Can your state recover credit card fees? That is up for debate in many states and the best option is to call your credit card processor.
**This is YOUR responsibility to confirm the rules in your state - noting that the fee percentage you charge must comply with the rules for the state that your business resides in and not the bill to address of the customers you are billing the fees to*
The below information was provided by NMI (gateway processor) and is purely informational based on the rules and regulations in place at the time this was written and is subject to change without notice.
1. States that do not allow businesses that reside within that state to charge surcharge fees: Massachusetts, Connecticut, Maine, and Oklahoma
2. When assessing a Surcharge (in accordance with card brand requirements), please also consult your legal counsel as needed, to ensure that Surcharging is permitted by law as it varies by jurisdiction and may not be allowed.
3. The state of Colorado has a 2% Surcharge fee maximum
4. The states of New York and California do allow Surcharging, but there are additional requirements to consider:
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In NY, the highest price, including any surcharge fee, needs to be listed. A cash discount price can also be listed, but when the merchant is selling an item, it would be on them to list the total price on that item. The point of sale requirement is not enough in NY, but the CEO Juice portal still provides that notification.
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In CA, fees cannot be mandatory. That means they cannot charge a surcharge fee without offering another option to avoid that fee. Again, CEO Juice supports that compliance by offering the ability to process both debit cards and ACH, which do not have any surcharge fees applied.
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