New Jersey Credit Card Surcharge Law (N.J.S.A. 56:8-156.1)

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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 rules on this page come from the New Jersey Division of Consumer Affairs' Credit Card Surcharges FAQ (revised 03/06/26). We tried to fetch the text of P.L. 2023, c.146 from the New Jersey Legislature's website on September 16, 2026, but the site did not respond, so this page does not quote the statute directly and does not cover penalties. Read the statute itself, or ask counsel, before relying on this summary.

What the law does

The Division of Consumer Affairs says that in 2023 Governor Murphy signed P.L. 2023, c.146 (N.J.S.A. 56:8-156.1 and -156.2), which, among other things, prohibits sellers from imposing a credit card surcharge that is greater than the actual cost to the seller to process the credit card payment. The law does not require anyone to surcharge. The Division says the cap applies only to credit card transactions. It does not apply to debit card or gift card transactions, or to other fees a seller may add. The Division adds that all fees and charges must always be clearly and conspicuously disclosed at or near the point of sale before the transaction, and that other laws, including federal law, may limit or prohibit certain fees. Visa's rules separately bar surcharging debit and prepaid cards, so the fact that the New Jersey cap does not cover debit is not permission to surcharge debit.

Where and how to disclose the surcharge

The seller must tell the customer the amount of the surcharge before the customer incurs any charge. Stating a percentage is fine. Saying only that a surcharge applies is not. The Division gives this sign as an example that is not enough: "We impose a credit card surcharge that does not exceed our processing costs." No particular form of sign is required. Handwritten notes, homemade signs and stickers can be enough if they clearly and conspicuously show the amount before the transaction and are posted in the required places.

Flat-rate and card-by-card surcharges

The Division says a seller may charge one flat surcharge rate on all credit card transactions as long as the rate does not exceed the actual cost of processing the transaction. Its example is a 2% surcharge on all credit cards even if some processing costs are higher than 2%. If the seller's surcharge varies by card, each amount has to be disclosed. The Division's example of a compliant sign is: "We impose a credit card surcharge of 2% for using Credit Card X and a surcharge of 2.25% for using Credit Card Y." In practice this means knowing your real cost per card type. Your processing statements show what you pay, and interchange-plus pricing makes that cost easier to see than a bundled flat rate.

What New Jersey merchants should do

1. Pull your recent processing statements and work out your actual cost to accept credit cards, by card type if your costs vary. 2. Set the surcharge at or below that cost and at or below every network cap that applies (Visa: your merchant discount rate or 3%, whichever is lowest). 3. Make sure your terminal and online checkout never surcharge debit or prepaid cards. 4. Post the amount at the point of entry and point of sale, or on the menu and in the service area if you run a restaurant. 5. Show the amount on the checkout page online and say it out loud on phone orders. 6. Give your acquirer at least 30 days' notice before you start, as Visa requires. 7. Keep your statements so you can show the surcharge does not exceed your cost.

How card network rules fit in

Every US merchant who accepts Visa also has to follow Visa's rules, whatever state law allows. Visa's U.S. Merchant Surcharge Q&A says to notify your acquirer at least 30 days before you start surcharging, to limit surcharging to credit cards (debit and prepaid cards cannot be surcharged, even when a debit cardholder selects "credit"), to keep the amount at or below your merchant discount rate for that card or 3%, whichever is lowest, and to disclose the surcharge at the point of entry, at the point of sale and on every 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 New Jersey the lowest limit is usually your actual cost, so a surcharge set at a network's maximum can still break state law if your cost is lower.

If you also sell in other states

Do not copy one surcharge setting across locations. New York requires the total card price to be posted (GBL 518), Connecticut bans surcharges on any payment method (C.G.S. 42-133ff), and Pennsylvania, Delaware and other neighbors have their own rules or none we could confirm. Ask your processor whether surcharging can be set per location and per website, and re-check each state's rules at least once a year.