A new Pennsylvania law limits how much you can charge customers for paying by credit card—and requires you to tell them the amount before they complete the sale.
Most Pennsylvania retailers don't realize that credit card surcharges are now subject to strict disclosure and pricing rules under HB1780, a bill focused on payment fee transparency. If you currently add a surcharge to credit card transactions, or are considering it, this provision directly affects your business.
Under § 6403(a) of HB1780, every merchant in Pennsylvania—including small retailers—must disclose any credit card surcharge to the customer before the transaction is completed. This is not a suggestion; it's a legal requirement. The disclosure must be clear and separate from the total price.
Equally important: the surcharge itself is capped. You cannot charge more than your actual credit card processing cost. If your processor charges you 2.5% to accept Visa, you cannot surcharge customers 3% or 4%. The amount must match what you actually pay.
Many retailers use surcharges as a way to recover processing fees, especially in high-volume or thin-margin businesses. HB1780 doesn't ban this practice, but it does regulate it in two ways:
Transparency requirement: Customers must see the surcharge amount before they decide to complete the purchase. This typically means displaying it at checkout or on the payment screen, not after the card is charged.
Cost cap: You cannot use surcharges as a profit center. The amount must equal your documented processing cost, nothing more.
The law gives the Pennsylvania Bureau of Consumer Protection authority to set penalties for violations. This means non-compliance isn't just a customer service issue—it carries legal and financial risk. Penalties are not yet specified in the statute, but merchants should assume enforcement is possible.
HB1780 becomes effective 120 days after enactment (Section 2, Page 2). Retailers should verify the exact effective date with their legal counsel or trade association, but this window is relatively short. If you currently apply surcharges without pre-transaction disclosure, or if your surcharge exceeds your actual processing cost, you'll need to adjust your practices before the law takes effect.
Review your current surcharge practices. If you apply one, confirm:
If you don't currently surcharge, this law doesn't require you to start. It only regulates those who do.
Your payment processor or point-of-sale vendor may already offer compliant surcharge tools. It's worth asking whether your current system meets the disclosure requirement.
For detailed guidance specific to your retail model, contact your local chamber of commerce or state retail trade association—many have published HB1780 compliance resources for members.