Platform Fees Compliance Guidelines
Overview
A platform fee (also called a surcharge) is a percentage-based charge added to a transaction when a customer pays with a credit card. It allows businesses to recover some of the costs associated with accepting credit card payments.
Platform fees differ from a flat convenience fee, which is typically a fixed dollar amount rather than a percentage, and from a cash discount, where the posted price already includes the cost of card acceptance, and customers who pay in cash or another method receive a reduction.
Platform fee programs must comply with card network requirements and applicable federal and state laws. Before implementing or updating a platform fee program, review the guidelines below and verify that they apply to your business.
Important Considerations
Keep the following in mind before implementing a platform fee program:
- Platform fees may only be applied to credit card transactions.
- Platform fees cannot be applied to debit cards, prepaid cards, or debit cards run through as “credit.”
- ACH (bank transfer) payments are not subject to Visa or Mastercard platform fee rules. Any fees applied to ACH transactions must comply with applicable laws, regulations, and payment processing requirements.
General Compliance Requirements
The guidelines below reflect general platform fee requirements as of mid-2026. Because card network rules and state regulations may change, always verify the current requirements before implementing or updating your platform fee program.
1. Do Not Charge More Than Your Cost of Acceptance
The platform fee cannot exceed your actual cost of accepting credit card payments. Platform fees are intended to recover processing costs, not generate additional revenue.
For example, if your business’s cost of accepting a credit card is 2.2%, the platform fee charged to the customer cannot exceed that amount, even if the applicable cap (state or network) allows a higher amount.
2. There Is a Nationwide Cap of 3% Under Visa Rules
Card network rules limit percentage-based surcharging to a maximum of 3% nationwide, subject to applicable state restrictions and requirements.
3. States With A Lower Cap
Some states impose lower maximum platform fees.
Before enabling platform fees, verify the requirements in every state where your business operates. The following are examples of state-specific restrictions:
- Colorado and California: Percentage-based fees are capped at 2%, regardless of the card brand being processed. Platform fees should not be applied to the sales tax portion of a transaction.
- Illinois: Platform fees are capped at 1%, regardless of the card brand being processed.
Note: State laws and regulations regarding platform fees may change. Some states may consider additional restrictions on how these fees can be applied, including whether they can be charged on sales tax. Verify current requirements before implementing or modifying a platform fee program.
4. States Where Platform Fees Are Not Permitted
Platform fees are not permitted in the following states and territory:
- Connecticut
- Massachusetts
- Maine
- Puerto Rico
Businesses operating in these locations cannot implement a platform fee program and must use an alternative fee structure, such as a flat convenience fee, where permitted.
5. Clearly Disclose Platform Fees
Where platform fees are permitted, customers must be informed of the fee before completing the transaction.
The platform fee should be displayed as a separate line item during the payment process and on applicable transaction records.
6. Never Apply Platform Fees to Debit or Prepaid Cards
Platform fees cannot be applied to debit or prepaid cards under federal requirements and card network rules, regardless of the state where your business operates.
Regulations May Change
Platform fee requirements are subject to change as card networks update their rules and states revise their laws. A state that permits platform fees today may restrict or prohibit them in the future, and vice versa.
Before implementing or modifying a platform fee program, confirm the current requirements for each state where you operate and for each card brand you accept.
Before You Implement Platform Fees
Before implementing a platform fee program, consider the following:
- In which states does your business operate, and what platform fee regulations apply in each state?
- Which credit card brands do you accept, and what are your costs of acceptance?
- Does your platform fee comply with the most restrictive applicable card network and state requirements?