How to Enable a Credit-Card Surcharge or Cash Discount in Square (2026)
Square supports both a card-surcharge program and a cash-discount program in eligible US states. What Square automates for you, what state law still requires, and the setup pattern to follow.
Last verified: 2026-08 · Educational reference, not legal advice
Use Square’s built-in program where available, but treat the network and state rules below as the real requirement. Square will cap the fee and exclude debit for you; it will not confirm your state allows surcharging.
What Square handles for you
In eligible US states, Square’s surcharge feature automatically calculates the fee, caps it at the network maximum (the lower of 3% Visa / 4% Mastercard or your actual cost), and excludes debit cards from the surcharge even when a customer runs a debit card as "credit." A separate cash-discount mode is also available for merchants who prefer the always-legal dual-price model.
| Capability | Square behavior |
|---|---|
| Surcharge calculation | Auto-applied at checkout, capped at network max |
| Debit cards | Excluded from surcharge automatically |
| Cash discount | Supported as a separate program |
| State-law legality | Merchant responsibility — Square does not verify |
What you still must do
- Confirm your state allows surcharging (banned in CT, MA, PR; contested in CA, TX, ME; restricted in 7 states). Use the per-state tool if unsure.
- Enable the surcharge or cash-discount program in your Square Dashboard under Checkout settings, and confirm the exact menu label in Square’s current help center (menus change).
- Submit the ~30-day notice to your acquirer / the card networks before you go live (Square acts as your processor; follow its notice guidance).
- Post signage at the store entrance and at the point of sale, and confirm the receipt shows the surcharge as its own line.
- Run a live test transaction and read the printed receipt before offering it to customers.
Square’s automation does not make surcharging legal in a banned or contested state. In CT, MA, or PR, run a cash-discount program only. In CA, TX, or ME, a cash discount is the safe path until the state AG position is clarified.
Not sure your state allows it?Open the per-state decision tool →
Related guides
Frequently asked questions
No. Square automatically excludes debit cards from any surcharge, consistent with the federal Durbin Amendment, which prohibits debit surcharges everywhere in the US even when a debit card is run as credit.
No. Square enables the feature only in eligible states, but the merchant is responsible for confirming state law. Surcharging is banned outright in Connecticut, Massachusetts, and Puerto Rico.
In many cases yes. A cash-discount (dual-price) program is legal in all 50 states and Puerto Rico and avoids the contested-state risk entirely. Square supports this mode.
Educational content, not legal advice. Cashbizly is an independent educational resource. Nothing here is personalized legal advice and it does not replace a licensed attorney or your state’s Attorney General.
Our state-by-state status reflects the consensus of published 2025–2026 compliance guides (card-network rules, LawPay, Stax, NCSL) as of the “last verified” date on each page. Surcharge law changes frequently and is actively litigated — always confirm current figures with your state Attorney General or a professional. Read our full disclaimer.