Check whether your state bars or caps a surcharge, keep any cash discount separate and disclosed, and limit card digits printed on payment slips.
Card surcharge rules: the short answer before you ring a sale
A seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means, according to the Maine Legislature. This rule defines the first check: verify if your jurisdiction prohibits adding a fee for card use. The term "surcharge" in this context means any means of increasing the regular price to a cardholder that is not imposed on a customer paying by cash, check or similar means.
In Minnesota, a surcharge is defined as a fee or charge imposed by a seller or lessor upon a customer that increases the price of goods or services to the customer because the customer uses a credit or charge card to purchase or lease the goods or services, as stated by the Minnesota Office of the Revisor of Statutes. This definition frames the second check: identify whether your pricing structure adds a fee specifically because of the payment method. The six checks in this guide cover the surcharge ban, the distinction between a discount and a surcharge, the five percent cap, the cost-based limit, the penalty and refund requirement, and the card digit limit.
Key takeaways
- Check if your state bans surcharges; Maine prohibits imposing a surcharge on a cardholder who uses a credit or debit card instead of cash or check, according to the Maine Legislature.
- Distinguish discounts from surcharges; a discount or reduction from the regular price is not a surcharge, as defined by the Maine Legislature.
- Verify your surcharge cap; Minnesota limits the surcharge to five percent of the purchase price, according to the Minnesota Office of the Revisor of Statutes.
- Know the penalty for violations; a seller who violates the Minnesota statute faces a civil penalty of not more than $500 and must refund the surcharge to each buyer, according to the Minnesota Office of the Revisor of Statutes.
- Limit printed card data; Washington prohibits printing more than the last five digits of the card account number or the expiration date on a printed slip, according to the Washington State Legislature.
Before opening the till: what counts as a surcharge
The first check is defining whether your pricing structure is a surcharge or a discount. Under Title 9-A, section 8-509: Credit card and debit card surcharge prohibition, a discount or reduction from the regular price is not a surcharge. This distinction matters when you set your register prices. If you keep the higher price for card payments, Maine's definition of surcharge can apply, because it covers any increase to the cardholder's price that is not imposed on customers paying by cash. You must ensure your register reflects this structure correctly before the first transaction of the day.
In Minnesota, the definition of a surcharge includes a specific exception for cash discounts. According to Minnesota Office of the Revisor of Statutes, the term does not include a discount offered to a customer who pays by cash, check, or similar means not involving a credit or charge card. This exception applies only if the discount is offered to all prospective customers and its availability is clearly and conspicuously disclosed to all prospective customers. If you offer a cash discount in Minnesota, you must disclose it to every potential buyer, not just those who ask.
Minnesota also sets a rule for shops that issue their own credit or charge cards. A seller or lessor of goods or services that establishes and is responsible for the seller or lessor's own customer credit or charge card may not impose a surcharge on a customer who elects to use that credit or charge card in lieu of payment by cash, check, or similar means. This rule applies specifically to the shop's own card program. This restriction is separate from the rules governing third-party credit and debit cards.
Check your register settings to ensure they match these definitions. If you use a cash discount model, verify that the discount is visible to all customers. If you issue a store card, confirm that no surcharge is applied to transactions using that card. These steps align your pricing with the definitions provided by the Maine Legislature and the Minnesota Office of the Revisor of Statutes. For the tax side of each item, see sales tax checks for shop items.
At the counter: caps, cash discounts and costs
If you sell in Minnesota, the law sets a hard ceiling on what you can add to a card purchase. According to Minnesota Office of the Revisor of Statutes, a surcharge must not exceed five percent of the purchase price. The five percent limit applies to the surcharge amount itself, not to the total card payment. If the surcharge itself is more than five percent of the purchase price, you are violating the statute.
The penalty for crossing that line is specific. A seller who violates this section faces a civil penalty of not more than $500 and must refund the surcharge to each buyer. This means if a surcharge exceeds the cap, you must refund the entire surcharge to each buyer who paid it, not only the amount above the cap, and the civil penalty can apply as well.
Maine's rules are different in scope. The Maine Legislature writes its cost limits for governmental entities, not private shops. That section says a surcharge cannot exceed the costs directly incurred by the governmental entity or assessed by an authorized third-party payment service provider. It also states that if no cost is assessed by a provider for a debit card transaction, the entity may not impose a surcharge for that debit card. Because these limits are written for government bodies, do not copy them to your private shop's register settings.
For your counter practice, keep the cash discount separate from any surcharge. In Minnesota, a discount from the regular price is not a surcharge, but it must be offered to all prospective customers and clearly disclosed. This distinction matters because the five percent cap applies to surcharges, not to discounts you choose to offer.
Check your register's surcharge setting before you open the till. If you are in Minnesota, ensure the percentage is set at or below five percent. If you are in Maine, remember that the state bars surcharges on card use for private sellers, so your register should not add a fee for credit or debit card payments. For the wider register setup, see setting up sales tax on a shop register.
Illustrative example: a $20 sale in Minnesota
A shop in Minnesota sells an item for $20 and adds a card surcharge of $2. Five percent of $20 is $1, so the $2 surcharge is above the cap. The shop must refund the full $2 surcharge to the buyer, and it is subject to a civil penalty of not more than $500. The figures are round numbers chosen only to show how the cap is tested.
