Ohio Credit Card Surcharge Laws

Businesses and residents alike should both be aware of the credit card surcharge laws in Ohio. Merchants must know these laws to ensure compliance and avoid legal penalties, while consumers should stay educated so they don’t get ripped off.

Disclaimer: This information is for reference only, and it does not constitute legal advice. Consult with an attorney with any legal-specific questions.

Is it Legal to Surcharge Credit Card Transactions in Ohio?

Yes, credit card surcharging fees are legal in Ohio.

Ohio actually has some of the most lenient surcharge laws in the country. If you compare these laws to other states where surcharging is legal, Ohio doesn’t even require businesses to clearly post written notice of the surcharge on credit card transactions.

Section 113.40 of Ohio House Bill 33 does say that any notice of a surcharge must be stated for financial transactions related to state expenses—like taxes, assessments, fines, and any other fees owed to state officials or state entities. 

But this language doesn’t appear in other Ohio state laws for other businesses and non-state entities.

That said, card networks typically require written disclosure if you’re surcharging credit card transactions. So while you technically won’t be in violation of Ohio state law if you don’t post notice of the surcharge, you could be subject to penalties from the card networks.

What About Debit Cards?

Debit card surcharging is illegal in all 50 states, including Ohio.

This is a federal law that is part of the 2010 Durbin Amendment of the Dodd-Frank Consumer Protection Act. It applies to both debit cards and prepaid debit cards. 

What About Convenience Fees or Service Fees?

Convenience fees and service fees are not the same as surcharge fees. 

A convenience fee is typically a flat fee imposed by a business when a consumer pays using a non-standard payment method. Service fees are unrelated to the payment method or transaction environment, and apply specifically to additional work provided by the business—like a delivery fee or setup fee. 

Convenience fees, service fees, and surcharge fees are all legal in the state of Ohio. 

How to Legally Impose a Surcharge Fee on Credit Cards in Ohio

While surcharging is legal in Ohio, there are still rules and regulations that you need to follow to remain compliant. Here’s what you need to know:

• Federal law limits credit card surcharges to 4% max.
• Card brands, like Visa, limit surcharges to 3% of the transaction.
• It’s 100% illegal to surcharge debit card transactions and prepaid cards in Ohio.
• Posting notice of the surcharge isn’t a legal requirement in Ohio or at the federal level, but the card networks require clear disclosure to your customers.

It’s important for you to understand the key differences between “laws” and “rules” when you’re applying surcharges.

For example, let’s say you wanted to impose a 4% surcharge on credit card transactions in Ohio. It’s perfectly legal in the eyes of the state and federal government.

However, Visa’s surcharge rules clearly state that surcharges cannot exceed 3%. So while you won’t be fined or jailed by any government entity for charging a 4% surcharge, Visa can penalize you for violating their rules. These penalties can range from $50,000 to $1 million, and you could even lose your right to accept Visa cards.

Furthermore, all the card networks essentially say that surcharging rules must be applied consistently across all brands—meaning you couldn’t impose a 3% surcharge on Visa cards and then a 4% fee on Amex cards.

So while you can “legally” charge a credit card surcharge fee up to 4% of the transaction in Ohio, you’re effectively capped at 3% to remain compliant with card brand rules. 

How to File a Complaint For Surcharge Violations in Ohio

If you suspect a business is illegally surcharging credit or debit card transactions in Ohio, you can file a complaint directly to the Ohio Attorney General’s office. 

Navigate to the Services for Consumers page and click the “File a Complaint” option to submit your form. 

Surcharging Alternatives For Ohio Merchants

Just because it’s legal to surcharge credit card transactions in Ohio doesn’t necessarily mean that you have to do it or you should. Think about your relationship with your customers and ask yourself whether you want to burden them with additional fees at the risk of potentially losing them.

If you don’t want to surcharge credit card transactions, you could always offer cash discounts as an alternative option. 

Additionally, you should look for ways to lower your credit card processing fees. While a surcharge can help offset these costs, negotiating your rates directly with your processor can be equally effective, and you won’t have to pass fees to your customers.