Prohibited — surcharges banned by statute
Massachusetts General Laws ch. 140D § 28A makes it unlawful to impose a surcharge on customers paying by credit card. The ban has been upheld in court. Cash discount programs remain legal.
Massachusetts 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 (Mass. Gen. Laws ch. 140D, § 28A(a)) |
| Penalty | Civil liability; actively enforced |
| Disclosure | N/A for surcharges. Cash discount programs should post the card price with the cash discount clearly communicated. |
What Massachusetts merchants need to know
Massachusetts bans credit card surcharges under M.G.L. ch. 140D § 28A, and unlike the bans in Florida, California, and Texas that were gutted in federal court, the Massachusetts prohibition has been upheld when challenged. It is actively enforced. A Massachusetts merchant adding a percentage fee for card payment — whatever the receipt calls it — is violating state law.
The same statute framework that bans surcharges expressly contemplates discounts for cash, which is why the cash discount structure is the standard cost-recovery approach for Massachusetts merchants. The compliance requirement is real, though: the posted price must be the card price. Programs that post a 'cash price' and add a fee at the register for cards are surcharges wearing a costume, and Massachusetts is one of the states most likely to treat them that way.
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.
Massachusetts, like Connecticut, is a cash-discount-only state — the ban is enforced, so the only compliant cost-recovery structure is a true dual-pricing program with the card price posted.
Common questions
Is it legal to charge a credit card fee in Massachusetts?
Is a cash discount program legal in Massachusetts?
Can I surcharge debit cards in Massachusetts?
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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.