What do Virginia's July 2025 disclosure requirements mean for businesses?

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.

What happened to HB 1519, the proposed ban on surcharges?

It didn't happen: the General Assembly did not reenact HB 1519 in 2025, so the proposed surcharge ban never took effect. Surcharging remains legal in Virginia, subject to the total-price advertising rules in effect since July 2025.

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

Yes. Virginia law allows surcharges on B2B transactions, subject to the total-price disclosure rules in effect since July 1, 2025. HB 1519's proposed ban was not reenacted in 2025 and never took effect, so there is no pending ban to prepare for.

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.

Do Virginia businesses still need to worry about HB 1519?

No. The General Assembly did not reenact HB 1519 in 2025, so the proposed ban is dead and surcharging remains legal in Virginia. The rule to focus on instead is Senate Bill 1212: since July 1, 2025, advertised prices must include all mandatory fees. Make sure your pricing displays comply — there is no ban to plan around.

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. HB 1519's proposed complete ban would have aligned Virginia with states like Connecticut and Massachusetts that prohibit surcharges entirely, but it was not reenacted in 2025 and never took effect.

Virginia Credit Card Surcharge Laws

Virginia settled a period of regulatory uncertainty around credit card surcharges in 2025. Surcharging remains legal, but the state enacted new transparency requirements effective July 2025 — advertised prices must include mandatory fees — while a proposed complete ban (HB 1519) died when the General Assembly declined to reenact it.

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 rules last changed in July 2025. Consult with an attorney before implementing or modifying surcharge programs.

Is Credit Card Surcharging Legal in Virginia?

Yes, credit card surcharging is legal in Virginia. Since July 1, 2025, businesses that surcharge must include mandatory fees in their advertised prices under Senate Bill 1212; a proposed complete prohibition (HB 1519) was not reenacted and never took effect.

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

Virginia businesses can currently implement these surcharge practices:

Credit card surcharges up to card network caps (3% for Visa, 4% for Mastercard)
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 in Virginia

Virginia prohibits these practices under current and upcoming law:

Debit or prepaid card surcharges - prohibited by card network rules in every state
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 (prohibited under the total-price rule in effect since July 2025)

The Prohibition That Didn't Happen: HB 1519 (2024) would have banned all surcharges, but the General Assembly did not reenact it in 2025 after the State Corporation Commission review, so it never became law.

Penalties for non-compliance in Virginia

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, the bill included a reenactment clause — it would only take effect if lawmakers enacted it again in 2025 after a Virginia State Corporation Commission review. They didn't: HB 1519 was not reenacted, and the ban never took effect.

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 total-price rule lives at Va. Code §§ 59.1-607 and 59.1-608. Because it defines "mandatory" as fees that must be paid to purchase the item, an avoidable card surcharge — where cash, check, or ACH is accepted — needs ordinary before-payment disclosure but does not have to be baked into the advertised price.

The 2025 session resolved the dual track: the General Assembly kept surcharges legal under SB 1212's disclosure regime and let HB 1519's ban die.

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.