Idaho has some of the most straightforward surcharging laws in the country.
That said, it’s still important for both businesses and consumers to understand what’s legal and what’s not when it comes to credit card surcharging. The information below can help merchants stay compliant and also help consumers avoid being taken advantage of.
Disclaimer: This information is for reference only, and it does not constitute legal advice. Consult with an attorney with any legal-specific questions.
The Quick Answer
Yes, credit card surcharging is legal in Idaho.
Unlike other states that regulate or outright ban surcharging, Idaho maintains a straightforward approach that allows businesses to surcharge credit card transactions—as long as they follow federal regulations and card network rules.
What Idaho Merchants Need to Know
Idaho merchants ultimately have the flexibility to implement surcharge programs without any state-specific restrictions. There are no unique statutes or regulations that address how and when businesses can surcharge credit card transactions.
But you still need to follow federal laws and card network rules to avoid penalties and stay compliant.
- Federal law caps surcharges at 4% of the transaction amount.
- Surcharges can only be applied to credit cards, not debit cards.
- Businesses must clearly disclose surcharge fees before accepting payments.
- Visa caps surcharges at 3%, and Mastercard caps them at 4%.
- Amex requires any surcharges to be applied equally across all card brands.
- You must notify the card networks prior to implementing a surcharge program (typically 30 days in advance).
Again, this is all relatively straightforward stuff compared to how strict the surcharge laws are in other states.
Idaho Government’s Own Surcharging Practices
One of the most telling aspects of Idaho’s approach to surcharging is how state agencies handle payment collections via credit card.
Idaho’s state tax commissioner charges a 2.5% fee on payments made through its online portal. And Idaho courts assess an electronic payment fee for debits collected by credit card.
This is all outlined in Idaho Code § 31-3221, which explicitly authorizes district courts to assess additional fees to cover the costs assessed by payment processors. It ultimately reflects how even the state’s own judicial system embraces surcharging when properly disclosed and authorized.
Best Practices For Implementing Surcharges in Idaho
If you’re a merchant in Idaho who’s considering adding a surcharge fee to credit card transactions, here are some helpful tips that you can follow for implementation:
Notify Your Processor and Card Networks
The first thing you need to do is contact your processor and tell them about your desire to start surcharging. They should be able to help you out (but this is no guarantee—in my EVO Payments review, I highlighted how this processor sent outdated surcharging materials from 2021 to a merchant in 2025).
But you likely still need to contact them based on the terms of your merchant agreement.
All of the card networks also require notification, usually 30 days’ notice. You can basically just copy and paste the same message and send it out to Visa, Mastercard, Amex, and Discover.
Ensure Proper Disclosure
Despite Idaho’s lax surcharge laws, you shouldn’t be deceiving your customers. Post clear and conspicuous notice of any applicable surcharge fees so nobody is surprised if they’re charged more than the listed price.
- Post signage at your point of entry
- Put another sign at the point of sale
- Add it to your website’s homepage
- Include the notice again on the checkout page
This way your customers don’t feel like you’re advertising one price and charging them for something else.
You could also use a dual pricing model—listing one price for paying cash and another for using a credit card. This isn’t a requirement at all, but it definitely makes things more transparent for the customer.
Assess Your Market
Before officially implementing a surcharge program, take a moment to consider your customers and industry.
Are your competitors surcharging? How price-sensitive are your customers? Would adding a surcharge fee cause you to lose customers?
There are several different ways to look at this. If all of your competitors are surcharging, then you might decide it’s a no-brainer to do the same. Other companies might use this as a competitive advantage by not passing their cost of doing business to the consumer.
Cash discounting is another option to consider here. Rather than increasing the price when a customer pays via credit card, you can lower the price for customers who pay cash.
Read More: 11 Reasons Why Businesses Should NOT Surcharge Credit Cards
Update Your Systems
Finally, you need to make sure your POS systems, payment terminals, and gateways are all properly set up to correctly add the surcharge.
You’ll also need to have processes in place to ensure you aren’t accidentally surcharging debit cards, which would be illegal.
Configure your systems to itemize the surcharge as a separate line item on all receipts as well. This should be the case regardless of the transaction environment—whether in-person, online, or over the phone.
What Consumers in Idaho Need to Know
Just because surcharging is legal in Idaho, it doesn’t mean that consumers should just automatically assume that any extra fee added to your payment is legitimate.
It’s illegal for businesses in Idaho to surcharge debit card transactions. Any credit card surcharge fees exceeding 4% of the transaction amount are also illegal.
So if you encounter businesses doing either of these things, you can demand the surcharge be removed prior to paying.
To report a business that’s illegally surcharging transactions, you can file a complaint online directly to Idaho’s Attorney General Consumer Protection Division. Or mail your complaint to:
Office of the Attorney General
Consumer Protection Division
954 W. Jefferson, 2nd Floor
Boise, ID 83702
Other contact options include:
Phone: 208-334-2424
Toll-free: 1-800-432-3545
Fax: 208-334-4151
Final Thoughts
Surcharging credit card transactions in Idaho is pretty straightforward. It’s legal, and there are no state-specific regulations or stipulations that need to be followed.
While there are plenty of reasonable scenarios when surcharging makes sense, you still run the risk of losing customers. So you need to ask yourself whether that extra 3% is worth it if you’re losing business.
My suggestion is that you look for alternative ways to lower your processing costs. While you’ll still have to pay the processing fees yourself, reducing those costs is likely a better option for your business in the long run.
Our team here at MCC can audit your statements for free to identify any cost-saving opportunities. We’ll find bogus fees, hidden charges, and negotiate your rates directly with your processor on your behalf.