Surcharge & Dual Pricing Laws · California · Last verified 2026-08-27
Credit card surcharging is legal in California, but with state-specific 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 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 price / 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) |
| 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. |
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.
Italian Colors Restaurant v. Becerra (9th Cir.) struck the old surcharge ban on First Amendment grounds.
SB478 / SB1524 (2024).
Dual pricing (posting a card price and a lower cash price) is legal.
Many California merchants choose dual pricing over surcharging because it covers both debit and credit and sidesteps the state's surcharge-specific caps and disclosure mechanics. Where a surcharge program fits better, it must follow the rules above exactly.
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.
Dual pricing (posting a card price and a lower cash price) is legal. Dual pricing applies to both debit and credit cards.
No. Debit and prepaid cards can never be surcharged anywhere in the U.S. — the Durbin Amendment and card-network rules prohibit it regardless of state law. Dual pricing, by contrast, lawfully covers both debit and credit.
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.
SB478 / SB1524 (2024).
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This page is an educational reference, not legal advice. Surcharge and pricing law changes frequently — this page was last verified on 2026-08-27, and we confirm current rules for your state during setup. Sources: Italian Colors Restaurant v. Becerra (9th Cir.); CA DOJ SB478 FAQ (May 2024); Greenberg Traurig / Littler analyses (2024).