Can you add a credit card surcharge in Texas?

Rules checked October 19, 2026 from official sources. Laws and card network rules change, and this isn’t legal advice. Check with your payment provider and your state (or province) before you add a surcharge.

The short answer

Texas has a law that bans credit card surcharges. A federal court ruled in 2018 that it was unconstitutional as applied to certain merchants. The Texas Attorney General says that ruling normally binds only the parties to the case.

So we can’t tell you surcharging is allowed in Texas. If you’re thinking about it, talk to a lawyer first. The card network rules below apply either way.

What the Texas statute says

Texas Business and Commerce Code section 604A.0021(a) says:

“In a sale of goods or services, a seller may not impose a surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check, or a similar means of payment.”

That wording is quoted in Texas Attorney General Opinion KP-0257 (Texas AG Opinion KP-0257, 2019).

The statute has exemptions, including counties and other governmental entities that accept cards for fees, taxes or charges.

The court ruling, and what the Attorney General says about it

A federal district court held the statute unconstitutional as applied to certain merchants, in Rowell v. Paxton (2018).

In the same opinion, the Texas Attorney General says an as-applied ruling normally binds only the parties. It also says the statute may still apply where a surcharge exceeds the swipe fee (Texas AG Opinion KP-0257).

In plain words: the ruling did not wipe the law off the books for every business. And a surcharge bigger than what the card actually costs you is where the AG says the statute may still bite.

What we couldn’t check

We want to be clear about the limits of this page:

• We read the statute’s wording through the AG opinion. The official statute site didn’t load for us, so we couldn’t read the current text directly.
• We haven’t checked whether the 2025 Texas legislative session changed anything.
• We haven’t read the Rowell v. Paxton ruling itself. Everything we say about it comes from the AG opinion.

Card network rules that apply in Texas (and everywhere)

Even where a surcharge is allowed, Visa and Mastercard set their own limits:

• Credit cards only. Visa says “debit cards and prepaid cards cannot be surcharged” (Visa Q&A). Mastercard says surcharges “are not allowed on Debit Mastercard or Mastercard prepaid cards” (Mastercard).
• Caps. Visa: the lower of your merchant discount rate for that card or 3%. Mastercard: the lower of your average effective rate for Mastercard credit or 4%.
• 30 days’ notice. To your acquirer for Visa, and to both Mastercard and your acquirer for Mastercard.
• Signs and receipts. Visa wants notice at the point of entry, at the point of sale, and on every receipt.

Amex has no stated percentage cap. Its rule is that fees on Amex can’t be higher than on other payment products. Full detail is on our surcharge rules page.

What this means in practice

• The safest reading is that the ban still matters. The court ruling covered certain merchants, and the AG says it binds only the parties.
• Never go above your real card cost. The AG says the statute may still apply where a surcharge exceeds the swipe fee. Staying under it does not make a surcharge legal in Texas. It only avoids the case the AG names.
• Get advice in writing. Ask a Texas lawyer, and ask your provider what it allows.
• Look at a cash discount carefully. Federal law protects real discounts, but we haven’t read a Texas source on them.

The other option is to lower what cards cost you. That avoids the legal question entirely.

Keep reading

• Credit card surcharge rules by state: card network rules and every state we’ve verified.
• Cash discount programs, explained: where the federal line is.
• Credit card processing fees, explained: what each line on your statement means.