If you’re running a business in Missouri and wondering whether you can legally add a surcharge fee to credit card transactions, the answer is yes. Missouri allows credit card surcharging with minimal state-level restrictions compared to other states.
That said, you’ll still need to comply with federal limits, card network rules, FTC disclosure requirements, and other rules if you want to stay compliant.
Consumers in Missouri should also understand these rules to ensure they’re not being charged illegal fees.
Read on for the full breakdown.
Disclaimer: This information is for reference only. It is not legal advice, and you should consult with an attorney before implementing a surcharge.
Are Credit Card Surcharges Legal in Missouri?
Yes, businesses in Missouri can legally add a surcharge fee on credit card transactions.
Missouri doesn’t have state-specific laws that prohibit or regulate surcharging practices. The state takes a fairly hands-off approach, which means businesses can default to federal regulations and card network rules if they choose to implement surcharges.
However, Missouri does have specific requirements for how businesses must disclose convenience fees.
Missouri Disclosure Requirements for Convenience Fees
According to Missouri statute section 408.140, any merchant imposing a convenience fee must provide clear disclosure prior to imposing the fee. This disclosure statement must include:
- The dollar amount of the fee (not just the percentage).
- A statement that the fee is nonrefundable (if applicable).
- Language that the fee is charged for a specific payment method.
While convenience fees and surcharge fees are not technically the same thing, businesses in Kentucky should still follow these guidelines to avoid being caught in a gray area. And most of these rules are similar to the FTC’s disclosure requirements for surcharges and convenience fees.
Essentially you can’t surprise customers with extra fees at checkout. They need to be made aware that extra charges apply if they’re paying via credit card, and how much those fees are going to cost them.
Federal Limits Still Apply in Missouri
Even though the state of Missouri allows surcharging, you still need to comply with federal regulations.
Here’s what that means:
- Credit card surcharges cannot exceed 4% of the transaction amount.
- Surcharges are only allowed on credit cards (not debit cards or prepaid cards).
- Merchants must clearly disclose surcharges to customers before the transaction is completed.
- Surcharge fees should appear as a separate line item on receipts.
These federal regulations establish a baseline that all merchants across the country must follow, regardless of what the state laws say. Many states have stricter requirements, but Missouri isn’t one of them.
Card Network Rules Effectively Cap Surcharge Fees at 3%
Here’s where things get interesting. While federal law legally allows surcharge fees up to 4%, the card networks have their own rules that effectively limit you to 3%.
Visa’s surcharging rules state that surcharges cannot exceed 3% of the transaction amount.
And while not every card network is this strict, the other networks have language in their rules stating that surcharges must be equally applied across all brands and card types.
This means that if you accept Visa cards and you want to surcharge all credit cards, you’re effectively capped at 3%. You can’t charge 3% to Visa cards and 4% to Amex cards. That’s not allowed.
You won’t be breaking the law in a legal sense. But the card networks can still slap you with hefty fines for non-compliance.
It’s also worth noting that all the card networks typically require you to notify them at least 30 days before you start any surcharging programs.
Debit Card Surcharging is Illegal in Missouri
As previously mentioned, debit card surcharging is illegal at the federal level.
This restriction comes from the Durbin Amendment of the Dodd-Frank Act, which is a federal law applied across all 50 states. The law bans surcharge fees on debit cards and prepaid cards, even if those cards are run as a credit transaction at checkout.
It’s an important distinction that requires proper employee training. If your POS system is automatically set up to add a surcharge fee on every transaction and the customer pays with a debit card, you’re breaking the law.
Exception for Government Agencies and Convenience Fees
One interesting part of Missouri’s law exempts government agencies from stricter debit card requirements, allowing them to add a convenience fee to debit card transactions.
For example, the Missouri DMV charges a 2% + $0.25 convenience fee, even if customers pay with debit cards. This sounds like it would be breaking federal laws.
But when KY3 News in Missouri reached out to Dick Durbin’s office (who created the Durbin Amendment), they replied saying that there’s an exception to the debit card rules for government agencies, allowing them to recover costs associated with processing fees.
The bottom line is that yes, government offices in Missouri can collect extra fees on both credit and debit card transactions.
A Closer Look at Missouri House Bill 2383
It’s worth noting that Missouri’s surcharge laws could change in the future, and there have already been recent attempts to make these laws stricter.
In 2024, the Missouri House of Representatives considered House Bill 2383, which would have introduced tighter regulations around credit card surcharge fees and convenience fees in Missouri.
Here was the proposal:
- Surcharge fees would be capped at actual processing costs.
- Convenience fees could only be charged in the form of an (average) “actual cost” to merchants.
- Businesses would be required to offer an alternative payment option with no convenience fee.
- Applying rules to a broader list of credit cards, bank cards, digital wallet apps, etc.
While the bill ultimately didn’t pass, it’s still important for businesses to understand.
This echoes a nationwide effort for lawmakers to address consumer complaints with rising fees on what’s become a standard payment option. We’ve seen other states introduce similar laws (some passing, and some failing), while other states ban surcharge fees altogether.
So if you’re a merchant in Missouri that’s considering a surcharge program, you need to plan ahead and account for future changes to the law.
What’s legal today may not be legal tomorrow.
How to Report Illegal Surcharging in Missouri
If you encounter a business in Missouri with illegal surcharging practices, you can file a complaint directly to the state’s Attorney General’s office.
There’s an online submission form, and you can call the Missouri Consumer Protection Hotline at 1-800-392-8222 if you have questions or need help about filing a complaint.
Examples of illegal surcharging practices that warrant a complaint include:
- Surcharge fees that exceed 4% of the transaction.
- Surcharge fees on debit cards.
- No disclosure of the surcharge fee.
And while we don’t offer any consumer services here at MCC, we’d still love to hear about your experience with surcharging in Missouri. So drop us a comment on this page, and we’ll pass that info to local businesses we work with in your state.
Final Thoughts
So, should you surcharge your customers?
Just because surcharging is legal in Missouri, doesn’t mean it’s something you need to do.
While it may seem like an easy way to recoup your processing costs, there’s still lots of different rules you need to follow to remain compliant. And as we discussed, these laws can quickly change, which would be tough if you were relying on those fees and all of a sudden weren’t able to collect them.
Another thing that often gets lost in discussions about surcharging laws is how it impacts your customers. Your customers hate these fees, and you might actually lose business by implementing a surcharge program.
A better alternative to surcharging is simply looking for other ways to lower your processing costs. If you need help with this, contact our team here at Merchant Cost Consulting for assistance.
We’ll negotiate better terms with your existing processor to help you save thousands — without switching providers or burdening your customers with extra fees. Find out how much you can save today.