Dual pricing laws by state
Cash discounting is permitted in all 50 states. Surcharging is a different animal, capped by the card networks and restricted in a few states. Here is the plain-English map.
Two words that get mixed up
Almost every "credit card fee" question comes down to two structures that sound alike and are treated very differently under the law.
- Cash discount. Your shelf price is the card price. Customers who pay cash get a lower price. You are giving money back, not adding a fee. This is the model behind Batchly's dual pricing, and it is recognized in all 50 states.
- Surcharge. Your shelf price is the cash price, and you add a fee when someone pays by card. This is the one the card networks cap and a handful of states restrict. Surcharges are generally limited to your actual cost of acceptance and typically capped around 3% to 4% under network rules, and they require clear disclosure at the door and the register.
Same math at the counter, different legal footing. That is why the structure you choose matters more than the number. For a deeper walkthrough, see dual pricing vs. surcharging.
Why cash discounting is the safer default
The processing fee on a card sale is 3.5% + $0.20. Someone covers it on every card swipe. Batchly's dual pricing lets you decide who, per sale: absorb it, pass it as a lower cash price, or split it. Because Batchly frames the difference as a discount for paying cash rather than a fee for paying by card, it sits on the broadly permitted side of the line. The register shows the cash price and the card price side by side, the customer picks, and the receipt makes the choice plain. Whether cash discounting is legal is covered in more depth on is cash discounting legal.
State-by-state reference table
Cash discount is marked permitted across the board, which reflects the widely published position. The surcharge column is hedged on purpose. Where a state has a history of restrictions, litigation, caps, or disclosure rules, the note says so and tells you to check current law. Do not treat any surcharge entry below as a settled statement of today's law.
| State | Cash discount | Surcharge | Notes |
|---|---|---|---|
| Alabama | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Alaska | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Arizona | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Arkansas | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| California | Permitted | Litigated / disclosure rules apply | Surcharge rules have been challenged in court. Check current law. |
| Colorado | Permitted | Allowed with a cap | State amended its rules; a per-transaction cap has applied. Check current law. |
| Connecticut | Permitted | Historically prohibited | Has had a statutory surcharge ban. Check current law before surcharging. |
| Delaware | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Florida | Permitted | Litigated / disclosure rules apply | Older surcharge ban was challenged on speech grounds. Check current law. |
| Georgia | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Hawaii | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Idaho | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Illinois | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Indiana | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Iowa | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Kansas | Permitted | Formerly restricted | Prior restrictions have shifted over time. Check current law. |
| Kentucky | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Louisiana | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Maine | Permitted | Historically prohibited | Has had a statutory surcharge ban. Check current law before surcharging. |
| Maryland | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Massachusetts | Permitted | Historically prohibited | Has had a statutory surcharge ban. Check current law before surcharging. |
| Michigan | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Minnesota | Permitted | Allowed with a cap | State statute caps surcharges and requires disclosure. Check current law. |
| Mississippi | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Missouri | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Montana | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Nebraska | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Nevada | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| New Hampshire | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| New Jersey | Permitted | Disclosure / display rules apply | Price-display and disclosure rules have applied. Check current law. |
| New Mexico | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| New York | Permitted | Price-display rules apply | Rules require showing the higher card price up front. Check current law. |
| North Carolina | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| North Dakota | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Ohio | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Oklahoma | Permitted | Formerly restricted | Prior restrictions have shifted over time. Check current law. |
| Oregon | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Pennsylvania | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Rhode Island | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| South Carolina | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| South Dakota | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Tennessee | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Texas | Permitted | Litigated / disclosure rules apply | Older surcharge restrictions have been challenged. Check current law. |
| Utah | Permitted | Formerly restricted | Prior restrictions have shifted over time. Check current law. |
| Vermont | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Virginia | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Washington | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| West Virginia | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Wisconsin | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
| Wyoming | Permitted | Generally allowed with disclosure | Confirm current state law and network caps. |
Table reflects the broad, widely published landscape as a starting point only. Entries marked litigated, restricted, or capped change often. The District of Columbia and U.S. territories are not shown; check those rules separately if you operate there.
What to confirm before you flip it on
- Whether your state currently restricts surcharging, and whether it treats a cash discount differently (it almost always does).
- Your processor's rules. Card network programs require registration and disclosure for surcharging, and cap the amount at your cost of acceptance.
- Signage. Cash-vs-card pricing generally needs to be posted where customers can see it before they buy.
- Your receipts. The customer's choice and the amount they paid should be clear on the printout.
Batchly handles the register mechanics for you: side-by-side pricing, a clean receipt line, and per-sale control over who covers the fee. The legal call on your state is still yours to make with counsel. If you want to see the numbers on a real basket first, run one through the card fee calculator, or compare setups on pricing.
Common questions
Is cash discounting legal in all 50 states?
Yes. A cash discount, where the posted price includes the card cost and cash-paying customers get a lower price, is a widely accepted model recognized in all 50 states. Confirm your setup with your processor and counsel before you turn it on.
What is the difference between a cash discount and a surcharge?
A cash discount starts from the card price and takes money off for cash. A surcharge starts from the cash price and adds a fee for paying by card. Surcharging is capped by the card networks and restricted or historically prohibited in a few states; cash discounting is broadly permitted.
Does Batchly use cash discounting or surcharging?
Batchly's dual pricing is built as a cash discount. The register shows a cash price and a card price side by side, and the customer chooses how to pay. That structure is why the model works cleanly across most states, but you should still verify your state and processor rules.
Which states restrict credit card surcharges?
The landscape shifts as laws are amended or challenged in court. States such as Connecticut, Massachusetts and Maine have had surcharge prohibitions, and several others have had rules narrowed, capped, or struck down. Treat the table on this page as general information and confirm current law with counsel.
Price it the compliant way, out of the box
Batchly's dual pricing runs as a cash discount, with side-by-side pricing at the register and a clean receipt. Start free, no card needed.
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