West of Mpls MN about 50 miles on Hwy 12 | Minnesota retailers can choose to pass credit card payment and contactless payment processing fees onto customers as a specific surcharge if we follow strict state and federal guidelines instead of raising retail prices to everyone to cover payment processing fees. A much better option than advertising/offering a cash discount price IMO.
Our credit card processor charges our customers 2.14%. There is no cost to us for our credit card processors services and machines. We also accept cash and checks so that our customers can choose to not pay a "convenience surcharge". But over 90% of our customers choose to pay the 2.14%
Mandatory fees cannot be hidden, and surcharges cannot exceed card network limits.
Minnesota law limits the surcharge to 5% of the purchase price. However, federal law caps it at 4%, and major card networks restrict it to 3% to 4%, so the lower federal/network limits must be followed.
Surcharges are strictly prohibited on debit card transactions.
Retailers must disclose the surcharge clearly to customers. In-store, this requires a conspicuously posted sign at the store, plus an oral notification at the point of sale.
The fee cannot be unavoidable. For example, if a customer pays with cash or check, no fee is charged.
Under state regulations, any credit card surcharge applied to a transaction is also subject to Minnesota sales tax.
Edited by CMN 6/9/2026 08:00
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Credit cards vs cash
