Alaska doesn’t have any state laws that prohibit or regulate credit card surcharges, making it one of the most straightforward states to understand. That said, merchants still need to follow federal guidelines and card network rules to stay compliant.
Here’s a quick summary of what you need to know:
- Surcharging is legal in Alaska.
- There are no Alaska-specific laws governing credit card surcharges.
- Federal law allows surcharging up to 4% of the transaction amount.
- But card network rules effectively cap surcharge fees at 3%.
- Debit card surcharging is illegal in Alaska (as it is in all 50 states).
Beyond these key highlights, there’s still a lot more to understand about credit card surcharging in Alaska. And businesses may want to think twice before implementing a surcharge program (even though it’s legal).
So whether you’re operating a business in The Last Frontier or you’re a consumer who wants to understand your rights, read on to learn more.
Disclaimer: This information is for reference only. It’s not legal advice, and you should consult with an attorney to verify local laws before implementing a surcharge.
Can Alaska Businesses Surcharge Credit Card Payments?
Yes, merchants in Alaska can legally add a surcharge fee to credit card transactions.
Since there are no state laws that specifically address surcharges in Alaska, merchants can default to federal regulations. This caps surcharge fees at 4% of the transaction amount.
However, card networks like Visa and Mastercard have their own rules that effectively limit surcharges to 3% in most scenarios.
Violating the card network rules isn’t technically “illegal.” But you can still face penalties, fines, or even lose your ability to accept certain cards.
More Information About Federal Regulations and Card Network Rules
Alaska businesses considering surcharge programs still need to comply with federal laws and rules from the card networks. This means:
- Surcharges can only be applied to credit cards.
- Debit card surcharging is illegal (including prepaid cards, SNAP cards, and debit cards run as a “credit” through your system).
- Each card network has its own rules, but when you combine them, surcharges are capped at 3% for all card brands.
- You must clearly disclose surcharge fees before the transaction and in accordance with FTC guidelines.
- Surcharges must be listed as a separate line item on all receipts.
- You also need to disclose surcharge fees on your website before taking any payment information, and verbally notify customers of fees that apply for phone transactions.
- Card networks must be notified 30 days in advance before you start surcharging.
We strongly suggest that you consult with a local attorney before you implement any surcharge fees. Your processor might give you wrong information, so it’s on you to confirm the latest card network rules directly from the networks and ensure you’re complying with all laws.
Read More: Credit Card Surcharge Laws in all 50 States
Alaska Lawyers Can Surcharge Clients Who Pay With a Credit Card
Something unique about Alaska that I haven’t seen when researching surcharge laws in other states is that the Alaska Bar Association specifically addressed whether attorneys could pass credit card processing fees to clients.
In Ethics Opinion No. 2014-1, the Bar concluded that Alaska lawyers may charge a surcharge fee or pass on credit card processing fees to their clients. Assuming the charge is “reasonable” and the client consents to the charge after full disclosure.
The opinion also states that the lawyer’s fee agreement should specifically explain whether the attorney intends to charge clients for credit card transaction fees. Without this disclosure, clients have every right to assume that processing fees will be covered by the lawyer’s fee.
While this ruling is specific to attorneys, it demonstrates that Alaska’s legal community recognizes the complexities of surcharging. And just because the state doesn’t take a stance on it being legal, the Bar still took time to address this and conclude that proper disclosure is a key point of emphasis.
Why Alaska Businesses Should Think Twice About Surcharging
Despite it being legal, there are plenty of Alaska-specific reasons why you might want to reconsider this approach:
Alaska Has the Highest Credit Card Debt in the Country
According to recent data, Alaska has the highest median credit card debt per person in the US. The average person in Alaska has $3,683 in credit card debt spread across 2.84 cards.
To put that into perspective, the nationwide average is $2,784. So Alaska’s median credit card debt is about 32% higher than what the average American carries.
Charging your customers even more just to use their credit cards isn’t doing anyone any favors. It only adds to the financial burden that many Alaska residents are struggling to manage.
Alaska also experienced the second-largest drop in average credit limits nationwide in 2025 (nearly 12% year-over-year). This data continues to suggest that Alaska consumers are already under financial stress, and adding surcharge fees only compounds these problems.
Alaska Lawmakers Are Taking Consumer Protections Seriously
In May 2025, the House passed Senate Bill 39 in an attempt to cap interest rates on payday loans at 36% for loans of $25,000 or less. The bill was designed to protect Alaskans from predatory lending practices that charge interest rates anywhere from 194% to 521% APR.
While Governor Dunleavy ultimately vetoed the bill, the fact that it passed both the House and Senate with bipartisan support shows that lawmakers in Alaska are paying attention to consumer protection issues.
It’s not unreasonable to think that surcharging could be on the table next. If lawmakers are looking for other ways to protect consumers from extra fees, they could easily introduce bills in the coming years to eliminate surcharging (we’ve seen this recently in other states).
Tourism is a $5.6 Billion Economic Driver for Alaska
According to the Alaska Travel Industry Association, the state generates $5.6 billion in total economic output per year from tourism. The industry supports over 48,000 jobs and brings more than three million visitors to Alaska annually.
Tourists are already spending a ton of money on their Alaska vacations. Airfare, cruises, lodging, and activities don’t come cheap.
So adding unexpected surcharge fees at the point of sale can definitely leave a bad taste in a visitor’s mouth. This is especially true if those travelers are coming from states where surcharging is either illegal or heavily restricted.
When they encounter them in Alaska, it can feel like a hidden cost or bait-and-switch pricing.
Tourism thrives on positive word-of-mouth and online reviews. One negative experience at checkout can turn into a bad review on Yelp or TripAdvisor that impacts your business for years to come.
Do you really want to risk your reputation and future business over recouping 2-3% of processing costs?
How to Report Illegal Surcharging in Alaska
For consumers, you can report illegal surcharging practices directly to the Alaska Consumer Protection Unit.
Just because the state allows surcharging it doesn’t mean merchants can do whatever they want. Businesses can be reported for:
- Adding surcharges that exceed 4% of the transaction amount.
- Surcharging debit cards or prepaid cards.
- Hiding fees or using deceptive practices.
- Failing to properly disclose surcharges to consumers.
You can also call the Consumer Protection Unit at 907-269-5200 or toll-free at 1-888-576-2529 or email them at consumerprotection@alaska.gov.
And while we don’t offer any services for consumers here at MCC, we’d still like to know about your opinion on surcharging in Alaska. So drop a comment below and let us know about your experience with surcharge fees, and we’ll pass those comments along to any businesses we work with.
Final Thoughts
Credit card surcharging is legal in Alaska. But that doesn’t mean you should do it.
Before you pass additional costs to your customers, you need to consider the bigger picture. Weigh the pros and cons of surcharging carefully to determine if it’s really the right choice for your business.
Instead, you can look for other ways to reduce your processing costs without burdening your customers.
Contact our team here at MCC for assistance. We’ll audit your statements for free to identify hidden fees and savings opportunities before negotiating better rates directly with your existing processor. You can save money without switching providers or passing costs to customers, so everyone wins.