Credit card processing in California
California merchants face the most price-display scrutiny of any state after its hidden-fee law, and they sell to one of the most card-heavy customer bases anywhere. Getting card fees right here is as much about how prices are shown as about the rate you pay.
The California Attorney General says a 2018 court decision limits enforcement of the state's old surcharge ban, and under SB 478 (effective July 1, 2024) a card fee customers cannot avoid must be included in the advertised price. The California Department of Tax and Fee Administration lists the statewide tax rate as 7.25%; check whether local taxes also apply at each location.
From California online sellers to Los Angeles and San Diego restaurants: California's business mix
Los Angeles, San Diego and the Orange County cities are dense with restaurants, retail, entertainment and services, and a large share of their customers pay by tap or phone. The Bay Area adds tech-savvy buyers, high rents and high average tickets, while Sacramento carries state government and a growing restaurant scene.
The Central Valley, from Stockton and Fresno to Bakersfield, runs on agriculture, logistics and family-owned businesses, many serving Spanish-speaking customers. Online sellers are everywhere in the state, which puts card-not-present fraud and chargebacks on many statements.
Card fees in California, legally
California's Attorney General says it will generally apply the Italian Colors ruling, which limits enforcement of the old surcharge ban in Civil Code 1748.1, to merchants in similar situations. Under SB 478, effective July 1, 2024, a card fee that customers cannot avoid, such as when you accept only cards, belongs in the advertised price. Never advertise a price lower than what customers actually pay.
| Status | Allowed with conditions |
|---|---|
| Key condition | A 2018 federal court ruling (Italian Colors v. Becerra) limits enforcement of the old ban in Civil Code 1748.1. Under SB 478 (effective July 1, 2024), a card fee is part of the advertised price if it cannot be avoided, for example when you accept only credit cards. Never advertise a lower price than you charge. |
| Source | California Attorney General, Credit Card Surcharges page and SB 478 Hidden Fees FAQ |
The state-by-state surcharge table · general information, not legal advice
Which pricing suits Los Angeles and San Diego restaurants?
Because of SB 478, a restaurant that adds a card fee to every ticket or runs a card-only counter should treat that fee as part of the menu price, which removes much of the appeal of surcharging. Many California operators are better served by interchange-plus pricing and cutting downgrades, or by dual pricing that shows both prices clearly. High-volume online sellers should look at fraud tools and authorization rates as closely as at the rate itself.
POS for Bay Area retailers, Central Valley food trucks and markets and more
- Los Angeles and San Diego restaurants
- Menus and POS set up so any card fee is disclosed the way SB 478 requires, with tableside payment and tip adjustment.
- Bay Area retailers
- Unified in-store and online inventory, contactless and wallet acceptance, and tokenized card storage for returns.
- Central Valley food trucks and markets
- Mobile terminals with offline mode and bilingual receipts for Spanish-speaking customers.
- California online sellers
- A gateway with 3-D Secure, address verification and chargeback alerts.
California cities with their own page
Send one statement. Every fee named, back, usually within 4 hours.
It is free, there is nothing to sign and nothing to cancel. We read your current merchant statement line by line, name every fee on it — including the ones buried in the fee schedule — work out your true effective rate, and send the written analysis back, usually within 4 hours. Do not want to wait? Call 1-888-705-7896 and we will read your statement with you on the call in about 5 minutes.
Towns and cities we serve in California
Los Angeles · San Diego · San Jose · San Francisco · Fresno · Sacramento · Long Beach · Oakland · Bakersfield · Anaheim · Santa Ana · Riverside · Stockton · Irvine · Chula Vista · Fremont · San Bernardino · Modesto · Fontana · Oxnard · Moreno Valley · Huntington Beach · Glendale · Santa Clarita · Garden Grove · Oceanside · Rancho Cucamonga · Santa Rosa · Ontario · Elk Grove · Corona · Lancaster · Palmdale · Salinas · Hayward · Pomona · Escondido · Sunnyvale · Torrance · Pasadena · Orange · Fullerton · Roseville · Visalia · Concord · Thousand Oaks · Simi Valley · Santa Clara · Victorville · Berkeley · Vallejo · Fairfield · El Monte · Carlsbad · Temecula · Palm Springs · Napa · Santa Barbara · San Luis Obispo · Redding · Chico · Eureka · Monterey · Ventura · Burbank · Beverly Hills · Santa Monica · West Hollywood · Culver City · Redondo Beach
Commercial corridors
Los Angeles
Rodeo Drive · Melrose Avenue · Sunset Boulevard · Abbot Kinney Boulevard · Ventura Boulevard · Hollywood Boulevard · Wilshire Boulevard · Larchmont Boulevard · Colorado Boulevard · Third Street Promenade · Fairfax Avenue · Beverly Boulevard · Olvera Street · Broadway
San Francisco
Market Street · Union Square · Valencia Street · Hayes Street · Chestnut Street · Fillmore Street · Union Street · Clement Street · Irving Street · Mission Street · Columbus Avenue · Grant Avenue
San Diego
Fifth Avenue · Prospect Street · Newport Avenue · Adams Avenue · 30th Street · India Street · Garnet Avenue
Sacramento
K Street · J Street · Franklin Boulevard · Fair Oaks Boulevard · Broadway · Folsom Boulevard
San Jose
Santana Row · South First Street · The Alameda · Stevens Creek Boulevard · Lincoln Avenue
Long Beach
Pine Avenue · 2nd Street · 4th Street · Atlantic Avenue
Palm Springs
Palm Canyon Drive · Indian Canyon Drive · Tahquitz Canyon Way
Asked by California merchants
California's Attorney General says it will generally apply the Italian Colors ruling, which limits enforcement of the old surcharge ban in Civil Code 1748.1, to merchants in similar situations. Under SB 478, effective July 1, 2024, a card fee that customers cannot avoid, such as when you accept only cards, belongs in the advertised price. Never advertise a price lower than what customers actually pay.
If every customer must pay by card, a card fee cannot be avoided, so it belongs in the advertised menu price rather than added at the end. The Attorney General publishes guidance on hidden fees that is worth reading before you change your menu.
Showing a cash price and a card price side by side is different from adding a surprise fee, but it must be displayed clearly and follow card rules. Treat it as a pricing display question and check current guidance.
For California online sellers: All of it, in every community. San Diego, San Jose, Fresno, Sacramento, Long Beach, Oakland, Bakersfield, Anaheim, Stockton, Riverside, Irvine, Santa Ana, Chula Vista, Los Angeles and San Francisco have their own pages here. For California online sellers: Setup is remote from start to finish, including programming the hardware before it ships.