Surcharging trends are sweeping the nation, and it’s become one of the most frequent topics our team gets questions about here at MCC.
One thing that you need to understand is that surcharge laws vary by location. So if you’re a business or consumer in Wyoming, you may have a different experience with surcharges locally than you do out of state.
If you’re thinking about surcharging your customers in Wyoming, you need to know these laws to ensure compliance. But it’s equally important for consumers to know the state laws to ensure they’re not getting ripped off.
And while surcharge policies are relatively straightforward here, Wyoming is actually the only state in the country with a certain restriction.
Is Credit Card Surcharging Legal in Wyoming?
Yes, businesses in Wyoming can legally add surcharge fees to credit card transactions.
The state doesn’t have any specific statutes that address surcharging directly, which puts it among the majority of states where surcharging is allowed without any state-level restrictions beyond federal guidelines.
But just because state law doesn’t prohibit surcharging, it doesn’t mean that you can add extra fees wherever you want.
Merchants in Wyoming still need to comply with federal regulations and card network compliance that could result in hefty penalties. Plus, there’s a hyper-relevant Wyoming law that indirectly applies to surcharges (even though “surcharge” isn’t explicitly mentioned).
Cash Discounting is Regulated in Wyoming
While Wyoming doesn’t have any anti-surcharge laws, the state does have provisions for cash discounts in its legal code.
Under Wyoming Statute 40-14-209, which is part of the Wyoming Uniform Consumer Credit code, sellers can offer discounts up to 5% for customers who pay by cash, check, or other means that don’t involve a credit card.
The key requirement here is that 5% maximum, which is the only state in the country that imposes a cap on cash discounts.
Cash discounts must be offered to all prospective buyers and clearly disclosed in accordance with the federal Consumer Protection Act.
The statute also defines what is NOT considered a service charge for credit. It specifically allows discounts for non-card payments and doesn’t actually say anything about surcharges.
But it’s important to understand because cash discounts are often used as workarounds to surcharges in other states, but here in Wyoming, they’re the only thing that’s regulated.
Surcharge Fees vs. Cash Discounts in Wyoming
The distinction between surcharges and cash discounts is crucial for Wyoming merchants since the state uniquely regulates cash discounting but not surcharging.
Surcharges add an extra fee when customers pay with a credit card. The base price stays the same, but credit card users pay more.
Example: 3% surcharge on a $50 item would result in a $51.50 card price or $50 cash price.
Cash discounts do the opposite. They reduce the price when a customer pays with cash, check, or non-card method. The base price effectively becomes the card price, but cash customers get a discount.
Example: 5% cash discount on a $50 item would result in customers paying $47.50 with cash or $50 by card.
While you can technically surcharge up to 4% without violating any state or federal laws, you can only offer cash discounts up to 5%.
For most businesses in Wyoming, this distinction is more about semantics than anything else. But it’s really important when structuring your pricing strategy and notices to ensure compliance. If you’re using a cash discount instead of a surcharge, you need to make sure that it’s capped at 5% (even though everywhere else across the country allows higher cash discounts).
Read More: Surcharging vs. Cash Discounts in Payment Processing
Debit Card Surcharging is Illegal
This is non-negotiable. You can’t surcharge debit card transactions in Wyoming, as this is illegal in all 50 states.
As part of the 2010 Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, debit card surcharging is illegal at the federal level. This law also applies to prepaid cards and debit cards being run through systems as a “credit” charge.
Violating this federal law can result in serious consequences, including fines and legal action against your business.
So if you do decide to implement a surcharge program, make sure you have a system in place to distinguish between credit and debit cards.
Surcharge Fees Are Capped at 4% Under Federal Law
Again, Wyoming doesn’t have its own surcharge cap (just cash discount maximum). So merchants can default to federal law here, which limits surcharges to 4% of the transaction amount.
This federal law applies to all states, regardless of whether they have their own state-level restrictions.
The 4% limit was established to prevent merchants from using surcharge fees to inflate their prices or generate additional profits beyond covering their processing costs.
But in practice, most businesses are probably looking at an effective cap that’s less than 4%.
