Guide · Getting paid
Can a contractor charge a credit card fee?
Often yes, on credit cards only, within a cap, with notice, and not in every state. Often the simpler move is to price it in.
In most states a contractor can add a surcharge to credit card payments, but there are rules. Visa caps it at 3% or your actual processing cost, whichever is lower; surcharges aren't allowed on debit or prepaid cards; you have to tell your payment processor in advance and disclose the fee to the customer before they pay. Connecticut, Massachusetts and Maine ban surcharges. Colorado caps them at 2% or your actual cost. New York requires you to post the total card price, including the fee. A cash or bank-transfer discount, or simply building the cost into your prices, avoids most of this.
The card network rules
- Credit cards only. Surcharges aren't allowed on debit or prepaid cards, even when a debit card is run as credit.
- A cap. Visa's limit for U.S. merchants is the lower of 3% or what you actually pay to process that card. Mastercard's published cap is higher, so staying at or under 3% and under your real cost keeps you inside both.
- Notice to your processor. Visa requires merchants to notify their acquirer at least 30 days before they start surcharging. Ask your processor what it needs.
- Disclosure. The customer has to be told about the fee before paying, and it should show as its own line on the receipt.
State rules we checked
| State | Rule | Source |
|---|---|---|
| Connecticut | Surcharges banned. A discount for paying cash is allowed if it's clearly disclosed before the sale and the card price is the listed price. | CT Dept. of Consumer Protection |
| Massachusetts | "No seller in any sales transaction may impose a surcharge on a cardholder." | M.G.L. c. 140D § 28A |
| Maine | Sellers may not surcharge credit or debit card payments. A discount from the regular price is not a surcharge. | 9-A M.R.S. § 8-509 |
| Colorado | Allowed on credit cards up to 2% of the total or your actual processing fee. Post a sign (or show it online before checkout), list it separately on the receipt, and never on cash, check or debit. | C.R.S. § 5-2-212 |
| New York | Allowed up to what the card company charges you, but you must clearly post the total price for paying by card, including the fee, or show cash and card prices side by side. | NY Dept. of State (GBL § 518) |
Checked November 4, 2026. Other states have surcharge laws on the books, some of which courts have limited, and they change. This is not legal advice; check your state's attorney general or consumer protection office before you add a fee.
What a 3% fee is actually worth
On a $2,400 job paid by card, a typical processing fee of 2.9% + 30¢ is $69.90. A surcharge covers that, but it also turns a $2,400 price into a $2,472 price at the moment the customer is deciding how to pay. Some customers will pay by check instead and you'll wait a week for it. Others will remember the fee more than the work.
The simpler alternatives
- Build it into your rates. If most customers pay by card, the processing cost is a cost of doing business, like fuel. Add it to your hourly rate or markup and never mention it.
- Offer bank payment. Bank transfers cost far less to process. On Stripe, a bank payment is 0.8% with a $5 maximum, so that same $2,400 job costs $5 to collect.
- Offer a cash or bank discount. Most states that ban surcharges allow a discount for paying another way, if it's disclosed before the sale and offered to everyone.
How Settle handles card fees
Settle doesn't add a card fee to your invoices. Customers pay from the link by card, Apple Pay or bank. Card payments cost Stripe's standard 2.9% + 30¢ and bank payments 0.8% (maximum $5), both paid to Stripe; Settle adds nothing and the money lands in your own Stripe account. If you want to cover processing costs, put them in your prices.
Is it legal for a contractor to charge a credit card fee?
In most states, yes, on credit cards only, within card network caps (Visa: 3% or your actual cost, whichever is lower), with notice to your processor and disclosure to the customer. Connecticut, Massachusetts and Maine ban surcharges, and Colorado and New York set their own limits.
Can I charge a fee on debit cards?
No. Card network rules don't allow surcharges on debit or prepaid cards, and Colorado's law also bans them on debit.
How much can I charge for paying by credit card?
No more than your actual processing cost and no more than 3% under Visa's rules. Colorado caps it at 2% or your actual cost, and New York at what the card company charges you.
Is a cash discount the same as a surcharge?
No. A discount lowers the regular price for paying another way; a surcharge raises it for paying by card. Several states that ban surcharges allow discounts if they're disclosed and offered to everyone.
Sources
- ArentFox Schiff: Visa reduces its merchant surcharge cap to 3%
- Connecticut Department of Consumer Protection: surcharge law
- Massachusetts General Laws c. 140D § 28A
- Maine Revised Statutes 9-A § 8-509
- Colorado Revised Statutes § 5-2-212
- New York Department of State: new surcharge law
Get paid by card or bank, to your own Stripe account.
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