What is compliant surcharging

Surcharging is the practice of charging a customer a fee when they choose to pay by credit card instead of cash or another payment method. When done correctly, surcharging is legal and explicitly approved by Visa and Mastercard.

The key to compliance is transparency. Your patients must know the surcharge exists before they swipe the card. Signage, receipts, and checkout communication all need to follow specific rules. Summit handles every requirement so your practice stays in the clear.

46 states

Where surcharging is legal with proper disclosure. Prohibited in CT, ME, MA, and effectively blocked in NY.

Zero

Compliance violations across all Summit practices. We handle every requirement.

$16,200/yr

Average annual recovery per practice through compliant surcharging.

Surcharging vs. cash discount vs. dual pricing

Surcharging

Most transparent

You set a base price. Credit card customers pay the base price plus a disclosed surcharge fee. This fee is shown at checkout and on the receipt. Visa and Mastercard explicitly approve this method.

Fully approved by card brands

Cash Discount

Alternative approach

You set a cash price (lower). Credit card customers pay more. The difference is framed as a "discount" for paying cash instead of an "add-on" for cards. Legally distinct from surcharging but requires different signage.

Legal but more complex

Dual Pricing

Two-price model

You display two prices: a cash price and a card price. Patients choose how to pay. Gas stations have used dual pricing for years. Some card brands have specific terms around this model, so proper setup matters.

Requires careful implementation

State-by-state rules

Surcharging is legal in 46 states. Connecticut, Maine, and Massachusetts prohibit it outright. New York effectively blocks it due to disclosure rules that conflict with card network requirements. Several other states allow it with caps or conditions. Summit knows which rules apply to your state and configures your program correctly from day one.

Prohibited

CT, ME, MA, NY

Outright bans on surcharging. Cash discount programs are a compliant alternative in these states.

Restricted

CO, NJ, NV, SD, CA

Surcharging legal with specific conditions that vary by state.

Legal

46 states + DC

Permitted with proper disclosure. Capped at 3% or actual merchant cost per card brand rules.

How Summit keeps you compliant

Proper Disclosure

We provide signage templates and point-of-sale display language that meets Visa, Mastercard, and state requirements. Your patients see the surcharge before they pay.

Receipt Formatting

Every receipt shows the base charge, the surcharge amount, and the total. Formatted to comply with card brand requirements and state regulations.

Card Brand Notification

Visa and Mastercard require that processors notify them of surcharging programs. Summit handles this notification for you.

Frequently asked questions

Can dentists charge patients a credit card surcharge?

Yes, in 46 states. Surcharging is explicitly permitted by Visa and Mastercard. The requirements are straightforward: disclose the surcharge before the transaction, show it on the receipt, and follow state-specific rules if they exist. Summit handles all of this automatically so your practice stays compliant.

What states prohibit surcharging?

Connecticut, Maine, and Massachusetts prohibit credit card surcharging outright. New York effectively blocks it due to disclosure rules that conflict with card network requirements. If your practice is in a prohibited state, you can still recover card fees using a cash discount program. Summit can implement either approach based on your location.

Do patients complain about surcharges?

Most practices report minimal patient friction when surcharges are implemented with proper signage and transparency. Patients appreciate seeing exactly what they are paying and why. Practices that implement surcharges without clear communication or surprise patients at the register do experience pushback. Summit's compliance approach prioritizes transparency, which keeps patient relationships intact.

What's the difference between surcharging and cash discount?

Surcharging adds a disclosed fee to credit card transactions. You show the patient the base price and the card fee separately. Cash discount offers a lower price for non-card payment. You show the discounted cash price and the higher card price. Only surcharging is explicitly approved by Visa and Mastercard. Cash discount is legal in states where surcharging is prohibited, like Connecticut and Massachusetts.

What happens if I don't disclose the surcharge properly?

Non-compliance can result in chargebacks (customers disputing the charge with their bank), fines from card brands, state regulatory action, and patient complaints. Visa and Mastercard actively monitor surcharge compliance. Summit's system ensures your disclosures are correct at every transaction, protecting your practice from these risks.

Can I surcharge on all card types?

You can surcharge on Visa, Mastercard, and Discover. American Express has different rules that restrict surcharging. Summit's system applies surcharges only to compliant card types, so you never accidentally violate American Express terms.

Zero compliance violations. Zero guesswork.

Surcharging is legal, approved by card brands, and proven to work in dental practices. Let Summit handle the compliance so you can focus on your patients.

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