Credit Card Surcharge Rules: What Hotels and Rentals Can Charge
Credit card surcharge rules let most US hotels and vacation rentals add a fee for credit card payments, within set limits. Card networks, states and the FTC each set some of those limits. Visa caps the fee at 3% or your actual card cost, whichever is lower, and bans it on debit and prepaid cards. Some states ban surcharges outright, and lodging prices must now show mandatory fees upfront.
This guide covers what Visa allows, which state and federal pricing laws apply to lodging, and how to disclose a fee. It also explains how ChargeAutomation supports clear, itemized card payments. It is general information, not legal advice, so confirm your plan with your acquirer and a lawyer.
Key Takeaways
Most US hotels and vacation rentals may add a surcharge, but only on credit cards, within network caps and where state law allows it.
Visa's April 2026 rules cap a US credit card surcharge at 3%, and its merchant Q&A sets a lower cap when card costs are lower.
Visa requires merchants to notify their acquirer in writing at least 30 days before they start surcharging or announce plans to surcharge.
The FTC Rule on Unfair or Deceptive Fees, in effect since May 12, 2025, requires short-term lodging to show the total price with mandatory fees.
Hotels and rental managers should confirm state law, tell their acquirer and disclose the fee clearly, or simply build card costs into the rate.
Credit Card Surcharge Rules: Can Hotels and Rentals Add a Fee?
Yes, most US hotels and vacation rentals can add a surcharge to credit card payments if they follow card network and state rules. A surcharge is an extra fee for paying by a certain method. Visa allows it on credit cards in most US states and territories, but never on debit or prepaid cards. That holds even when a debit cardholder picks credit at the terminal.
The amount is capped. Visa's April 2026 rules set the US maximum at 3.00%, and Visa's merchant Q&A limits it to your merchant discount rate when that is lower. You can apply one rate to all Visa credit cards or set rates by card product, but not both. The fee must also appear in the transaction data your acquirer sends to Visa.
Notice and disclosure come before the first charge. You must notify your acquirer in writing at least 30 days before you first surcharge or announce it. Guests must see the fee at the point of entry and at checkout, and the receipt must list it as a separate charge. Online, that means the first page naming the card brands you accept and the checkout page.
Visa also allows a cash discount instead, if you show the card price or both prices side by side. Mastercard and American Express set their own surcharge terms, so check them with your acquirer. On Airbnb, guests pay through Airbnb, so surcharges mostly matter for direct bookings.
Under Visa rules, a hotel or rental that surcharges must meet these conditions:
Surcharge credit cards only, never debit or prepaid
Keep the fee at or below 3% and your merchant discount rate
Notify your acquirer in writing 30 days ahead
Disclose the fee at the point of entry and at checkout
Show the exact amount or percentage of the fee
State the fee is set by the merchant, not Visa
List the surcharge as a separate line on the receipt
Pick brand-level or product-level surcharging, not both
State and FTC Credit Card Surcharge Rules for Lodging
State law can ban a surcharge that card networks allow, so check your state first. As of February 15, 2024, Visa's Q&A listed Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico as banning surcharges. It listed Colorado, Minnesota, New Jersey and New York as having extra requirements. Visa warns its list may contain errors, and state laws change, so confirm with your state.
Since February 11, 2024, New York businesses may pass on their actual card processing cost. They must display the highest total price, excluding sales tax, and a wall sign or receipt-only fee is not enough. Since July 1, 2024, California's honest pricing law, SB 478, has required listed hotel and short-term rental prices to include all mandatory fees. Government taxes are the main exception.
Since May 12, 2025, the FTC junk fees rule has covered hotels, motels, vacation rentals and home shares on Airbnb or Vrbo nationwide. If guests must pay by credit card, the card fee counts as mandatory and must be in the total price. With another viable fee-free way to pay, the fee is optional but must be disclosed before payment.
The FTC also asks businesses to say what each fee is for, and avoid vague labels such as processing fees. Rules keep changing, so recheck state and federal guidance before you change your pricing.
Before adding a card fee, lodging operators should check these points:
Whether your state bans or limits surcharges
Whether your acquirer has received 30 days' written notice
Whether guests have a fee-free way to pay
Whether the total price shown includes mandatory fees
Whether the fee has a clear, specific name
Whether the New York or California pricing rules apply to you
Whether the booking is direct or through an OTA such as Airbnb
How ChargeAutomation Supports Transparent Card Payments for Hotels and Rentals
ChargeAutomation helps hotels and rentals show guests exactly what they pay and keep a clean record of every charge. ChargeAutomation creates automatic invoices and receipts with custom line items and tax handling, so each amount is itemized. Whether a surcharge is legal where you operate is a call for your acquirer and lawyer, not your software.
Lower card costs can remove the need for a surcharge at all. ChargeAutomation connects with 130+ payment gateways, including Stripe, PayPal, Adyen, Worldpay and Elavon, so you can choose a payment gateway that fits your costs. Guests can also pay with Apple Pay, Google Pay and 40+ local payment methods. Payments run with PCI DSS compliance, PSD2 and 3D Secure.
Clear charges can also mean fewer disputes, because guests see the full price before they pay. ChargeAutomation schedules payments, sends payment links and adds chargeback and fraud protection backed by a zero-chargeback guarantee. Properties can save up to 30 minutes per booking with this kind of automation. Start automating payments at chargeautomation.com.
ChargeAutomation payment features that support transparent pricing include:
Automatic invoices and receipts with custom line items
Tax handling on invoices
130+ payment gateways, including Stripe and Adyen
Apple Pay, Google Pay and 40+ local payment methods
Scheduled charges and payment links
3D Secure and PCI DSS compliant payments
Chargeback and fraud protection
Frequently Asked Questions
Can hotels and vacation rentals add a credit card surcharge?
Yes, in most US states, if they follow card network rules and state law. Visa allows surcharges only on credit cards, capped at 3% or the merchant discount rate if lower. Some states, such as Connecticut and Massachusetts, have been listed by Visa as banning surcharges.
Is a hotel credit card surcharge legal in every state?
No. Visa's February 2024 Q&A listed Connecticut, Maine, Massachusetts, Oklahoma and Puerto Rico as banning surcharges. Other states, such as New York and Colorado, add their own requirements. Check current state law before you charge.
Can a hotel charge a surcharge on debit cards?
No. Visa rules do not allow US merchants to surcharge debit or prepaid cards. This applies even when the guest selects credit at the terminal with a debit card.
Does the FTC junk fees rule apply to card surcharges at hotels?
Yes, in some cases. If guests can only pay by credit card, the FTC treats the card fee as mandatory, so it must be in the total price. If a fee-free payment option exists, the fee can be left out of the headline price but must be disclosed before payment.
What surcharge disclosure does Visa require from hotels?
Visa requires the surcharge to be disclosed at the point of entry, at checkout and on the receipt. The checkout notice must give the exact amount or percentage and say the fee is set by the merchant. It must also say the fee is not higher than the merchant discount rate.
