Minnesota Credit Card Surcharge Law (Minn. Stat. 325G.051)

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This page is general information, not legal advice. It is current as of September 16, 2026, and quotes or summarizes the primary sources listed at the end. Surcharge rules change through new laws, amendments and court cases, so check current rules with your processor and your own counsel before you add a card fee. CELER Merchants is an independent merchant services agent, not a law firm or a processor. The statute text summarized here is from the Minnesota Office of the Revisor of Statutes. Its history note lists 1987 c 172 s 1 and 2023 c 57 art 4 s 19, so the section was amended in 2023; older guides may describe an earlier version.

What section 325G.051 allows

Subdivision 1(a) says a seller or lessor may impose a surcharge on a credit card transaction in Minnesota, provided the notice rules for the sales channel are met and "the surcharge does not exceed five percent of the purchase price." Subdivision 1(c) defines a surcharge as a fee that increases the price because the customer uses a credit card. The statute is written around credit card transactions only, and Visa's rules separately say debit and prepaid cards cannot be surcharged, so do not surcharge debit in Minnesota.

The 5% state cap is not the limit that binds

Minnesota's 5% ceiling is higher than Visa's. Visa's surcharging requirements say the surcharge must not exceed your cost of acceptance for the credit card, and never more than 3% even when your cost is higher. So in practice a Minnesota merchant that accepts Visa should use the lower of its cost of acceptance and 3%, and check the current rules of every other network it accepts. Charging 5% because the statute allows it would break Visa's rules even though it fits state law.

Cash discounts

Subdivision 1(c) says a discount offered for paying by cash or check is not a surcharge if the discount is offered to all prospective customers and its availability is clearly and conspicuously disclosed. The statute does not mention dual pricing or "non-cash adjustment" programs by name. A program that adds a fee at the register only when a card is used increases the price because the customer uses a credit card, which is the statute's definition of a surcharge, so it needs to follow the 5% cap and notice rules. Have counsel review any program before calling it a discount.

What Minnesota merchants should do

1. Work out your actual cost of accepting credit cards from your processing statements. 2. Set any surcharge at or below the lowest of that cost, Visa's 3% ceiling and Minnesota's 5% cap. 3. In store, post a conspicuous sign and tell each customer out loud at the time of sale. 4. Online and in apps, show the surcharge notice during checkout. 5. On phone orders, say it out loud. 6. Configure your terminal and gateway so debit and prepaid cards are never surcharged. 7. If you issue your own store credit card, do not surcharge it. 8. Notify your acquirer at least 30 days before you start, as Visa requires, and show the surcharge as its own line on every receipt.

How card network rules fit in

Visa's Merchant Surcharging Considerations and Requirements document says merchants must notify their acquirer 30 days before surcharging, that surcharging in the US applies only to credit transactions and debit and prepaid cannot be surcharged, that the surcharge must not exceed the cost of acceptance and cannot be above 3%, that disclosures are required at the point of entry and point of sale, and that the final surcharge amount must be itemized on the receipt. Mastercard, American Express and Discover set their own conditions, so check current rules for each network you accept. Where a state rule and a network rule differ, follow the stricter one; in Minnesota the network cap is usually the stricter.

If you also sell in other states

Neighboring states do not share Minnesota's rules. Colorado caps surcharges at 2% with required sign wording (C.R.S. 5-2-212), and Oklahoma caps them at 2% or actual cost. We have not confirmed a statewide surcharge statute for Wisconsin, Iowa, North Dakota or South Dakota from a primary source, which does not mean anything goes. Check the state-by-state table and set surcharging per location and per website.