Credit card surcharging is legal in West Virginia. The state doesn’t have any specific laws restricting surcharges on credit card transactions, which means businesses can default to federal regulations and card network rules if they choose to implement surcharge fees.
Here’s a summary of what you need to know about surcharging in West Virginia:
- Surcharging is legal on credit cards in WV, up to 4% of the transaction.
- There are no state-specific laws prohibiting or regulating surcharges for merchants.
- State and county government agencies are authorized to impose surcharges on certain transactions.
- Merchants must follow federal guidelines and card network rules to remain compliant.
- Debit card surcharging is illegal in West Virginia (as it is nationwide).
Beyond these key points, there’s still plenty more to understand about credit card surcharging in the Mountain State. So whether you’re a business owner looking to stay compliant or a consumer who wants to know their rights, read on to learn more.
Disclaimer: This information is for reference only. It’s 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.
Can Businesses in West Virginia Charge a Credit Card Surcharge?
Yes, businesses in West Virginia can legally add a surcharge fee to credit card transactions.
Since West Virginia doesn’t have state-level surcharging laws that govern private businesses, merchants in WV can default to the 4% maximum allowable surcharge imposed at the federal level.
However, it’s worth noting that the card network rules effectively cap most surcharges at 3% per transaction.
While violating the card network rules isn’t technically a criminal or even a civil offense, merchants can still face penalties, fines, and potentially lose their ability to accept certain payment methods.
Government Agencies in West Virginia Can Also Surcharge
West Virginia law actually authorizes state and local government entities to impose surcharges on credit card transactions. According to Chapter 12 Article 3A-6 of WV legal code, the State Treasurer is permitted to authorize spending units to “assess and collect a fee to recover or pay the cost of accepting a bank, charge, check, credit, or debit cards, from amounts collected.”
Similarly, WV Code Chapter 7 Article 5-2a allows county officers to set fees equal to the charge they pay for credit card processing. The statute does require those officers to disclose fee amounts to payors prior to the transaction, but it’s clear that surcharge fees are legal.
This means that residents of West Virginia may encounter surcharges when paying taxes or other government fees with a credit card.
We’ve encountered these types of laws in other states where surcharging is legal. The state doesn’t have laws about whether businesses can or can’t surcharge, but has legal statutes allowing government offices to legally surcharge certain transactions.
Federal Regulations and Card Network Rules Still Apply
Even though West Virginia doesn’t have state-specific surcharging laws, businesses must still comply with federal regulations and payment card network rules.
This means:
- Surcharges cannot exceed 4% of the transaction amount (federal law).
- Surcharge fees cannot be charged on debit cards or prepaid cards, even if processed as a “credit” transaction (also federal).
- Some card networks cap surcharges at 3% and others require uniform application across all cards, which effectively caps you at 3%.
- You must clearly inform customers about any applicable surcharge fees before completing the transaction.
- The surcharge must be itemized as a separate line item on all receipts.
I also recommend reading up on the FTC’s latest junk fees rule, which applies nationwide and impacts merchants in West Virginia who are considering adding a surcharge fee to credit card payments.
Just Because You Can Surcharge Doesn’t Mean You Should
Even though it’s 100% legal for businesses in West Virginia to add a surcharge fee, it doesn’t necessarily make this a no-brainer decision.
Consumers obviously don’t like surcharges, and any surcharge program you choose to implement just passes your costs to your customers.
This decision can do more than just make your customers pay more. It can actually result in lost business altogether, with customers choosing to actively avoid you compared to competitors.
It’s more about the principle than the cost itself. You’re better off raising your prices than hitting people with a surprise fee at checkout.
Customer sentiment aside, surcharge programs can be complicated even in states where surcharging is legal. If your staff isn’t properly trained to stop surcharging on debit cards, you can be hit with penalties, and the disclosure requirements can also be tough to navigate. This is especially true for WV-based businesses selling products online to customers in states where surcharging is illegal.
Here’s something else that you need to consider: surcharge laws are constantly changing.
What’s legal today could easily be illegal next month or next year. And if you’re relying on surcharges to recoup your processing costs, a change in the law could really hurt your business. Especially since you’re likely not staying on top of your processing fees while the surcharge program is on.
Your processor can take advantage of this and raise your rates over time.
So before you decide to move forward with a surcharge program, check out these resources to help you decide:
- Pros and Cons of Surcharging
- 11 Reasons Why Businesses Should NOT Surcharge Credit Cards
- 9 Scenarios Surcharging Makes Sense
How to Report Illegal Surcharging in West Virginia
If you’re a consumer in West Virginia and think a business is illegally surcharging transactions, you can report violations directly to the Office of WV Attorney General.
File a complaint online with the Consumer Protection Division or call 1-800-368-8808.
Violations may include surcharges on debit cards, surcharges that exceed 4% of the transaction, or improper disclosure of a surcharge fee.
And while we don’t offer any consumer-specific surcharges here at MCC, we’d still like to hear about your experience with surcharges in West Virginia. So drop a comment below if you’ve encountered these, and let us know how you feel about getting surcharged.
We’ll pass your comments along to businesses that we work with in your state.
Final Thoughts on West Virginia’s Surcharge Laws
West Virginia’s surcharge laws are among the most straightforward in the country.
Surcharging is legal, and merchants can simply default to federal guidelines since WV doesn’t have its own laws (other than explicitly stating surcharging is legal for government entities).
That said, don’t start surcharging your customers just yet without weighing your options.
Let our team help you reduce your processing costs first. While we can’t eliminate your fees altogether, we can find savings significant enough that you won’t need to burden your customers with extra costs.
Get a free audit to find out how much you can save today—without surcharging or changing providers.