evolved rapidly, reflecting broader national debates about payment processing costs and consumer protection. Historically, Virginia imposed no state-specific restrictions on surcharges, allowing businesses to follow federal guidelines and card network requirements.

The significant shift began in 2024 when the Virginia General Assembly passed HB 1519, which would prohibit surcharges on electronic payments entirely. However, this bill includes a reenactment clause, meaning it will only take effect if lawmakers vote to enact it again in 2025 after receiving a review from the Virginia State Corporation Commission.

Meanwhile, Virginia enacted Senate Bill 1212 in May 2025, taking a different approach by requiring disclosure of mandatory fees rather than banning them outright. This law reflects a compromise position that allows surcharges while protecting consumers from surprise charges.

The dual-track approach creates uncertainty for businesses, as Virginia could either strengthen disclosure requirements while maintaining surcharge legality, or ban surcharges completely, depending on the General Assembly's 2025 decision on HB 1519.

Types of Businesses That Must Follow Virginia's Surcharge Laws

Virginia's consumer protection requirements apply broadly to all businesses engaged in consumer transactions within the state. The Virginia Consumer Protection Act covers any business selling goods or services primarily for personal, family, or household purposes.

This includes:

• Contractors and construction companies processing project payments
• Wholesale distributors selling to smaller businesses
• Professional service providers including accountants, consultants, and attorneys
• Retail businesses accepting customer credit cards
• Online merchants selling to Virginia residents
• Healthcare providers processing patient payments
• Restaurants and hospitality businesses

Important Exemptions under Senate Bill 1212 include:

• Motor vehicle dealers (for certain fees)
• Electric utilities, natural gas utilities, and telecommunications providers
• Real estate settlement services
• Air transportation services

These exemptions reflect existing regulatory frameworks that already govern pricing disclosure in these industries.

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Virginia Credit Card Surcharge FAQs

What should Virginia businesses do to prepare for the July 2025 disclosure requirements?

Businesses should review their current surcharge practices and ensure they can clearly display total prices including fees in all advertising. This may require updating websites, printed materials, and point-of-sale systems to show "all-in" pricing rather than base prices plus surcharges.

How will HB 1519's potential reenactment affect businesses currently using surcharges?

If the Virginia General Assembly reenacts HB 1519 in 2025, businesses would need to eliminate surcharges entirely and absorb processing costs or find alternative fee structures. Companies should develop contingency plans for both scenarios.

Can Virginia contractors and distributors continue using surcharges for large B2B payments?

Current Virginia law allows surcharges on B2B transactions, but businesses must prepare for enhanced disclosure requirements. The potential ban under HB 1519 would apply to all consumer transactions, which could include B2B sales depending on the final interpretation.

What's the difference between surcharges and cash discounts under Virginia's new requirements?

Cash discounts reduce prices for non-card payments and may face less restrictive disclosure requirements since customers pay less than advertised prices. However, businesses should ensure any discount programs comply with the "clearly and conspicuously" disclosure standards.

How should Virginia businesses handle the uncertainty about HB 1519's reenactment?

Businesses should monitor legislative developments closely and consider implementing dual pricing strategies that work under both scenarios. Consulting with payment processing providers about flexible fee structures can help businesses adapt quickly to regulatory changes.

What enforcement priorities does the Virginia Attorney General's office have for surcharge violations?

Virginia's Consumer Protection Section focuses on patterns of deceptive conduct rather than isolated violations. Businesses that clearly disclose surcharges and avoid misleading practices are less likely to face enforcement action, while those that hide fees or misrepresent charges face greater scrutiny.

How do Virginia's changes compare to other states' surcharge regulations?

Virginia's approach reflects a national trend toward fee transparency, similar to California's SB 478 and Minnesota's new disclosure requirements. However, Virginia's potential complete ban would align it with states like Connecticut and Massachusetts that prohibit surcharges entirely.