The short answer
For live-event tickets and short-term lodging, the FTC's Rule on Unfair or Deceptive Fees (16 C.F.R. Part 464), effective May 12, 2025, requires the total price upfront. FTC staff guidance says a business may charge card processing fees if otherwise permitted by law. If customers must pay by credit card, the fee is mandatory and belongs in the total price. If another viable payment method without a fee is available on the same platform or at the same location, the fee can be left out of the total price, but it must still be disclosed and included in the final amount before payment. Not legal advice.
Read this first
This page is general information, not legal advice. It is current as of September 16, 2026, and summarizes the FTC's small entity compliance guide for the rule, published May 2025. The FTC says the guide is its staff's view of the rule's requirements and is not binding on the Commission. The rule does not decide whether surcharging is legal where you do business: state law and card network rules still apply. Check current rules with your processor and your own counsel before you add a card fee.
Who the rule covers
The FTC's Rule on Unfair or Deceptive Fees, 16 C.F.R. Part 464, took effect May 12, 2025. It covers businesses that offer, display or advertise live-event tickets or short-term lodging, including third-party platforms, resellers and travel agents, whether online, in an app or in a physical location. The FTC says it protects business customers as well as individuals.
| Covered | Not covered |
|---|---|
| Tickets for concerts, sporting events, theater and other live performances | In general, pre-recorded performances and film screenings |
| Hotels, motels, inns, short-term and vacation rentals | Long-term rental housing with an ongoing landlord-tenant relationship |
| Home shares and vacation rentals offered through platforms | Short-term lease extensions offered by rental housing providers |
| Discounted extended stays at a hotel | Temporary corporate housing offered by an apartment community on the same terms as long-term leases |
The total price rule in brief
A covered business that shows a price must show the total price upfront, including all fees it knows about and can calculate, and display it more prominently than other pricing information. Only three kinds of charges can be left out of that total: government charges, shipping charges, and charges for optional add-ons the customer chooses. Before asking for payment, the business must disclose the nature, purpose and amount of any excluded charge and show the final amount at least as prominently as the total price. The FTC also says a business must describe what fees are for and avoid vague phrases like "convenience fees," "service fees" or "processing fees."
How the rule treats credit card surcharges
The FTC's guide answers this directly. Businesses may charge or pass through credit card or other payment processing fees if otherwise permitted by law. The treatment then depends on whether the customer can reasonably avoid the fee.
| Situation | FTC staff treatment |
|---|---|
| You require payment by credit card | The fee is mandatory and must be included in the total price |
| FTC example: an online ticket seller adds a 3% credit card surcharge and offers no other viable online payment method without a fee | The card payment is a mandatory ancillary service; the fee must be in the total price |
| FTC example: a comedy club box office adds 3% for credit cards but not for a payment app, debit card or cash | Using a credit card is optional; the fee can be left out of the total price |
| The fee is optional and left out of the total price | Disclose it, include it in the final amount before asking for payment, and do not misrepresent its purpose or amount |
Avoidable means avoidable on that platform
The FTC's wording is another viable payment method "at the same location or platform" without a fee. A no-fee option somewhere else, such as paying in person when the customer is booking online, is not what the guide describes. The guide also says a business cannot treat an automatic fee as optional if it removes the fee only when a customer notices and challenges it, and that pre-checked boxes and opt-out defaults do not make a fee optional.
State law still applies
The rule does not replace state surcharge law. The FTC says businesses must comply with the rule and all applicable state or local laws. If a state or local law directly conflicts with the rule and a business cannot comply with both, the rule supersedes it only to the extent of the conflict. Where a state or local law gives consumers greater protection, the business must meet both. So a hotel in a state that bans or caps surcharges still has to follow that state's law, and card network rules on surcharging still apply.
What happens if a business breaks the rule
The FTC says businesses that violate any FTC trade regulation rule, including this one, could be ordered to bring their practices into compliance, refund money to consumers and pay civil penalties.
Checklist for hotels, rentals and ticket sellers
1. Confirm whether surcharging is allowed in each state where you sell, and follow card network rules. 2. List every payment method on each booking or ticketing platform and at each location. 3. If customers cannot pay without the card fee on that platform, build the fee into the total price you show upfront. 4. If a no-fee method is genuinely available on the same platform, you may leave the fee out of the total price, but disclose its purpose and amount and include it in the final amount before asking for payment. 5. Name the fee plainly, for example as a credit card surcharge, not a vague service or processing fee. 6. Remove pre-checked boxes and fees that are dropped only when a customer complains. 7. Give third-party platforms and resellers the information they need to show the total price. 8. Recheck the rules at least once a year.
Key takeaways
- 16 C.F.R. Part 464 covers live-event tickets and short-term lodging, effective May 12, 2025.
- Card fees may be charged if otherwise permitted by law.
- A card fee customers cannot reasonably avoid must be in the total price.
- An optional card fee can be left out of the total, but must be disclosed and included in the final amount before payment.
- Avoid vague labels like convenience or processing fee.
- State surcharge law and card network rules still apply. Not legal advice; current as of September 16, 2026.
Related guides
- Credit Card Surcharge Laws by State (2026 Guide)
- California Credit Card Surcharge Law and SB 478
- Cash Discount vs Surcharge vs Dual Pricing (US Rules)
- Surcharge Signage and Disclosure Rules at the Point of Sale
- Hotels and Short-Term Rentals: Authorizations and Incidentals
- Sales Tax on Credit Card Surcharges: State Guidance
Want this checked against your own statement?
We are an independent agent — we shop every processor we work with and bring you the best deal for your profile. Free analysis, every fee named, back, usually within 4 hours. Or call now and we will quote you on the phone.