Navigating Pennsylvania’s credit card surcharge laws can feel a bit daunting for people on all sides of the fence. Businesses are trying to figure out what’s actually legal to impose, while consumers want to make sure they aren’t being ripped off when a business adds a surcharge to their transaction.
Plus, recent legislative attempts to amend Pennsylvania’s swipe fee laws have created some confusion and misinformation about what’s currently legal and illegal.
Regardless of why you’re interested in PA’s surcharge laws, this guide has all the answers you’re looking for.
Disclaimer: This information is for reference only, and it does not constitute legal advice. Consult with an attorney for any legal-specific questions.
Credit Card Surcharge Fees Are Legal in Pennsylvania
Merchants in Pennsylvania can legally surcharge credit card transactions. There are no state-specific restrictions, so businesses can default to federal laws for guidance.
Surcharge fees are legal up to 4% of the transaction amount, but can only be applied to credit cards. Debit card surcharging is illegal nationwide.
While surcharging is legal, merchants still need to properly disclose any surcharge fees to remain compliant. This typically means:
- Posting a notice of the surcharge fee at the building’s entrance.
- Another notice at the register or point of sale.
- Itemizing receipts to show the surcharge fee and its amount.
- A clear and accurate description of the surcharge’s purpose.
Basically, you need to be as transparent as possible so your customers are fully aware that paying with a credit card will cost extra.
Taking steps to comply with the FTC’s junk fee rule should be sufficient in terms of surcharging disclosures for Pennsylvania businesses.
What You Can and Cannot Surcharge in Pennsylvania
In Pennsylvania, businesses can legally add surcharge fees to:
- Credit card transactions
- Corporate credit cards
- Business credit cards
You cannot surcharge:
- Debit cards (even if they’re processed as a “credit” transaction)
- Prepaid cards
- EBT, SNAP, and government benefit cards
- ACH transactions
Pennsylvania’s Recent Attempt to Regulate Surcharging
While Pennsylvania currently allows surcharging, the state came close to implementing significant changes in 2024.
House Bill 2394, commonly referred to as the “swipe fees” bill, attempted to prohibit financial institutions from charging interchange fees on the sales tax portion of credit and debit cards.
Swipe fees ultimately increase costs for customers, as businesses raise prices or collect surcharge fees to help offset these expenses.
While the bill quickly made progress, it was ultimately “laid on the table” on September 23, 2024 (effectively ending its chances for passing during the 2024 legislative session).
Why HB 2394 Matters (Even Though it Didn’t Pass)
Even though HB 2394 didn’t become law, it highlights the growing attention from lawmakers on credit card processing fees.
We’ve seen other states change surcharge laws in recent years, and this could foreshadow changes to Pennsylvania laws in the near future.
Illinois passed a similar law banning tax on interchange that goes into effect in July 2026. California recently amended its stance on surcharging, forcing businesses to include all mandatory fees in the advertised price.
Similar changes could be right around the corner for Pennsylvania.
Read More: Credit Card Surcharge Laws by State
How to Prepare For Potential Changes to Pennsylvania’s Surcharge Laws
For businesses, the last thing you want is to be caught with your guard down if a new law passes in Pennsylvania that regulates if and how you’re able to implement surcharge fees.
Here are some tips to help you stay ahead of potential changes:
- Don’t rely on surcharging to recoup costs associated with processing fees.
- If your business doesn’t currently surcharge, probably best to avoid it altogether.
- If you’re currently surcharging credit card transactions, look for an exit path.
- Make sure all of your POS equipment, terminals, and software are up to date and can easily be changed to comply with new laws.
- Explore alternative options to surcharging that won’t pass costs to your customers.
Credit card processing fees shouldn’t be forcing you to make such drastic decisions that could result in fines or penalties for violating state laws.
While you can’t eliminate these costs altogether, you can take steps to reduce processing fees—potentially saving you tens of thousands of dollars every month.
Most businesses don’t realize that credit card processing fees are negotiable. And there’s a good chance your processor is overcharging you. Our team here at MCC can help you identify overages, hidden costs, and inflated rates, and then negotiate better terms with your existing provider.
It’s a win-win, since you’ll save money without changing providers and you won’t have to burden your customers with extra fees at checkout.
How to Report Surcharge Violations in Pennsylvania
If you think that a merchant is illegally surcharging consumers, you can file a compliant online directly with the Pennsylvania Attorney General’s office.
That’s the fastest and easiest way to report surcharges that exceed 4%, debit card surcharging, improper disclosures, and other surcharging violations.
You can also mail complaints to:
Office of Attorney General
Bureau of Consumer Protection
15th Floor, Strawberry Square
Harrisburg, PA 17120
We also encourage you to drop a comment on this page to let us know about your experience with surcharges in the state. We don’t offer any consumer-specific services, but we’ll pass these comments along to businesses we work with in Pennsylvania.
Final Thoughts on Pennsylvania Surcharge Laws
Just because you can legally surcharge credit card transactions in Pennsylvania, it doesn’t mean that you should.
Aside from consumers hating extra fees and the chance of losing them over a few bucks, you also need to consider how future legislation could change your operations.
I think that the introduction of HB 2394 should be an eye-opener for Pennsylvania businesses. While nothing has changed yet, you need to recognize that lawmakers understand how credit swipe fees increase costs for consumers, and future bills may attack this from another angle.
If they can’t eliminate taxes on interchange fees, it’s a real possibility that they’ll attempt to ban or restrict surcharging altogether.