Surcharging is the practice of adding a small percentage fee to credit card transactions to help your firm offset payment processing costs.
Regional Availability
As of March 2024, surcharging is legal in most U.S. states. However, it is currently prohibited in the following jurisdictions:
Connecticut
Maine
Massachusetts
New York
Puerto Rico
Compliance Requirements
If your state allows surcharging, major credit card brands require you to follow these four specific procedures:
Provide 30-Day Notice: You must notify credit card brands 30 days before you begin surcharging.
Note: If you use LawPay, a member of the support team will handle this notification for you.
Notify Your Clients: You must inform clients of your intent to surcharge no later than the day you implement the fees. This can be done via:
A line item on your invoices.
Signage in your office or on your website.
Adhere to the 3% Cap: Per card brand regulations, a surcharge cannot exceed 3%.
Credit Cards Only: You are strictly prohibited from surcharging debit card transactions.
‼️IMPORTANT
To ensure your firm remains compliant with evolving state laws and card brand rules, view the full surcharge guide.