Utah has an interesting history with credit card surcharges. So if you’re a merchant operating in Utah or a consumer making purchases in this state, it’s important to know the current surcharge laws today (as they’re different from years past).
This guide breaks down everything you need to know about credit card surcharges in Utah.
Businesses can use this information to determine if, when, and how surcharges can be applied, while consumers can reference this to ensure they aren’t being ripped off.
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 it Legal to Surcharge Credit Card Transactions in Utah?
Yes, credit card surcharging is legal in Utah.
While Utah briefly banned credit card surcharging back in 2013, the law contained a sunset provision and expired the following year. Since then, Utah hasn’t enacted any new state-specific restrictions on surcharging beyond providing general consumer protection regulations.
In short, this means that merchants in Utah can add surcharge fees to credit card transactions—as long as they’re complying with federal laws and card network rules.
Is it Legal to Surcharge Debit Cards in Utah?
No, debit card surcharging is illegal in Utah.
This isn’t unique to Utah. In fact, it’s a federal restriction that applies in all 50 states. Merchants are prohibited from surcharging debit cards and prepaid cards nationwide (even if the debit card is run as a “credit” transaction).
Disclosure Requirements for Surcharges in Utah
While Utah technically doesn’t have any specific statutes dedicated to surcharges, the Utah Division of Consumer Protections has established surcharging guidelines under its general consumer protection authority.
According to these guidelines, businesses must do the following if they’re surcharging transactions paid with a credit card:
- Inform the customers of exactly how much they’re paying for goods and services (including any surcharges) before the customer makes a purchase.
- Clearly and conspicuously post notice of any surcharge fees that will be added to transactions.
- Be prepared to explain the purpose and amount of surcharges before accepting payments.
In Utah, it’s considered a deceptive trade practice if a business knowingly or intentionally charges consumers without authorization or misleads customers about the purpose of any fees they’re paying.
Notifying the customer after the fact is not sufficient to comply with Utah’s consumer protection laws (meaning you can’t just show the surcharge on a receipt after a payment has been accepted).
Maximum Allowable Surcharge in Utah
Since Utah doesn’t have a state-specific cap on surcharge amounts, merchants can default to federal guidelines—which limit surcharges to 4% of the transaction amount.
That said, each credit card network also has its own rules and guidelines that must be followed. While these technically aren’t laws and you won’t be in any legal trouble here, you could still be fined and penalized by the card networks.
Here’s what you need to know about this:
- Visa caps surcharges at 3%
- Mastercard caps surcharges at 4%
- Amex allows surcharges but requires they’re applied equally across all card brands
- Discover allows surcharges if they’re aligned with competing cards
If you put all of these together, you’re effectively limited to charging a maximum 3% surcharge fee (assuming you accept all four cards and want to follow the rules).
Prohibited Surcharging Practices Based on Utah’s Consumer Protection Laws
Again, while surcharges in Utah are legal, the Division of Consumer Protection has specific rules that prohibit deceptive practices related to surcharging.
The following practices would violate Utah laws:
- Misrepresenting the purpose of a surcharge: For example, you can’t call something a “credit card processing fee” if that fee doesn’t actually go towards recouping your processing costs (or if it exceeds your actual processing costs).
- Adding undisclosed surcharges or fees: Charging fees without notifying the consumer first is not allowed in Utah.
- Misleading consumers: You can’t misrepresent the nature or reason for any surcharges or additional fees that are not included in the base price of goods and services.
Violations of these guidelines can result in enforcement actions and penalties from Utah’s Division of Consumer Protection.
How Utah’s Surcharge Laws Have Changed Over Time
Utah’s approach to credit card surcharging is quite different from the surcharge laws in other states.
In April 2013, Senate Bill 67 was signed into law—prohibiting sellers in Utah from imposing surcharges on credit card transactions of $10,000 or less. However, this law had built-in sunset provision that automatically repealed the law on June 30, 2014.
Legislators chose not to extend it, and credit card surcharging has been legal in Utah ever since.
But this temporary ban has definitely caused some confusion for merchants and consumers alike. Even though surcharging has been legal in Utah for over a decade, some people still manage to find outdated information when they’re surcharging the web.
How to Report Illegal Surcharging in Utah
If you believe that a business in Utah is improperly applying surcharges or violating consumer protection laws, you can file a complaint directly with the Utah Division of Consumer Protection.
- Online: File a complaint
- Email: consumerprotection@utah.gov
- Call: (801) 530 – 6601
You can also drop a comment on this page to let us know about your experience with credit card surcharges in Utah. While we don’t offer any consumer services, our team will pass any information you provide to our clients operating in Utah.
Final Thoughts on Utah’s Surcharge Laws
Despite the temporary ban on surcharging years ago, Utah’s surcharge laws are pretty straightforward. It’s legal, as long as merchants follow federal guidelines and card network rules.
That said, just because surcharging is legal in Utah, it doesn’t mean you should automatically pass these fees to your customers.
Surcharging is a tricky subject, and research shows that consumers actively avoid businesses charging these fees. So you might get temporary relief to offset your costs, but recouping those few extra dollars could actually cost you customers in the long run.
I encourage you to weigh the pros and cons of surcharging before making an important decision like this.
Alternatively, you can negotiate with your processor to get a lower rate. Going this route is a win-win for everyone—as you can save money on credit card processing without passing the buck to your customers. If you need help with these negotiations, contact our team here at MCC for assistance.