Credit Card Surcharge Laws in Georgia

Have you been charged a surcharge fee for paying with a credit card in Georgia? Or maybe you’re a merchant in Georgia who’s thinking about imposing a surcharge to offset your processing costs.

Regardless of what brought you here, I’ll explain everything you need to know about Georgia’s surcharge laws below.

Disclaimer: This information is for reference only. It is not legal advice, and you should consult with an attorney before implementing a surcharge. Rules are constantly changing, and you should verify the accuracy of surcharge laws directly with your state.

Is it Legal to Surcharge Credit Card Transactions in Georgia?

Credit card surcharging is legal in Georgia as long as the following conditions are met:

• The surcharge fee cannot be greater than the merchant’s cost of acceptance.
• Notice of the surcharge must be disclosed prior to the transaction—at the point of entry and at the point of sale.
• The exact amount of the surcharge must be shown on the customer’s receipt.

It’s also worth noting that the state of Georgia defines a surcharge as a percentage added to the transaction to recover the cost of the processing fee.

Essentially, merchants can’t profit from credit card surcharges in Georgia.

Surcharge laws in Georgia also apply to online sellers and ecommerce stores. The same rules apply for online transactions, but notice must be disclosed on the first page where the customer is prompted to enter their credit card information.

Georgia’s surcharge laws also make it clear that merchants cannot mislead customers, regardless of the payment method or transaction environment. If a merchant deceptively advertises a lower price and then charges more (in an attempt to conceal price differences between credit, debit, and cash payments), they can be found in violation of Georgia’s false advertising laws. 

Fines range from $200 to $1,000 per violation, according to Georgia Code 10-1-421. 

What is the Maximum Allowable Surcharge in Georgia?

Georgia law does not put a specific percentage cap on credit card surcharging—however, federal law limits credit card surcharges to 4% of the transaction.

But remember, Georgia does not allow merchants to profit on surcharge fees. So while the federal government may allow surcharges as high as 4%, you’ll be violating Georgia’s state laws if you charge a 4% surcharge fee and your cost of acceptance is 3% (or anything less than 4%).

Merchants should also be aware that every card network has its own surcharging rules. 

Here’s an example. According to Visa’s surcharge rules, merchants can’t surcharge more than 3% on Visa cards—and surcharges must be applied equally to all cards accepted (meaning you can’t charge a different rate for Mastercard or Amex). 

While you technically wouldn’t be violating a law by imposing a surcharge higher than 3% in Georgia (assuming your cost of acceptance is less), you’d be violating Visa’s rules, which are subject to other penalties. 

Georgia’s Laws on Convenience Fees

Georgia has different laws governing convenience fees. 

First, let’s quickly clarify the difference between surcharges and convenience fees, as these two terms are not the same.

In Georgia, a convenience fee is defined as a flat fee (dollar amount) charged on electronic payment methods—like credit and debit cards. Whereas a surcharge is the percentage of the transaction that can only be charged on credit cards.

It’s legal for merchants in Georgia to charge a convenience fee on credit and debit cards only if they also provide alternative payment methods where no fee is charged (cash, check, or money order). 

Georgia law also requires the merchant to provide notice of the convenience fee prior to the transaction, which includes:

• The flat dollar amount of the fee.
• A statement explaining that the convenience fee is not refundable.
• An explanation that the fee is only charged for electronic payments. 

This comes from Georgia House Bill 299, which amends Chapter 1 Title 13 of Official Georgia Code.

Is Debit Card Surcharging Legal in Georgia?

Debit card surcharging is illegal in all 50 states. 

However, Georgia does allow convenience fees to be charged on debit cards—which is a fixed dollar amount for all electronic payments that can be applied when alternative fee-free methods are accepted.

This is very tricky, and I’d strongly recommend consulting with a local attorney in Georgia before you consider charging any fees for accepting debit cards.

There’s a really fine line between what’s legal and what’s illegal here, and you could be found in violation of both state and federal laws if you make a mistake. 

Read More: Surcharge Laws by State

Options For Consumers in Georgia Impacted by Surcharges

Have you been charged a surcharge or convenience fee for paying with a credit card in the state of Georgia? Drop a comment and tell us about it.

To be clear, our MCC doesn’t provide any services for consumers, and we don’t offer legal advice to anyone. But we do want to help facilitate the conversation between consumers and merchants for hot topics like surcharging.

We think that if more customers voice their opinions on surcharging, it can help businesses decide whether it makes sense to add those fees.

If you’d like to report a business that you believe is improperly imposing surcharges or violating Georgia’s deceptive sales practices law, you can file a complaint online directly with the Georgia Attorney General Consumer Protection Division. 

Surcharging Alternatives For Merchants

For merchants, adding a surcharge to help recoup your processing costs might seem like a quick and easy fix to offset rising costs. But it can have long-term implications for your business.

Legality aside, 85% of consumers say they feel “nickel and dimed” by paying a fee associated with credit card processing.

Is that really how you want your customers to feel after patronizing your business?

Rather than passing merchant fees to your customers, you can simply look for other opportunities to reduce your processing rates. It’s a win-win for everyone, as you’ll pay less to accept cards, and your customers won’t feel like they’re being asked to cover your operating costs.

If you need help lowering your credit card processing fees, contact our team here at Merchant Consulting. We can help you save money without switching processors.