Maine is in the minority compared to the credit card surcharge laws in other states. In short, credit card surcharging is illegal—but there are some exceptions to this law.
Whether you’re a merchant or consumer, this guide explains everything you need to know about Maine’s surcharge laws.
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 Credit Card Surcharging Legal in Maine?
No, adding a surcharge fee to credit card transactions is illegal in Maine.
Maine is one of four states where credit card surcharges are outright prohibited. Any merchant imposing an additional fee on the listed price for customers who choose to pay via credit card is in violation of Title 9-A of Maine’s Consumer Credit Code.
Is Debit Card Surcharging Legal in Maine?
No, debit card surcharging is illegal in Maine.
Maine’s no-surcharge law explicitly mentions debit cards, which is actually somewhat unique compared to other states. That’s because debit card surcharging is regulated by the federal government and illegal in all 50 states.
This means that violators here would be subject to penalties at both the state and federal levels.
Full Explanation of Maine’s Credit Card Surcharge Laws (With Workarounds and Exceptions)
If you’re running a business in Maine, you cannot add a surcharge fee on credit or debit transactions—period.
However, there are a few exceptions to this law that you should be aware of.
- Government entities are exempt from Maine’s no-surcharge laws.
- Cash discounting is legal in Maine.
- Dual pricing is also legal.
Let’s break this down a bit more so you fully understand these rules.
Government Entities
First and foremost, Maine allows government entities to impose surcharge fees on credit card and debit card transactions. If anyone other than a government entity charges an additional fee to use a credit card in Maine, it’s illegal.
Government entities and authorized third-party collection providers must still disclose any surcharge fees prior to the transaction, and this fee must not exceed the cost of acceptance.
Examples of transactions made to government entities that may incur a surcharge fee include:
- Taxes
- Utilities
- Registration Fees
- License and Permit Fees
- Fines
- Regulatory Fees
Cash Discounts and Dual Pricing
The state of Maine defines a surcharge as “any means of increasing the regular price to a cardholder that is not imposed on a customer paying by cash, check, or similar means.”
Title 9-A also has specific language stating that a “discount or reduction from the regular price is not a surcharge.”
What does this mean?
In short, merchants have the option to offer cash discounts and dual pricing models.
With a cash discount program, businesses are allowed to post clear signage explaining that there will be a reduced rate for any customer who pays with cash.
For example, let’s say you offer a 3% cash discount. If the regular price product costs $50, then any customer who pays with cash can be charged $48.50. Customers paying by credit card will pay the regular listed price of $50.
This is different from increasing the listed price by 3% ($51.50), which is considered a surcharge under Maine law.
Read More: Surcharging vs. Cash Discounts in Credit Card Processing
Dual pricing is also allowed. This is similar to cash discounting, except the merchant actually lists both prices side-by-side instead of just offering a blanket discount on cash transactions.
If you’re offering a cash discount or setting up dual pricing, the listed price must be just as noticeable or more noticeable as the cash price.
It’s all about transparency and clearly disclosing the price to customers upfront.
You can’t advertise your lowest prices (cash) big and bold, with the card price in small print right below it. If anything, the more expensive price would have to be more apparent—so customers don’t feel like they’re getting a bait and switch.
How to Report Illegal Surcharging in Maine
If you believe that a seller in Maine has violated the state’s surcharging laws, you can report them directly to the Maine Bureau of Consumer Protection. Submitting a complaint online is the easiest method.
You can also download and mail the form to:
Department of Professional & Financial Regulation
Bureau of Consumer Credit Protection
35 State House Station
Augusta, Maine 04333
If you prefer fax, the number is: (207) 582-7699.
We also want to hear from any customers in Maine who have experienced illegal surcharges or encountered merchants offering cash discounts. While we don’t offer any consumer-specific services, this information is crucial in helping us consult with our clients, and we’ll pass that information directly to them. Drop a comment and let us know how you feel about surcharging as a consumer.
Surcharging Alternatives For Maine Businesses
Since surcharging is illegal in Maine, businesses are forced to explore other options as they deal with rising costs associated with credit card processing.
While cash discounting and dual pricing are both legal, neither addresses your processing costs—as many customers may still choose to pay with a card.
Here are some tips:
- Negotiate better rates directly with your current processor.
- Audit your statements to look for hidden fees and padded assessments.
- Don’t switch processors just for the sake of getting a lower rate. These are normally short-lived, and switching is almost always more expensive in the long run.
If this feels overwhelming and you’re having trouble understanding all the fees on your statements, contact our team here at MCC for a free audit and assessment. We’ll identify cost savings and negotiate with your current processor on your behalf—so you can save money without switching.