Utilities & Billers Credit-Card Surcharge: State-by-State Compliance Checklist (2026)
A per-state landing checklist for utilities and billers: the 52-jurisdiction matrix plus the flat "convenience fee" model used for alternative payment channels.
Last verified: 2026-09 · Educational reference, not legal advice
A percentage credit-card surcharge on a utility bill follows the network baseline where permitted. But most utilities and billers use a flat convenience fee — a fixed amount for paying by card through an alternative channel (web, phone, kiosk) — which is a different model with its own rules and is often authorized by state public-utility commissions.
Convenience fee vs surcharge
A convenience fee is typically a flat dollar amount (not a percentage) added only when a customer chooses a non-standard payment channel. It must be disclosed before payment and is set by the billing processor. Many state utility commissions authorize cost-recovery fees on card payments; confirm your commission’s rules before adding one.
| State | Status | Surcharge? | Cash discount? | State cap | Key rule |
|---|---|---|---|---|---|
| Alabama (AL) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Alaska (AK) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Arizona (AZ) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Arkansas (AR) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| California (CA) | Contested | No | Yes | — | Statute bans surcharging; legal status contested — cash discount recommended |
| Colorado (CO) | Restricted | Yes | Yes | 2% | State cap 2% (lower than Visa 3%) |
| Connecticut (CT) | Banned | No | Yes | — | Surcharging prohibited by state law |
| Delaware (DE) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| District of Columbia (DC) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Florida (FL) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Georgia (GA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Hawaii (HI) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Idaho (ID) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Illinois (IL) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Indiana (IN) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Iowa (IA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Kansas (KS) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Kentucky (KY) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Louisiana (LA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Maine (ME) | Contested | No | Yes | — | Statute bans surcharging; legal status contested — cash discount recommended |
| Maryland (MD) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Massachusetts (MA) | Banned | No | Yes | — | Surcharging prohibited by state law |
| Michigan (MI) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Minnesota (MN) | Restricted | Yes | Yes | Actual cost | Cap = your actual processing cost |
| Mississippi (MS) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Missouri (MO) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Montana (MT) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Nebraska (NE) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Nevada (NV) | Restricted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| New Hampshire (NH) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| New Jersey (NJ) | Restricted | Yes | Yes | Actual cost | Cap = your actual processing cost |
| New Mexico (NM) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| New York (NY) | Restricted | No | Yes | — | No line-item surcharge; cash-discount model required |
| North Carolina (NC) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| North Dakota (ND) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Ohio (OH) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Oklahoma (OK) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Oregon (OR) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Pennsylvania (PA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Rhode Island (RI) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| South Carolina (SC) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| South Dakota (SD) | Restricted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Tennessee (TN) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Texas (TX) | Contested | No | Yes | — | Statute bans surcharging; legal status contested — cash discount recommended |
| Utah (UT) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Vermont (VT) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Virginia (VA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Washington (WA) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| West Virginia (WV) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Wisconsin (WI) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Wyoming (WY) | Permitted | Yes | Yes | 3% | Visa 3% / Mastercard 4% (3% effective if you accept both); lower of cap or actual cost |
| Puerto Rico (PR) | Banned | No | Yes | — | Surcharging prohibited by state law |
Your utility / biller go-live checklist
- Confirm your state in the matrix if you plan a percentage surcharge (banned in CT, MA, PR; contested in CA, TX, ME).
- Decide model: flat convenience fee (common for utilities) vs percentage surcharge (more restricted).
- If adding a convenience fee, confirm your state public-utility commission authorizes card cost-recovery on bills.
- Disclose the fee before payment and on the biller’s payment page.
- If surcharging, submit the ~30-day acquirer notice and exclude debit cards.
- Print the fee as a separate receipt line; for a flat fee, show it before the customer pays.
Utilities and billers commonly use a flat convenience fee on alternative payment channels, often authorized by a state utility commission — a different model from a percentage surcharge. Confirm your commission’s rules before adding any fee.
Compare surcharge vs convenience fee.Open the fee-types guide →
Related guides
Frequently asked questions
Where the state permits surcharging, yes, under the network caps — but most utilities instead add a flat convenience fee on alternative channels (online/phone), often authorized by the state utility commission.
A flat dollar amount added when a customer pays by card through a non-standard channel (web, phone, kiosk), disclosed before payment and set by the billing processor.
For a convenience fee on a regulated utility bill, many states require public-utility commission authorization for card cost-recovery. Confirm your commission’s rules before adding it.
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.