Credit card surcharge laws in Alabama (2026)
Allowed, card-network rules only
You can surcharge credit cards in Alabama under card-network rules; the state adds no ban, cap or disclosure statute, but from Sept. 1, 2026 the fee must be a separate, identifiable line on the receipt to stay out of the sales-tax base.
The details
| Disclosure | No state disclosure statute; Deceptive Trade Practices Act (Code of Ala. 8-19-5) deception standard only. For sales tax from 2026-09-01 the fee must be 'separate and identifiable from other charges' on the receipt (Ala. Dept. of Revenue FAQ). |
|---|---|
| Debit and prepaid | Not restricted by state law; network rules govern. Act 2026-587's tax exclusion covers fees on debit and prepaid as well as credit. |
| Statute | No state statute on credit card surcharges found |
| Last change | Act 2026-587 (SB 221), Code of Ala. 40-23-26.2, effective 2026-09-01: credit card transaction fees excluded from the sales and use tax base |
| Source check | Verified on the official site |
| Checked | Oct 7, 2026 |
How this entry was checked
Absence confirmed in the official Code of Alabama heading index on ALISON (49,270 section headings): 'surcharge' hits are interest, license, utility and local-act surcharges only; 'credit card' hits are bank chartering, government card acceptance (11-103-1 lets counties and cities add a surcharge or convenience fee not above their actual transaction fee; 41-1-60 state agencies), fraud and campaign finance. 8-19-5 read in full: no surcharge language. SB 221 enrolled text read: 'credit card transaction fee' means 'a fee assessed on purchases made by debit or credit card to offset interchange fees charged to a merchant or seller.' Signing date (2026-04-22) from a secondary source. No AG guidance found.
What this means for each program in Alabama
| Surcharging | Allowed under the card-network rules below. No state cap or disclosure rule beyond those was found. |
|---|---|
| Cash discounting | Permitted under the card-network rules. The posted price is the card price and cash pays less; every card, debit included, pays the posted price. |
| Dual pricing | Treated like a cash discount in practice (our reading; no Alabama statute addresses dual pricing): the card price shown first with the cash price beside it, every card pays the card price, cash pays the cash price. |
Card-network rules apply everywhere a surcharge is allowed
- Credit cards only. Never debit or prepaid, even when the customer presses "credit."
- Capped at 3% and never more than your own cost of accepting credit cards.
- Disclosed at the entrance and at the register, and printed as its own line on the receipt.
- Your processor (acquirer) gets written notice at least 30 days before you start.
Source: Visa Core Rules and Visa Product and Service Rules, April 2026 edition, sections 5.5.1.5 to 5.5.1.9. Mastercard's rules are comparable; its current rulebook text was not verified for this guide.
Sources
- No state statute on credit card surcharges found. Source read: alison.legislature.state.al.us
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Get my fit checkThis guide is general information, not legal advice. Each entry was checked against the official statute, regulation, or court decision linked on the page, as of the date shown, by Cardeva, LLC. Laws change, legislatures are in session, and court rulings can alter the practical status of a statute that remains on the books. Before starting any surcharge, cash-discount, or dual-pricing program, confirm the rules for your state and your payment types with your processor and your own attorney. Any program Cardeva sets up starts only after your processor approves it in writing; rely on that approval and your own attorney, not this page. Nothing here is a guarantee of any outcome. See our Terms of Use. Think something has changed? Use the contact form or call (612) 250-6132.