How do you avoid surcharges?
Asked by: Kaelyn Nolan | Last update: January 3, 2026Score: 4.4/5 (11 votes)
For financial surcharges, many merchants add a surcharge if you pay with a credit card, especially if it's a small transaction. To avoid this surcharge, you can use a debit card or pay in cash. Some surcharges arise due to being out of network.
How do you avoid a surcharge fee?
To avoid a credit card surcharge, you can pay with alternative methods such as cash, debit cards, or mobile payment apps. Some businesses also offer discounts for non-credit card payments, providing an incentive to choose other payment options that help avoid credit card surcharge.
In what states is it illegal to surcharge?
- Connecticut.
- Maine.
- Massachusetts.
- New York (as currently interpreted)
- Puerto Rico.
Is there a way to avoid convenience fees?
Use Alternative Payment Methods: Opt for traditional alternative payment methods like cash or checks, which often do not incur convenience fees. Choose Fee-Free Payment Options: Some businesses offer fee-free options for online payments or bill pay. Check for these alternatives.
Why am I paying surcharges?
A surcharge fee is an amount imposed on customers who pay with credit cards. It allows merchants to recover a portion of the processing costs incurred when accepting credit card payments. Surcharge fees are disclosed at the point of sale and are charged based on a percentage of the total transaction amount.
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Why do I get charged a surcharge?
Businesses incur costs for processing certain card payment types. Some businesses include these costs in the prices they charge for their products. Others pass the costs on as a surcharge for paying with the card.
What are examples of surcharges?
Examples of surcharges include ATM fees, fuel surcharges, broadcast TV surcharges, disposal fees, handling fees, hazardous waste fees, filing fees, tips and gratuities, processing fees, convenience fees, and checkout fees.
What is the difference between a convenience fee and a surcharge?
A surcharge is not a convenience fee. A convenience fee is levied by a merchant for offering customers the privilege of paying with an alternative non-standard payment method. Merchants can process convenience fees in all 50 states. A surcharge is levied by a merchant for customer purchases made with a credit card.
Is there a way to avoid dealer fees?
Most dealership fees are negotiable, though there are a few you can't avoid. If you're interested in a service or product, there is likely a third party option that will cost less. Try not to wrap additional costs into your loan to save on interest.
What is one way to avoid paying merchant fees?
There are many ways to avoid paying merchant fees, but one of the most effective is to use a payment processor that offers a low-fee or zero-fee option.
Can I pass on credit card fees to customers?
There are a few ways of legally passing on credit card fees to customers. Some are direct, and some are indirect. Adding a surcharge to cover the credit card fee is the more direct method while incentivizing cash payments is indirect.
What is the no surcharge rule?
The No-Surcharge Rule (NSR). The NSR means that a merchant charges at most the same amount for a payment card1 transaction as for cash.
Is it illegal to charge a surcharge on a debit card?
No. The ability to surcharge only applies to credit card purchases, and only under certain conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.
What states are surcharge illegal?
Surcharging is widely accepted in the US except in Maine, Massachusetts, Connecticut, and Puerto Rico. Illinois, Colorado, Georgia, Kansas, Texas, Nevada, New York, South Dakota, New Jersey, Minnesota, California, Florida, Oklahoma, Michigan, and Montana allow surcharging with certain contingencies.
Why are restaurants charging to use credit cards?
A credit card surcharge is an additional fee that a restaurant charges customers who choose to pay with a credit card. This fee is intended to offset the cost of processing credit card payments, shifting the burden from the business to the consumer.
How do you tip when there is a surcharge?
So if you see a 5% surcharge and initially planned on leaving a 20% tip, leave 15% of the pre-tax amount for your server. Whether restaurants choose to forgo tips and add a surcharge or raise the price of their food, an establishment's success is about more than money, according to Stredwick.
Why do dealers charge dealer fees?
Common Dealer Fees
Title and Registration Fees: These are set by the state and are based on the value and weight of the car. They cover the cost of registering the vehicle, purchasing a license plate, and assigning a title. Documentation Fee (Doc Fee): Dealers charge this fee to process paperwork.
How to refuse dealer add-ons?
Make sure the terms you agreed on match what's in the contract. Get answers about any extra fees you don't recognize and tell the dealer to remove any add-ons you don't want. Know your total cost, not just the monthly payment. Get it in writing and make sure it includes all charges, including any fees or add-ons.
Can you get rid of a doc fee?
Because the doc fee is often a separate paperwork processing line item in a car deal and a profit generator, convincing a dealer to strike it from the contract might seem easy. However, car dealers are universally stubborn about removing doc fees.
How can I avoid card surcharge?
Use cash where you can
The easiest way to avoid card surcharges is to pay by cash. While businesses can charge a surcharge for paying by debit or credit cards, they can't charge a surcharge for paying by cash. BCU Bank customers have fee-free access to hundreds of ATMs across Australia through the atmx network.
How do you get around a convenience fee?
Convenience fees are normally a flat fee or a small percentage of the total payment, but they can add up to a substantial sum if the payments are large or recurring. You may be able to avoid convenience fees by paying with cash or another form of payment.
Why am I being charged a surcharge?
A surcharge is an additional fee that a business imposes on a customer when they use a credit card for payment. This fee helps cover the costs associated with processing credit card transactions (such as merchant fees or payment gateway charges) by passing them down to the consumer.
Who will pay surcharge?
Surcharge is levied if the total income of the assessee exceeds the minimum amount prescribed and hence surcharge is payable by all the individuals or companies whose total income exceeds Rs. 50 lakh or Rs. 1 crore respectively.
What is a surcharge law?
In 1985, California passed a law (Civil Code section 1748.1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash.
How much is a surcharge fee?
A surcharge is an extra fee that will be added to the price of a purchase when payment is made using a credit card instead of cash. It's usually a percentage of the overall purchase cost and can range from 1% to 3%. The surcharge should be a percentage of the total and not a fixed amount.