After the sale: what a printed card slip may show
When you finish a sale and the register prints a card slip, the printed content is subject to state limits. In Washington, the rule applies to any person accepting credit or debit cards for business. The Washington State Legislature states that a card slip shall not print more than the last five digits of the card account number. It also prohibits printing the card expiration date on that slip. This restriction covers both credit and debit cards.
The scope of this rule depends on how the slip is generated. The same source notes that the section applies only to slips that are electronically printed. It does not apply to transactions where the sole means of recording the card number is by handwriting or by an impression or copy of the card. If your shop uses a manual slip with a handwritten number, this electronic slip limit does not govern that record. However, if your register prints the slip, the five-digit limit and the ban on the expiration date apply.
The rule also defines which slips are covered. The source clarifies that this includes all slips kept by the person or provided to the cardholder. This means the limit applies to the copy the customer takes home and the copy your shop keeps for records. You cannot print the full number for the customer but a shorter version for your files; the restriction covers both.
Why does this rule exist? The legislature intends to provide some protection for consumers by limiting the information that can appear on a card slip. This is a consumer protection measure aimed at reducing the amount of sensitive card data exposed on physical paper. It is not a rule about surcharges or pricing, but about the data printed on the slip itself.
To check your register, print a test slip and count the digits. If more than the last five digits of the account number appear, or if the expiration date is printed, your register settings need adjustment.
Card checks reference table: what each check prevents
The table below lists the six checks, the publisher that sets each rule, and the specific violation it prevents. Each row cites the source that defines the check.
| Publisher | Check | What it prevents |
|---|---|---|
| Maine Legislature | Surcharge ban on card use | A seller imposing a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means. |
| Maine Legislature | Discount is not a surcharge | Treating a discount or reduction from the regular price as a surcharge. |
| Minnesota Office of the Revisor of Statutes | Five percent cap | A surcharge exceeding five percent of the purchase price. |
| Maine Legislature | Cost-based limit | A governmental entity surcharge above the card service costs. This limit does not apply to private shops. |
| Minnesota Office of the Revisor of Statutes | Penalty and refund | A seller failing to refund the surcharge to each buyer after violating the section, which is subject to a civil penalty of not more than $500. |
| Washington State Legislature | Card slip digits | Printing more than the last five digits of the card account number or the card expiration date on a credit or debit card slip. |
Register card-payment checklist
Use this checklist at your register before you ring the first card sale of the day. It maps to the six checks in this article.
- Surcharge ban on card use. Does your state bar adding a surcharge when a customer pays by credit or debit card instead of cash or check? Start with the Maine Legislature text.
- Cash discount is not surcharge. In Minnesota, if you offer a lower cash price, confirm it is offered to all prospective customers and clearly disclosed.
- Five percent cap. If your state allows surcharges, check whether a cap applies. Minnesota caps a surcharge at five percent of the purchase price.
- Cost-based limit. Note that Maine's cost limits are written for governmental entities, not private shops. Do not copy them to your register.
- Penalty and refund. Know the penalty if a surcharge is unlawful. Minnesota sets a civil penalty of not more than $500 and requires the seller to refund the surcharge.
- Card slip digits. Check what your register printer shows. Washington says electronically printed slips may not show more than the last five digits of the card number or the expiration date.
Next step: print one test slip from your register today and count the card digits and any expiry date it shows.
Related guides: Gift card disclosures: 5 checks before your shop sells · Inventory adjustment: 6 checks before updating shop stock.
FAQ: surcharges and card slips
What are the card surcharge rules for a small shop?
In Maine, a seller may not impose a surcharge on a cardholder who uses a credit or debit card instead of cash or check, as stated by the Maine Legislature. In Minnesota, a surcharge may not exceed five percent of the purchase price, and the statute sets other conditions too, according to the Minnesota Office of the Revisor of Statutes. These rules apply to sellers in those specific states, not to every jurisdiction.
Is a cash discount the same as a card surcharge?
No, a discount or reduction from the regular price is not a surcharge in Maine, according to the Maine Legislature. Minnesota also distinguishes between the two, allowing a cash discount only if it is offered to all prospective customers and clearly disclosed, as noted by the Minnesota Office of the Revisor of Statutes. You must keep the discount separate from any surcharge calculation.
Is there a cap on card surcharges?
Minnesota caps the surcharge at five percent of the purchase price, as defined in Sec. 325G.051 MN Statutes. This limit applies specifically to transactions in that state. Other states may have different caps or bans, so you must check your local laws.
What happens if a shop charges an unlawful surcharge?
In Minnesota, a seller who violates the surcharge rules is subject to a civil penalty of not more than $500, according to the Minnesota Office of the Revisor of Statutes. The seller must also refund the surcharge to each buyer.
Do these state rules apply to my shop?
Maine and Minnesota rules apply to sellers operating in those states, while Washington rules apply to electronically printed slips in Washington. You must verify which state laws govern your specific location. These rules do not automatically apply to shops in other jurisdictions.