Why? Because the card networks (Visa, Mastercard, American Express, and Discover) have their own rules that ultimately restrict surcharges to 3% or less (more on this later).
Customers Must be Clearly Notified Prior to the Transaction
Transparency is key when it comes to surcharging. This comes from the card networks and the federal government.
Before a customer completes a transaction, they need to know about any surcharge fees that will be applied. This means posting clear signage at your business entrance and at the point of sale for brick-and-mortar locations.
The signage should clearly state that a surcharge fee will apply to credit card transactions and include the percentage.
Restaurants typically need to have disclosures on their menus as well.
For online businesses, surcharges must be disclosed on your website before customers complete the checkout.
Receipts need to include surcharges as a separate line item. Meaning you can’t just inflate the price by 3% and call it a day. Customers need to see exactly how much they paid for a product or service compared to how much went toward the surcharge.
Failure to properly disclose surcharge fees can get you in trouble with the card networks or Fed. You can review the FTC’s guidelines for more info.
Card Network Rules Also Apply
Here’s where things can get a bit tricky for Wyoming merchants, as these aren’t technically “laws” in the legal sense. So you can’t be jailed or fined by the state for violations here.
But the card networks can penalize you for non-compliance, and you agree to these terms as part of your merchant agreements for accepting their cards.
Each network has its own published rules for surcharging that merchants must follow (if they decide to surcharge). These rules cover everything from maximum allowable surcharge fees to disclosure requirements.
Here are the big ones to know:
- Advance Notice: You must notify the card networks at least 30 days before you start surcharging.
- Uniform Application: Surcharges must be applied equally to all cards (it’s all or nothing, and you can’t randomly decide to surcharge one card or customer and not another).
- 3% Cap: While federal law allows 4%, Visa limits surcharges to 3% and uniform application rules effectively limit this to 3% for all cards.
- Clear Disclosure: Like the Fed, the card networks don’t want their customers to be hit with surprise fees at checkout, so you need to inform them ahead of time.
So even though Wyoming law is pretty hands-off when it comes to surcharging, you still need to follow restrictions set forth by the card networks.
Reporting Surcharge Violations in Wyoming
For consumers in Wyoming, just because surcharging is legal it doesn’t mean that merchants can do whatever they want.
If you encounter a business that’s violating the rules (like surcharging debit cards, failing to disclose the fee, charging more than 4%, or imposing a cash discount that exceeds 5%), you can file a complaint directly with the Wyoming Attorney General’s Consumer Protection Unit.
Here are your options:
- File a complaint online
- Email ag.consumer@wyo.gov
- Call (307) 777 – 6397 or (307) 777 – 8962
- Fax (307) 777 – 3435
Or mail complaints to:
Wyoming Attorney General’s Office
Consumer Protection and Antitrust Unit
109 State Capitol
Cheyenne, WY 82002
We don’t offer any consumer services here at MCC, but we’re always interested in hearing about real-world surcharging experiences. So if you’ve encountered surcharges or cash discounts in Wyoming (good or bad), drop a comment and let us know about it.
We’ll share those insights with businesses that we work with so they can better understand consumer perspectives on surcharging.
Final Thoughts: Should Your Wyoming Business Implement a Surcharge?
Surcharging might be legal in Wyoming, and might seem like an easy way to recoup processing costs. But that doesn’t automatically make it the right move for your business.
The reality is that consumers hate surcharges. Multiple studies show negative sentiment toward these fees, and businesses across the country are experiencing customer pushback, lost sales, and damaged relationships because of surcharge programs.
Ask yourself this: Is recovering 2-3% per transaction worth losing a loyal customer? Is it worth the negative reviews, complaints, and customers who walk out when they see a surcharge notice?
For most businesses, the answer is no.
Fortunately, there are better ways to lower your credit card processing costs without alienating your customers.
Here at MCC, our team will audit your merchant statements completely free of charge. We’ll identify hidden fees, overcharges, billing errors, and unnecessary costs that are inflating your rates. Then we’ll negotiate directly with your processor on your behalf to secure better pricing.
No surcharging. No switching providers. It’s a win-win for everyone, as your customers don’t pay extra and you can still save money.