Credit card surcharge laws in Iowa (2026)
Allowed, card-network rules only
You can surcharge credit cards in Iowa under card-network rules; the state has no surcharge statute, and its Consumer Credit Code only says a cash discount of 5% or less is not a finance charge.
The details
| Statute | No state statute on credit card surcharges found (related: Iowa Code 537.1301(21)(a)(1), cash-discount carve-out) |
|---|---|
| Source check | Verified on the official site |
| Checked | Oct 6, 2026 |
How this entry was checked
Text-searched official 2026 Iowa Code PDFs for chapters 537, 714, 714H, 553 and 535 on legis.iowa.gov: the only 'surcharge' hits are the dishonored-check surcharge in 537.2501(1)(g). Verbatim: 'a cash discount of five percent or less of the stated price of goods or services which is offered to the consumer for payment by cash, check or the like ... is not part of the finance charge' (537.1301(21)(a)(1)).
What this means for each program in Iowa
| Surcharging | Allowed under the card-network rules below. No state cap or disclosure rule beyond those was found. |
|---|---|
| Cash discounting | Permitted. The posted price is the card price and cash pays less. Iowa law speaks to discounts; see the summary above and the statute before setting the program. |
| Dual pricing | Treated like a cash discount in practice (our reading; no Iowa statute addresses dual pricing), so Iowa'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
- No state statute on credit card surcharges found (related: Iowa Code 537.1301(21)(a)(1), cash-discount carve-out). Source read: legis.iowa.gov
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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.