Credit card surcharge laws in California (2026)
Allowed with state conditions
Merchants surcharge in California in practice because the statutory ban (Civ. Code 1748.1) was held unconstitutional as applied in Italian Colors v. Becerra, but the Honest Pricing Law means a surcharge that customers cannot avoid must be built into the advertised price, and the ban is still on the books with a private treble-damages remedy.
The details
| Cap | No state cap; network cap applies. |
|---|---|
| Disclosure | Civ. Code 1770(a)(29) (SB 478, effective 2024-07-01): advertised price must include all mandatory fees except government taxes/fees and actual shipping. AG FAQ: a card fee is not mandatory if the customer can pay another way (cash); a card-only business must include it in the advertised price. Restaurant/bar/grocery carve-out (SB 1524) requires the fee to be clearly and conspicuously displayed with its purpose wherever the price appears. |
| Debit and prepaid | 1748.1 speaks only of credit cards; no state rule on debit beyond network rules. |
| Statute | Cal. Civ. Code 1748.1 (surcharge ban, still codified); Cal. Civ. Code 1770(a)(29) (all-in pricing) |
| Court decision | Italian Colors Restaurant v. Becerra, 878 F.3d 1165 (9th Cir. 2018): 1748.1 violates the First Amendment as applied to the plaintiff merchants; AG enjoined from enforcing against them |
| Last change | 1770(a)(29) last amended by AB 1170 (Stats. 2025, ch. 67), effective 2026-01-01 |
| Source check | Verified on the official site |
| Checked | Oct 6, 2026 |
How this entry was checked
1748.1(a) still reads 'No retailer ... may impose a surcharge on a cardholder who elects to use a credit card' and expressly allows cash discounts offered to all buyers; 1748.1(b) gives treble damages plus fees for willful violators who fail to refund within 30 days. The Ninth Circuit ruling is formally as-applied, so residual private-suit risk cannot be ruled out, though no AG enforcement since 2018 was found and the AG's SB 478 FAQ treats avoidable card fees as lawful. Statute, opinion and AG FAQ read on the official sites.
What this means for each program in California
| Surcharging | Allowed, but only if you meet the state conditions above on top of the card-network rules. Equipment and signage have to be set up for California specifically. |
|---|---|
| Cash discounting | Permitted. The posted price is the card price and cash pays less. California law speaks to discounts; see the Disclosure row above and the statute before setting the program. |
| Dual pricing | Treated like a cash discount in practice (our reading; the statute does not use the term), so California's discount rules apply: the card price shown first with the cash price beside it, and cash pays the cash price. Check the statute for which payment types must get the lower 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
- Cal. Civ. Code 1748.1 (surcharge ban, still codified); Cal. Civ. Code 1770(a)(29) (all-in pricing)
- Italian Colors Restaurant v. Becerra, 878 F.3d 1165 (9th Cir. 2018): 1748.1 violates the First Amendment as applied to the plaintiff merchants; AG enjoined from enforcing against them
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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.