Credit Card Surcharges on Rent: State Laws and Card Network Rules
Where a landlord may add a credit card fee to rent, the states that ban or cap surcharges, and Visa’s 3% cap and debit card rule.
By Seayora Editorial Team · Published · Facts checked · 4 min read
Short answer: In most states a landlord may add a surcharge when rent is paid by credit card, but Connecticut, Massachusetts and Maine prohibit surcharges, and Colorado and Minnesota cap them at 2% and 5%. Visa limits a surcharge to the lower of the merchant’s card processing cost or 3%, forbids surcharging debit and prepaid cards, and requires 30 days’ notice to the processor. New York and New Jersey add disclosure rules and limit the surcharge to the actual cost.
Key takeaways
- Connecticut, Massachusetts and Maine prohibit card surcharges; Maine’s ban covers debit cards too.
- Colorado caps a surcharge at 2% and Minnesota at 5%, each with disclosure requirements.
- New Jersey limits a surcharge to the actual cost of processing; New York requires the total card price to be posted.
- Visa: credit cards only, never debit or prepaid, no more than the merchant’s cost or 3%, disclosed at entry, at checkout and on the receipt.
- A discount for paying by bank transfer is treated differently from a surcharge in several of these statutes.
Can a landlord charge a fee for paying rent by credit card?
Usually, yes. Visa’s own guidance says merchants “in most States in the U.S. and U.S. territories may add a surcharge to credit card transactions, subject to certain limitations” (Visa U.S. Merchant Surcharge Q and A). The limits come from two places: state law, and the card networks’ rules, which bind every merchant that accepts the card whatever the state says.
Which states prohibit or cap credit card surcharges?
| State | Rule | Statute |
|---|---|---|
| Connecticut | No person may impose a surcharge for using a particular method of payment | Conn. Gen. Stat. § 42-133ff |
| Massachusetts | No surcharge on a cardholder who uses a credit card; cash discounts allowed | M.G.L. c. 140D, § 28A |
| Maine | No surcharge for using a credit or debit card; a discount is not a surcharge | 9-A M.R.S. § 8-509 |
| Colorado | Surcharge capped at 2%, with signage | C.R.S. § 5-2-212 |
| Minnesota | Surcharge capped at 5%, disclosed before the sale | Minn. Stat. § 325G.051 |
| New Jersey | No more than the actual cost to process the card, disclosed in advance | N.J.S.A. 56:8-156.2 (P.L. 2023, c. 146) |
| New York | Post the total card price; no more than the card company charges the business | N.Y. Gen. Bus. Law § 518 |
The wording matters. Connecticut’s statute, as amended in 2024, says “no person may impose a surcharge on any transaction,” and defines a surcharge as any fee “for the privilege of using a particular method of payment” (Conn. Gen. Stat. ch. 739; Department of Consumer Protection summary). Massachusetts bars a surcharge on a cardholder “who elects to use a credit card in lieu of payment by cash, check or similar means” (M.G.L. c. 140D, § 28A). Maine’s ban covers credit and debit cards (9-A M.R.S. § 8-509).
Colorado allows a surcharge of no more than 2% of the payment, with signage (C.R.S. § 5-2-212; Justia’s copy, as Colorado publishes its statutes in PDF). Minnesota allows up to 5%, and on a website the surcharge must be posted “during the sale, at the point of sale, on the customer order summary, or on the checkout page”; a violation carries a civil penalty of up to $500 and a refund of the surcharge (Minn. Stat. § 325G.051).
New Jersey bars a surcharge “greater than the actual cost to the seller to process the credit card payment” and requires it to be disclosed before the customer incurs the charge (P.L. 2023, c. 146). New York requires a seller that surcharges to “clearly and conspicuously post the total price for using a credit card,” caps the surcharge at what the card company charges the business, and sets a civil penalty of up to $500 per violation (N.Y. Gen. Bus. Law § 518).
What do the card networks require?
Visa requires a merchant that surcharges to notify its acquirer at least 30 days before starting, to surcharge credit cards only (“debit cards and prepaid cards cannot be surcharged”), to keep the surcharge at or below its merchant discount rate for that card or 3%, whichever is lower, and to disclose it at the point of entry, at the point of sale and on every receipt (Visa Q and A; Visa merchant surcharging). Because a debit card cannot be surcharged, a rent platform that adds a card fee has to know whether the card is credit or debit before it quotes the total.
Is a discount for paying by bank transfer the same as a surcharge?
Not under these statutes. Massachusetts expressly allows a discount to induce payment by cash or check; Maine says “a discount or reduction from the regular price is not a surcharge”; and Minnesota excludes a discount offered to all customers and clearly disclosed. Whether a price is a surcharge or a discount depends on which price is the regular one, so a landlord in one of these states should get advice before restructuring rent around the payment method.
How does Seayora handle card fees on rent?
Seayora applies the rule for the state where the home is. For a property in Connecticut, Massachusetts or Maine it does not offer the card option with a surcharge, and in Colorado and Minnesota it turns the card option off for a payment whose fee would exceed the cap rather than quietly absorbing the difference. A card the processor reports as debit or prepaid is charged without a surcharge, and the total is shown before the tenant pays. Bank transfers carry no fee to the tenant.
Frequently asked questions
Can I charge a convenience fee for rent paid by debit card?
Visa’s rules say debit and prepaid cards cannot be surcharged, and Maine’s statute prohibits surcharging debit cards. Treat debit as a card you cannot add a fee to.
Is a 3% fee on rent paid by credit card legal?
In many states, yes, if it does not exceed your actual card cost and is disclosed. It is not allowed in Connecticut, Massachusetts or Maine, it exceeds Colorado’s 2% cap, and New Jersey and New York limit it to what processing actually costs you.
Do I have to tell my processor before surcharging?
Visa requires notice to the acquirer at least 30 days before a merchant starts surcharging.
Sources
- U.S. Merchant Surcharge Q and A, Visa
- Merchant credit surcharging, Visa
- Conn. Gen. Stat. Chapter 739, including § 42-133ff, Connecticut General Assembly
- What is the Connecticut surcharge law?, Connecticut Department of Consumer Protection
- M.G.L. c. 140D, § 28A, Cardholder discounts; surcharges, Massachusetts Legislature
- 9-A M.R.S. § 8-509, Credit card and debit card surcharge prohibition, Maine Legislature
- C.R.S. § 5-2-212, Surcharges on credit transactions (unofficial copy), Justia
- Minn. Stat. § 325G.051, Surcharges on credit cards, Minnesota Revisor of Statutes
- P.L. 2023, c. 146 (N.J.S.A. 56:8-156.1 and 56:8-156.2), New Jersey Legislature
- N.Y. Gen. Bus. Law § 518, Credit card surcharge notice requirement, New York State Senate
How Seayora helps
Online rent collection: Bank transfers free to the tenant, card payments with the state’s surcharge rule applied, and receipts issued when rent settles.
This article is general information, not legal advice. Landlord-tenant law varies by state and city and changes often, so check the current rule for your property and talk to an attorney before acting on a dispute.
How we write and check these guides: editorial standards.
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