How to Pass Credit Card Processing Fees to Your Customers
Updated February 2026 · 8 min read
If you're a plumber, electrician, landscaper, or handyman, processing fees are quietly eating 2.5–3.5% of every invoice. On $5,000/month in revenue, that's $125–175 going straight to payment processors. But here's what most contractors don't know: you can legally pass those fees to your customers in 48 states — and most customers don't mind at all.
What Is Credit Card Surcharging?
Credit card surcharging is the practice of adding a small fee to credit card transactions to cover the processing cost. It's different from a "convenience fee" (which applies to non-standard payment methods) or a "service fee" (which is a general business charge).
Surcharging specifically offsets the merchant processing fee — typically 2.5–3.5% for card-not-present transactions. The key distinction: surcharging is transparent. The customer sees the exact fee at checkout and can choose to pay by another method (like bank transfer) to avoid it.
Is It Legal? State-by-State Surcharge Laws (2026)
Yes — credit card surcharging is legal in 48 states as of 2026. However, there are important exceptions:
- Connecticut — State law prohibits credit card surcharges
- Massachusetts — State law prohibits credit card surcharges
- Puerto Rico — Territory law prohibits credit card surcharges
- Colorado — Surcharges capped at 2% (not the full processing fee)
Federal rules (from Visa/Mastercard):
- Surcharges cannot exceed 3% (Visa) or 4% (Mastercard)
- Must be disclosed before the transaction
- Cannot surcharge debit cards — only credit cards
- Must register with the card network (Visa requires 30 days notice)
Maple Street handles all of this for you — automatic state detection, compliant disclosures, and debit card exclusion. You just send the invoice.
Will Customers Actually Pay the Fee?
This is the #1 concern contractors have — and the data is clear: yes, they will.
- 97% of consumers already pay convenience fees for utilities, parking meters, and government services
- The average surcharge (3–4%) is less than most delivery tips
- Customers prefer paying a small fee online vs. writing a check and mailing it
- You can waive the fee for any individual customer or invoice
"I was nervous about adding the fee. Turns out, not a single customer complained. They'd rather pay 3.5% extra than drive to the bank for a check."
— Landscaper, Austin TX
How to Set Up Fee Passing (The Right Way)
- Check your state — Confirm surcharging is legal in your state (it is in 48 states)
- Notify card networks — Visa requires 30 days written notice. Mastercard requires registration.
- Update your disclosures — Post signage at point of sale, include on invoices, disclose before transaction
- Configure your invoicing app — Set up automatic surcharging in your payment settings
- Train your response — When customers ask, say: "We offer a 3.5% convenience fee for card payments. You can also pay by bank transfer with no fee."
Or skip all 5 steps — Maple Street does it automatically. The fee is disclosed on every invoice, debit cards are excluded, and prohibited states are blocked. Just send invoices and get paid in full.