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 surcharge | Prohibited — surcharges banned by statute |
|---|---|
| Maximum surcharge | N/A — surcharging prohibited |
| Debit & prepaid cards | Never — prohibited nationwide by federal rules and card networks, in every state |
| Cash discount / dual pricing | Legal — permitted in all 50 states with a compliant structure |
| State rule | Credit card surcharges prohibited (Conn. Gen. Stat. § 42-133ff) |
| Penalty | $500 per violation |
| Disclosure | N/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?
Is a cash discount program legal in Connecticut?
My processor added a 'non-cash adjustment' fee at my CT business — is that allowed?
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Surcharge rules in other states
Not legal advice. Surcharge and pricing laws change through legislation, court decisions, and enforcement positions. This page reflects our review as of July 2026 and is provided for general information. Confirm current requirements with your processor and qualified counsel before implementing any fee or dual-pricing program.