State law guide · Last verified 2026-08-27
Is Credit Card Surcharging Legal in California? (2026)
Credit card surcharging is legal in California, but state law adds restrictions — see the cap and disclosure rules below. Surcharges apply to credit cards only, never debit or prepaid. Dual pricing — posting a card price and a lower cash price — is legal in California.
| Credit card surcharging | Legal with state restrictions |
|---|---|
| Surcharge cap | No fixed surcharge cap; SB478 requires card-acceptance costs to be included in the advertised price, which effectively restricts separate surcharge line items at checkout. |
| Dual pricing (cash and card price) | Legal |
| Governing law | Civil Code §1748.1 (former surcharge ban, struck down); SB478 all-in pricing under Civil Code §1770 (effective July 1, 2024); SB1524 (restaurant clarification, 2024) |
Under active review: Surcharge line-item treatment under SB478 is contested; guidance is non-binding.
Dual pricing in California
Dual pricing (posting a card price and a lower cash price) is legal.
FeeSlicers sets up dual pricing through North's Edge program: every item has a posted card price about 4% higher than its cash price ($3.00 cash / $3.12 card), the same for credit and debit. That structure is legal in California when prices are posted the way the checklist below describes.
What to post in California
A two-price checklist for California businesses.
- Post the card price for every item — on your menu, shelf tags, price board and website. Never show a cash price by itself.
- Show the cash price next to it, clearly labeled as the cash price.
- Put a customer notice at the entrance and at the register saying items have a cash price and a card price. North supplies this sign to Edge merchants, in English and Spanish.
- Charge one card price for every card — credit and debit alike.
- Make sure the receipt shows the price the customer paid, never an extra amount on top of the cash price.
- California: California's SB478 requires the price you advertise to include every mandatory charge. Posting the card price as your regular price, with cash as a discount from it, fits that rule; never advertise the cash price alone.
Surcharging in California: the details
Enforcement
The old ban is unenforceable; SB478 is actively enforced by the California AG as a price-transparency rule. Whether any separate surcharge line item survives SB478 is contested; the AG's May 2024 FAQ is non-binding.
Disclosure rules for surcharges
All mandatory fees must appear in the advertised price. The safest California structure is all-in pricing or true dual pricing where the card price is the posted price.
Key rulings
Italian Colors Restaurant v. Becerra (9th Cir.) struck the old surcharge ban on First Amendment grounds.
Recent and pending changes
SB478 / SB1524 (2024).
This page explains the law for education; FeeSlicers sets up dual pricing, not surcharge programs. It is not legal advice. Sources: Italian Colors Restaurant v. Becerra (9th Cir.); CA DOJ SB478 FAQ (May 2024); Greenberg Traurig / Littler analyses (2024).
Questions California owners ask
Can a business charge a credit card surcharge in California in 2026?
Yes, with restrictions. No fixed surcharge cap; SB478 requires card-acceptance costs to be included in the advertised price, which effectively restricts separate surcharge line items at checkout.
Is dual pricing (a cash price and a card price) legal in California?
Dual pricing (posting a card price and a lower cash price) is legal. One card price covers both credit and debit cards.
What does a California business have to post?
All mandatory fees must appear in the advertised price. The safest California structure is all-in pricing or true dual pricing where the card price is the posted price. California's SB478 requires the price you advertise to include every mandatory charge. Posting the card price as your regular price, with cash as a discount from it, fits that rule; never advertise the cash price alone.
Has California surcharge law changed recently?
SB478 / SB1524 (2024).
Other states with their own rules: Colorado · Connecticut · Florida · Georgia · Illinois · Indiana · Kansas · Louisiana · Maine · Massachusetts · Minnesota · Montana · Nebraska · Nevada · New Jersey · New York · North Carolina · Oklahoma · Puerto Rico · Rhode Island · South Dakota · Texas · Virginia · Wyoming. Every other state is on the 50-state table. Recent updates are in the law changes log.
Want two prices set up the right way in California?
George will walk you through your state's posting rules before anything goes on your counter.
Two minutes to start. No obligation. George takes it from there.