Wisconsin Credit Card Surcharge Laws

Quick Summary:

• Credit card surcharging is legal in Wisconsin with no state-specific restrictions
• Businesses must follow federal guidelines limiting surcharges to 4% (3% for Visa cards)
• Wisconsin government agencies charge convenience fees on credit card payments to state departments
• A 2013 bill to ban surcharging failed to pass, keeping Wisconsin pro-business on this issue
• Debit card surcharging remains prohibited under federal law

Wisconsin maintains a business-friendly stance on credit card surcharging, allowing companies to pass processing costs directly to customers who choose to pay with credit cards. The state has no specific laws restricting surcharging beyond federal requirements, making it straightforward for businesses to implement these programs. Wisconsin's approach mirrors many Midwest states that prioritize business flexibility while ensuring consumer protection through existing federal guidelines.

Legal Disclaimer: This information is for reference only and does not constitute legal advice. Credit card surcharge laws can change, and businesses should consult with an attorney before implementing surcharge programs.

Is Credit Card Surcharging Legal in Wisconsin?

Yes, credit card surcharging is completely legal in Wisconsin. The state has no laws prohibiting businesses from adding surcharge fees to credit card transactions, placing Wisconsin among the majority of states that allow this practice without state-level restrictions.

Wisconsin's permissive approach to surcharging is evident in how state government agencies handle credit card payments. The Wisconsin Department of Administration explains that credit and debit card payments cost the state significantly more than other payment methods - averaging $1.60 in processing fees for every $100 credit card payment compared to just $0.33 for paper checks. To offset these costs, many Wisconsin state agencies charge convenience fees when residents pay with credit cards.

The Wisconsin Department of Transportation also implements convenience fees for credit card payments under Wisconsin Statute 85.14, which specifically authorizes state agencies to charge fees that approximate their actual processing costs.

Since Wisconsin has no state restrictions, businesses must follow federal guidelines that cap surcharges at 4% of the transaction amount, though card networks like Visa limit surcharges to 3%.

What's Allowed

Wisconsin businesses can implement these surcharging practices:

• Surcharge up to 4% of the transaction amount (3% for Visa cards)
• Apply surcharges to all credit card types including business and consumer cards
• Charge for in-person, online, and phone transactions without different rules
• Use percentage-based surcharges calculated from the total transaction amount
• Implement surcharges without state disclosure requirements beyond card network rules

What's Not Allowed

Federal law and card network rules prohibit these practices in Wisconsin:

• Surcharging debit card transactions - illegal under federal law even when processed as credit
• Exceeding maximum surcharge rates - cannot charge more than 4% federally or 3% for Visa
• Using surcharges to generate profit - fees must only recover actual processing costs
• Flat-fee surcharges - must be percentage-based, not fixed dollar amounts
• Surcharging without card network notification - most networks require advance notice

Penalty For Non-Compliance

While Wisconsin has no state penalties for surcharge violations, businesses can face consequences from other sources:

• Card network fines ranging from $1,000 to $25,000 for violating brand rules
• Federal violations for exceeding the 4% surcharge cap
• Consumer complaints filed with the Wisconsin Department of Justice Consumer Protection division
• Civil lawsuits under Wisconsin consumer protection laws for deceptive practices

Wisconsin consumers can file complaints with the state's consumer protection agencies if they believe they've been unfairly charged, though the state's focus remains on ensuring businesses follow federal guidelines rather than imposing additional restrictions.

How Surcharging Laws in Wisconsin Have Changed Over Time

Wisconsin's current permissive stance on surcharging wasn't always guaranteed. In 2013, the Wisconsin Legislature considered Senate Bill 213, which would have prohibited merchants from imposing credit card surcharges in consumer credit transactions.

The proposed bill aimed to protect Wisconsin consumers from what sponsors saw as unfair fees, allowing businesses to offer cash discounts but prohibiting direct surcharges on credit card payments. Under the proposed law, merchants who violated the surcharge prohibition would have been liable to customers for $25 plus any actual damages.

Senate Bill 213 included specific provisions that would have made charges for third-party credit card guarantee services count as surcharges, even if paid directly to third parties. The bill also exempted government units from the prohibition, recognizing that state agencies needed flexibility to recover their processing costs.

The bill ultimately failed to pass, keeping Wisconsin aligned with the broader national trend toward allowing surcharging that emerged after the 2013 class action lawsuit against major card networks. This legislative history shows Wisconsin lawmakers considered consumer protection concerns but ultimately decided that federal guidelines and market forces provided sufficient oversight.

Since 2013, Wisconsin has maintained its business-friendly approach to surcharging, with no subsequent attempts to restrict the practice through state legislation.

Wisconsin Credit Card Surcharge FAQs

Does Wisconsin require businesses to post signs about credit card surcharges?

Wisconsin has no state-specific signage requirements for surcharges, but businesses must follow federal guidelines and card network rules. Most card networks require clear disclosure of surcharge policies before customers complete transactions, and many businesses post signs to avoid disputes.

Can Wisconsin restaurants add automatic service charges to credit card bills?

Yes, restaurants can add service charges to credit card transactions as long as they don't exceed the 4% federal limit and are clearly disclosed to customers. Many Wisconsin restaurants use this approach to offset processing costs without calling them "surcharges."

Are there any Wisconsin industries that face special surcharge restrictions?

No, Wisconsin treats all industries equally when it comes to surcharging. However, businesses in regulated industries should check with their licensing boards to ensure surcharging doesn't conflict with other professional rules or ethical guidelines.

What should Wisconsin businesses know about implementing surcharge programs?

Wisconsin businesses should focus on federal compliance and card network rules since the state imposes no additional requirements. Key steps include notifying card networks in advance, ensuring surcharges don't exceed processing costs, and providing clear disclosure to customers before transactions.

Can Wisconsin government agencies charge convenience fees on credit card payments?

Yes, Wisconsin state agencies routinely charge convenience fees to offset their processing costs. The Wisconsin Department of Administration notes that credit card processing is significantly more expensive than other payment methods, justifying these fees to protect taxpayer funds from unnecessary processing expenses.