State law guide · Last verified 2026-08-27
Is Credit Card Surcharging Legal in Texas? (2026)
Texas still has a surcharge ban on the books, but federal courts ruled it unenforceable, so card-brand rules (3% cap, credit only) govern in practice. Dual pricing — posting a card price and a lower cash price — is legal in Texas.
| Credit card surcharging | Banned on paper, ruled unenforceable |
|---|---|
| Surcharge cap | With the ban enjoined, card-brand rules govern in practice. 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 | Tex. Bus. & Com. Code §604A.0021 (still codified) |
Under active review: Residual as-applied enforceability per AG Op. KP-0257.
Dual pricing in Texas
Cash discounting is expressly NOT a surcharge under §604A.001(5) — dual pricing is the clean Texas structure.
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 Texas when prices are posted the way the checklist below describes.
What to post in Texas
A two-price checklist for Texas 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.
- Texas: Texas law expressly says a cash discount is not a surcharge (§ 604A.001(5)). Post the card price with cash as the discount.
Surcharging in Texas: the details
Enforcement
Largely unenforceable under the Rowell injunction, but the AG has opined the statute may retain narrow as-applied force — Texas merchants should structure carefully.
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
Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018) — permanent injunction; Tex. AG Op. KP-0257 (2019) suggests possible as-applied enforceability against non-litigants.
This page explains the law for education; FeeSlicers sets up dual pricing, not surcharge programs. It is not legal advice. Sources: Tex. Bus. & Com. Code §604A.0021; Rowell v. Paxton, 336 F. Supp. 3d 724 (W.D. Tex. 2018); Tex. AG Op. KP-0257 (2019).
Questions Texas owners ask
Can a business charge a credit card surcharge in Texas in 2026?
Effectively yes. The statutory ban was ruled unenforceable, so card-brand rules (3% cap, credit only) govern in practice — though dual pricing is the cleaner structure.
Is dual pricing (a cash price and a card price) legal in Texas?
Cash discounting is expressly NOT a surcharge under §604A.001(5) — dual pricing is the clean Texas structure. One card price covers both credit and debit cards.
What does a Texas 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. Texas law expressly says a cash discount is not a surcharge (§ 604A.001(5)). Post the card price with cash as the discount.
Other states with their own rules: California · 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 · 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 Texas?
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