Credit card surcharging allows you to pass processing fees to customers who pay by credit card. Surcharging is legal in most US states but subject to strict card network rules. This guide covers compliant setup on Clover.
Step-by-Step Instructions
- Verify surcharging is legal in your state. Confirm with a legal or compliance advisor before proceeding — state laws vary.
- Notify your merchant processor of your intent to surcharge. They must register you with Visa and Mastercard as a surcharging merchant.
- Post required disclosure signage at your business entrance and at the point of sale: 'A surcharge of X% will be added to credit card transactions.'
- From dashboard.clover.com, go to Setup > Payments > Surcharging and enable the feature. Enter the surcharge percentage (maximum 3% per Visa/Mastercard rules as of 2025).
- Configure surcharging to apply to credit cards only — it cannot legally be applied to debit cards.
- The surcharge amount must appear on the receipt as a separate line item.
- Train all staff to inform customers of the surcharge at the time of payment.
📌 Important Note: Violations of Visa and Mastercard surcharging rules can result in fines up to $25,000. Ensure full compliance with all disclosure requirements before enabling this feature.
Frequently Asked Questions
No. Card network rules strictly prohibit surcharging debit transactions. Clover must be configured to apply surcharges to credit transactions only.
As of 2025, the maximum allowable surcharge is 3% or the merchant's actual cost of acceptance, whichever is lower.
A cash discount lowers the price for cash-paying customers. Surcharging adds a fee to credit card payments. Both achieve a similar net effect but have different compliance requirements.
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