Businesses in Virginia have historically been able to add surcharge fees to credit card transactions without any state-specific restrictions, until now.
New laws just went into effect, changing how surcharge fees are regulated in Virginia.
- Surcharging credit card transactions is still legal.
- New disclosure requirements took effect on July 1, 2025.
- Non-compliance can carry a civil penalty of up to $2,500 per violation and up to $5,000 per subsequent violation.
Read on to learn more about Virginia’s new credit card surcharge laws to ensure you avoid these hefty penalties.
Disclaimer: This information is for reference only, and it does not constitute legal advice. Consult with an attorney for any legal-specific questions.
Is it Legal for Businesses in Virginia to Surcharge Credit Card Transactions?
Yes, surcharging credit cards is legal in Virginia.
There are currently no active state laws that prohibit surcharges or restrict how much of a surcharge fee merchants can pass on to their customers. This means that merchants can default to federal regulations, capping credit card surcharge fees at 4% of the transaction amount.
Both merchants and consumers alike should be aware that it’s illegal to surcharge debit cards in Virginia (as it is in all 50 states).
While credit card surcharging is legal, Virginia merchants need to comply with new transparency requirements that change how surcharges must be disclosed to their customers.
New Virginia Surcharge Law Effective July 2025
Virginia’s new surcharge law requires sellers in Virginia to clearly and conspicuously display the total price of a transaction, including all mandatory fees or surcharges.
Senate Bill 1212 went into effect on July 1, 2025, after being signed into law on May 2nd by Governor Glenn Youngkin. It’s part of the new requirements of Virginia’s Consumer Protection Act, which is all about transparency and disclosure.
This means that businesses can no longer just post a sign about surcharges. Any surcharge fees must be included in the advertised price.
SB 1212 is a companion bill to HB 2515. They are essentially identical, both passed, and both went into effect on July 1, 2025.
Exceptions to Virginia’s New Disclosure Requirements
The new surcharge law in Virginia exempts several types of businesses, including:
- Car and motor vehicle dealers
- Natural gas and electric utility companies
- Telecommunication service providers
- Airlines and air transportation carriers
- Real estate settlement services
It’s worth noting that taxes and other fees imposed by government entities are NOT part of Virginia’s definition of “surcharges and other mandatory fees” under this new law.
Disclosure Requirements For Food Delivery
Virginia SB 1212 also contains specific provisions about food delivery platforms. It says that when customers view items or select a vendor, there needs to be a clear disclosure of any additional fees or surcharges (flat-fee or percentage).
Then prior to checkout, but after items have been selected to purchase, there must be an itemized subtotal of all prices to show all additional fees and surcharges included in the total cost.
Penalties For Non-Compliance
Failing to properly disclose surcharge fees is considered a violation of Virginia’s Consumer Protection Act.
Any business that willfully violates these rules is subject to civil penalties of:
- Up to $2,500 per violation
- Up to $5,000 per subsequent violation
- Up to $500 in damages to any person who seeks private damages
These penalties can be expensive, and they’re significantly higher compared to what we typically see as applied in other states (usually up to $500 per violation). This is also one of the only instances we’ve seen where the state’s legislation includes verbiage on private individuals seeking damages against a business for non-compliance.
The Case Against Surcharging in Virginia
While Virginia law allows merchants to legally surcharge credit card transactions, it doesn’t automatically mean that this is the right decision for your business.
The new disclosure requirements make surcharging even more complex, and even prior to the law taking effect, surcharge fees were always unappealing to customers.
Consider these factors before you implement a surcharge program:
- Customer Experience: Even with disclosure, surcharges frustrate customers. Many people still view them as “hidden fees” (even if they’ve been notified upfront).
- Competitive Disadvantage: Your competitors down the road who aren’t surcharging are instantly seen as a better option for cost-conscious customers.
- Implementation Complexity: Between federal laws, card network requirements, and Virginia’s new disclosure law, maintaining compliance requires ongoing attention and can be costly to maintain.
- Administrative Burden: To clearly and conspicuously display surcharges in the total price requires you to change signage, POS systems, websites, price lists, menus, and essentially every customer-facing pricing material.
The main reason why businesses set up surcharge programs is to recoup the costs associated with rising processing fees.
But you have other options. Check out our guide on the top surcharging alternatives, which describes all the ways you can save money on credit card processing without passing fees to your customers or switching providers.
You’ll find that these cost-saving strategies are often more effective and can even result in higher savings than a surcharge program.
How to Report Illegal Surcharging in Virginia
If you encounter a business in Virginia that is illegally surcharging transactions, you can report violations online directly to the Attorney General’s office.
Common violations would include:
- Surcharges that exceed 4% of the transaction amount.
- Surcharges on debit cards or prepaid cards.
- Failing to properly disclose surcharge fees in the total price.
While we don’t offer any consumer services here at MCC, we’d still love to hear your opinions on surcharging in the state of Virginia.
Drop a comment on this page to let us know if you’re being surcharged and how you feel about it. We’ll pass this information along to any businesses that we work with in your state.
Final Thoughts
Virginia’s new surcharge laws are a prime example of how quickly things can change for businesses. The bill was introduced in January, signed into law in May, and went into effect in July.
It’s tough to rely on surcharging to offset credit card processing costs, especially with new legislation constantly passing in favor of consumer protections.
And this was just about disclosure. Had it been an outright ban, businesses would have had little time to react and change their operations.
We’ve seen this happen in other states where surcharging was once legal and then became banned or more heavily regulated. If you were relying on that extra 3% or 4%, now you’re stuck with high processing fees that you should have been taking steps to reduce in the first place.
Instead of surcharging your customers, contact our team here at MCC. We’ll help you get the best possible rate on processing, without switching providers. So regardless of local laws, your processing fees won’t continue to rise and crush your profits.