North Carolina’s current credit card surcharge laws are relatively straightforward compared to other states. But that could be changing in the near future.
The state has a long history of attempted surcharge restrictions that businesses should understand, including a bill that’s currently making its way through legislation. While these haven’t directly impacted today’s laws (at least not yet), they could foreshadow changes down the road that could potentially hurt any North Carolina businesses currently adding a surcharge fee to credit card transactions.
Disclaimer: This information is for reference only, and it does not constitute legal advice. Consult with an attorney with any legal-specific questions.
Is Credit Card Surcharging Legal in North Carolina?
Yes, credit card surcharging is currently legal in North Carolina.
While there have been several attempts to restrict surcharges on credit card transactions in North Carolina, no existing state laws block credit card surcharging right now.
Upcoming Changes to Watch Out For in 2025
North Carolina House Bill 13 Charges for Credit, Charge, & Debit Cards was first introduced in January 2025. Unlike previous attempts that sought to ban surcharging entirely, this new 2025 proposes regulation rather than prohibition.
If the law passes, it will take effect on October 1, 2025.
The bill would cap surcharges to the lesser of:
- 3% of the total transaction, OR
- The actual processing fee paid by the merchant
There would also be new clear disclosure requirements both at the point of entry and point of sale for North Carolina merchants operating in person. Online merchants would need to disclose surcharge fees on the homepage and checkout page, and phone sales would require verbal disclosure.
Here’s another important contingency—merchants would not be allowed to surcharge transactions if they only accept credit cards. Violations could result in civil penalties of up to $500 per offense.
As of right now (June 2025), the bill has moved through multiple committees and received favorable reports, suggesting it has momentum. It’s currently under review by the state’s House Judiciary Committee, and its final verdict still remains uncertain.
Past Attempts to Restrict Surcharging in North Carolina
In addition to the 2025 bill mentioned above, there have been other attempts over the years to restrict surcharging in North Carolina. This reveals the state’s ongoing debate about consumer protections vs. merchant flexibility.
House Bill 209 (2023)
Titled the Consumer Credit Card Protection Act, North Carolina HB 209 aimed to prohibit merchants from imposing extra charges on credit card payments. This included businesses, local governments, state agencies, and landlords.
The bill proposed fines of up to $2,500 for first offenses and $5,000 for subsequent violations. But ultimately, it failed to pass.
House Bill 626 (2011)
This was the first major attempt to restrict surcharging in North Carolina. HB 626 was written to prohibit any person who sells or leases goods or services in North Carolina from charging a surcharge fee on customers who pay with a credit card in lieu of cash or check.
The bill would have been classified as a violation of the state’s unfair and deceptive trade practices, but it died in committee.
Can You Surcharge Debit Card Transactions in North Carolina?
No, debit card surcharging is illegal in North Carolina.
This is actually a federal law that’s enforced in all 50 states. Surcharges are not allowed on any debit or prepaid cards, even if the debit card is run as a credit transaction.
Read more — Surcharge Laws: A State-by-State Guide
Best Practices for Disclosure and Transparency
Even though North Carolina hasn’t officially passed its new surcharge restrictions, it’s still important for merchants to be proactive and follow best practices when adding surcharges to credit card transactions.
Not only will this help you reduce legal risks if the law passes, but it also helps you build trust with customers.
Here are some tips to help you stay complaint:
- Clearly display all surcharge fees before the transaction is processed. This should happen at the point of entry (store entrance or website homepage) and again at the point of sale or checkout.
- Match surcharge fees to your actual costs. If you’re only paying 2.5% to process card transactions, don’t tack on a 3% surcharge to customers paying by credit card.
- Include surcharge disclosures on receipts. Make sure your POS system separates the surcharge from the base price and lists it as a separate line item on every receipt.
- Train your staff. Your staff should be able to explain your surcharge policy clearly and accurately if any customers have questions.
- Avoid surcharging debit or prepaid cards. This is already illegal, so make sure you have checkpoints in place to ensure debit cards aren’t accidentally hit with extra fees.
Following these best practices can help you stay ahead of potential rule changes while reducing backlash from customers and regulators.
Future Considerations: How to Prepare For Changes to North Carolina’s Surcharge Laws
With HB 13 making its way through the North Carolina legislature, merchants should prepare now in case the bill becomes law later this year.
If it passes, the new rules will take effect on October 1, 2025, giving you a short window to make adjustments.
It’s in your best interest to be proactive right now. I think it’s best to just assume the law will pass and make all necessary adjustments ASAP. If it doesn’t pass, it’s not like any of the changes you make will harm you. So it’s better to be prepared instead of facing the alternative.
Even though surcharging is legal, North Carolina is a great example of how quickly things can change. Had the previous attempts to ban surcharging in NC gone through, merchants with existing surcharge programs would have been put in a difficult spot.
Consider the pros and cons of surcharging before you decide to implement a new policy. Just because it’s legal, it’s not necessarily a no-brainer decision for merchants—especially in a state that’s constantly trying to restrict how merchants can enforce surcharges.