How to Legally Add a Processing Fee to Your Invoices (State-by-State)
Surcharging is legal in most U.S. states — but the rules matter. Here's what you need to know before adding a fee line to your invoices.
Disclaimer: This article provides a general overview. Always verify your state's current regulations and consult a legal or financial professional before implementing surcharging on client invoices.
Surcharging — adding a fee to a client's invoice when they pay by credit card — is a popular way to pass the cost of payment processing on to the client who benefits from using the card. It's legal in most U.S. states, but there are disclosure requirements and caps you must follow.
The Two National Rules (Always Apply)
Rule 1: Cap at Actual Cost
You can never charge a surcharge higher than your actual processing fee. If Stripe charges you 2.9%, you can only pass on up to 2.9%.
Rule 2: Disclose Before Payment
The surcharge must be disclosed before the transaction is processed — not as a surprise on the receipt afterward.
State-by-State Surcharging Rules
Legend: ✅ Allowed ⚠️ Restricted ❌ Banned. Always verify current state law.
How to Add It to an Invoice Correctly
Use the calculator to find the exact surcharge amount to add so your total is precise and professional.
Calculate Your Surcharge →