10/29/2026
💳 ARIZONA BUSINESS OWNERS: ARE YOUR CREDIT CARD SURCHARGES LEGAL?
With so many businesses starting to charge customers extra for using plastic, it's time to understand what is legal, what isn't, and why it matters!
YES, Arizona generally allows credit card surcharges. However, that does NOT mean a business can charge whatever it wants or add fees to every card transaction.
✅ WHAT'S ALLOWED IN ARIZONA:
✔️ Charging an appropriate surcharge on eligible CREDIT CARD purchases.
✔️ Recovering the actual cost of accepting credit cards, within card network limits.
✔️ Offering customers a properly advertised discount for paying cash.
✔️ Clearly disclosing applicable surcharges before customers pay.
🚫 WHAT'S NOT ALLOWED UNDER CARD NETWORK RULES:
❌ Charging a surcharge on DEBIT or PREPAID cards, even when the debit card is processed as "credit."
❌ Charging more than the actual applicable processing cost or the card network's maximum.
❌ Automatically adding 3%, 4%, or 5% to every card transaction without determining whether that amount is permitted.
❌ Hiding the surcharge until the customer receives the bill.
❌ Disguising a credit card surcharge as a "convenience fee" to get around the rules.
❌ Failing to follow the required notification, disclosure, and receipt rules.
⚠️ HERE'S SOMETHING MANY ARIZONA BUSINESSES DON'T REALIZE!
Visa generally limits surcharges to 3% or the merchant's applicable cost of acceptance, whichever is lower. Mastercard has a 4% ceiling, also limited by actual applicable acceptance costs. Other card network and merchant agreement requirements may further restrict what can be charged.
Merchants generally must notify their payment processor at least 30 days before beginning surcharging.
CASH DISCOUNTS ARE DIFFERENT!
A legitimate cash discount reduces a properly advertised regular price. Simply adding a fee to the advertised price when someone uses a card doesn't automatically become a legal cash discount because you call it one.
📢 CUSTOMERS: KNOW YOUR RIGHTS!
If you believe a business is charging an improper fee:
Keep your itemized receipt.
Take a picture of any posted surcharge notice or advertised price.
Contact your card issuer or the card network to report a possible rule violation.
Report potentially deceptive pricing practices to the Arizona Attorney General's Consumer Information and Complaints Unit.
BUSINESS OWNERS: KNOW YOUR RESPONSIBILITIES!
Processing fees are part of operating a business. Choosing to pass those costs along comes with responsibilities.
A surcharge may be legal in Arizona, while the way a business applies it may still violate its merchant agreement or card network rules.
Being a responsible business owner means understanding the rules, respecting your customers, and doing business the right way!
