Surcharge & Dual Pricing Laws · Illinois · Last verified 2026-08-27

Is Credit Card Surcharging Legal in Illinois? (2026)

Yes — credit card surcharging is legal in Illinois. There is no state-specific cap; card-brand rules apply, which 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.

Illinois at a glance

Credit card surchargingLEGAL under card-brand rules
Surcharge capNo 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 price / card price)LEGAL
Governing lawInterchange Fee Prohibition Act (IFPA), 815 ILCS 151/150-1 et seq. (does not restrict surcharging itself)
EnforcementSurcharging is legal under card-brand rules. The separate IFPA interchange restriction is largely blocked for most institutions and its effective date was delayed to July 1, 2026; litigation is ongoing.

What Illinois requires merchants to disclose

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

The IFPA's ban on interchange for tax/gratuity portions has been substantially enjoined/preempted (N.D. Ill.; OCC interim final order, Bulletin 2026-17; Seventh Circuit remand).

Recent & pending changes

IFPA litigation and regulatory posture in active flux through 2026.

Dual pricing vs. surcharging in Illinois

Dual pricing (posting a card price and a lower cash price) is legal.

Illinois merchants can run either program. Dual pricing covers both debit and credit and requires no surcharge registration; surcharging (flat 3%, credit only) works well for credit-heavy businesses. The right fit depends on your card mix.

Illinois surcharge law: common questions

Can a business charge a credit card fee in Illinois in 2026?

Yes. Illinois has no state surcharge statute, 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. Dual pricing applies to both debit and credit cards.

Can a Illinois business add a surcharge to debit card payments?

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.

What does Illinois require a business to disclose?

Card-brand disclosure rules only: post notice at store entry and point of sale; surcharge shown as a separate line item on the receipt.

Has Illinois surcharge law changed recently, or is a change pending?

IFPA litigation and regulatory posture in active flux through 2026.

Want Illinois's rules in writing before you change anything?

FeeSlicers sets up compliant dual pricing programs — your card-price customers cover processing, your cash customers pay less, and you pay one flat $40/month. George, a 20-year payments veteran, confirms your state's rules as part of setup.

Start Slicing →

Two minutes to start. No obligation. George takes it from there.

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: 815 ILCS 151/150-1 et seq.; OCC Bulletin 2026-17; ABA Banking Journal / Consumer Finance Monitor (2025-26).

← All state surcharge & dual pricing laws