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Surcharge & Cash Discount Rules · Connecticut

Credit card surcharges are banned in Connecticut. Here's what's legal instead.

Connecticut General Statutes § 42-133ff prohibits merchants from imposing credit card surcharges. Fines of $500 per violation. Cash discount programs remain legal.

Last reviewed July 2026 · Laws change — see note below

Prohibited

Prohibited — surcharges banned by statute

Connecticut General Statutes § 42-133ff prohibits merchants from imposing credit card surcharges. Fines of $500 per violation. Cash discount programs remain legal.

Connecticut at a glance

Credit card surchargeProhibited — surcharges banned by statute
Maximum surchargeN/A — surcharging prohibited
Debit & prepaid cardsNever — prohibited nationwide by federal rules and card networks, in every state
Cash discount / dual pricingLegal — permitted in all 50 states with a compliant structure
State ruleCredit card surcharges prohibited (Conn. Gen. Stat. § 42-133ff)
Penalty$500 per violation
DisclosureN/A for surcharges. Cash discount programs should post the card price with the cash discount clearly communicated.

What Connecticut merchants need to know

Connecticut is one of the few states where the answer is simply no: Conn. Gen. Stat. § 42-133ff prohibits credit card surcharges, the ban has survived where other states' bans were struck down, and violations carry a $500 fine each. If a processor or POS vendor has enabled 'surcharging' or a 'non-cash adjustment fee' at your Connecticut location, that's a compliance problem, not a feature.

What Connecticut law does permit is the discount structure: posting a price and offering a discount from it for cash payment. The distinction sounds like semantics but it's the entire legal difference — a fee added for card use is a prohibited surcharge; a reduction from the posted price for cash is a lawful discount. For CT merchants, program structure isn't a preference, it's the compliance line. This is exactly the situation a properly configured cash discount program is built for.

The cash discount alternative

Wherever surcharge rules get complicated, dual pricing doesn't: posting a card price and offering a discount for cash is legal in all 50 states when it's structured correctly — the posted price must be the card price, with cash receiving a true discount. The economics match a surcharge; the compliance profile usually beats it.

Connecticut is a pure cash-discount state: surcharges are banned outright, but a compliant dual-pricing program — card price posted, discount for cash — is fully legal and achieves the same cost recovery.

Common questions

Is it legal to charge a credit card fee in Connecticut?
No. Connecticut General Statutes § 42-133ff prohibits credit card surcharges, with fines of $500 per violation. Connecticut's ban remains in force.
Is a cash discount program legal in Connecticut?
Yes. Connecticut prohibits adding a fee for card use, but permits offering a discount from the posted price for cash payment. The program must be structured as a true discount — card price posted, cash price lower.
My processor added a 'non-cash adjustment' fee at my CT business — is that allowed?
If it functions as a fee added on top of the posted price for paying by card, it's likely a prohibited surcharge under Connecticut law regardless of what it's called. Structure matters: the posted price must be the card price, with cash receiving a discount.

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Surcharge rules in other states