State law guide · Last verified 2026-10-15
Is Credit Card Surcharging Legal in Illinois? (2026)
Yes — credit card surcharging is legal in Illinois. No state law caps it; card-brand rules limit surcharges to 3% on credit cards and never allow them on debit or prepaid cards. Dual pricing — posting a card price and a lower cash price — is legal in Illinois.
| Credit card surcharging | Legal under card-brand rules |
|---|---|
| Surcharge cap | No state cap. Card-brand rules govern (lesser of 3% Visa/Discover cap or merchant's cost of acceptance; Mastercard 4% ceiling rarely operative). Debit and prepaid cards can never be surcharged. |
| Dual pricing (cash and card price) | Legal |
| Governing law | Interchange Fee Prohibition Act (IFPA), 815 ILCS 151/150-1 et seq. (does not restrict surcharging itself) |
Dual pricing in Illinois
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 Illinois when prices are posted the way the checklist below describes.
What to post in Illinois
A two-price checklist for Illinois 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.
- Illinois: From January 1, 2027, Illinois HB228 bars advertising a price that leaves out mandatory charges. Advertise the card price; show the cash price as the discount.
Surcharging in Illinois: the details
Enforcement
Surcharging is legal under card-brand rules. The separate IFPA interchange restriction is permanently enjoined as to most institution types and its effective date was pushed to July 1, 2027 by SB3645. It has never restricted merchant surcharging.
Disclosure rules for surcharges
Card-brand disclosure rules only: post notice at store entry and point of sale; surcharge shown as a separate line item on the receipt.
Key rulings
Illinois Bankers Ass'n v. Raoul — on June 1, 2026 Chief Judge Kendall (N.D. Ill.) permanently enjoined the IFPA's interchange fee limitation as to national banks, federal savings associations, out-of-state state-chartered banks, and payment card networks; on September 22, 2026 the injunction was extended to federal credit unions. The data-use limitation remains enforceable. None of this restricts merchant surcharging.
Recent and pending changes
IFPA interchange restriction enjoined and delayed to July 1, 2027; Seventh Circuit review expected. Separately, HB228 (P.A. 104-0472, signed June 25, 2026, effective January 1, 2027) bars advertising a price that excludes mandatory fees 'or surcharges' — its application to an avoidable payment-method surcharge is not yet settled.
This page explains the law for education; FeeSlicers sets up dual pricing, not surcharge programs. It is not legal advice. Sources: 815 ILCS 151/150-1 et seq.; OCC Bulletin 2026-17; ABA Banking Journal / Consumer Finance Monitor (2025-26).
Questions Illinois owners ask
Can a business charge a credit card surcharge in Illinois in 2026?
Yes. No Illinois law caps surcharges, so card-brand rules govern: up to 3% on credit cards, never on debit or prepaid, with proper disclosure.
Is dual pricing (a cash price and a card price) legal in Illinois?
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 Illinois business have to post?
Card-brand disclosure rules only: post notice at store entry and point of sale; surcharge shown as a separate line item on the receipt. From January 1, 2027, Illinois HB228 bars advertising a price that leaves out mandatory charges. Advertise the card price; show the cash price as the discount.
Has Illinois surcharge law changed recently?
IFPA interchange restriction enjoined and delayed to July 1, 2027; Seventh Circuit review expected. Separately, HB228 (P.A. 104-0472, signed June 25, 2026, effective January 1, 2027) bars advertising a price that excludes mandatory fees 'or surcharges' — its application to an avoidable payment-method surcharge is not yet settled.
Other states with their own rules: California · Colorado · Connecticut · Florida · Georgia · 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.
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