Connecticut’s credit card surcharge law prohibits any business in the state from adding a fee to a transaction because the customer paid with a credit, debit, or charge card. The rule lives in Conn. Gen. Stat. § 42-133ff, was updated by Public Act 24-142 in 2024, and applies whether you’re paying in person, online, or over the phone.1Justia. Connecticut Code 42-133ff – Surcharge Based on Method of Payment Prohibited A violation is treated as an unfair trade practice, which means the state can fine the business and you can sue.
What Counts as an Illegal Surcharge
The statute defines a surcharge as any additional charge that increases the total of a transaction because of the payment method the customer chose.1Justia. Connecticut Code 42-133ff – Surcharge Based on Method of Payment Prohibited The label on the receipt doesn’t matter. The Connecticut Department of Consumer Protection notes that these fees often show up as a “transaction fee,” “processing fee,” or “non-cash adjustment.”2Connecticut Department of Consumer Protection. Credit Card Surcharge If the number you pay is higher than the posted price because you used a card, it’s a surcharge, and it’s illegal.
The ban covers credit cards, charge cards, and debit cards (including payroll and ATM cards). It also reaches digital wallets and payment apps that store a card, so a tap-to-pay transaction on a phone gets the same protection as a physical swipe.1Justia. Connecticut Code 42-133ff – Surcharge Based on Method of Payment Prohibited Prepaid gift cards and general stored-value cards aren’t named separately in the statute; whether a fee on one of those is covered can depend on how the card accesses funds.
Surcharge vs. Cash Discount
The easiest test is the posted price. Look at what’s on the shelf, the menu, or the website. If you pay more than that number because you used a card, it’s an illegal surcharge. If the posted price is the higher (card) number and you pay less for choosing cash, that’s a legal discount. The starting point is always the price the merchant advertised.
What Businesses Are Allowed To Do
Connecticut merchants who want to offset card-processing costs have legal options. They just can’t call the extra amount a fee added on top.
Cash Discounts
Cash discounts are permitted, and the Department of Consumer Protection recognizes two compliant ways to structure them in a brick-and-mortar setting:3Connecticut Department of Consumer Protection. What Are the Requirements With Respect to Cash Discounts
- Dual pricing, where both the cash price and the credit card price are displayed everywhere prices appear.
- Signage stating a specific dollar amount or percentage off for cash, posted in a highly visible location such as the register or menu. An example the department gives: “All listed prices are discounted by 3% if you pay in cash.”2Connecticut Department of Consumer Protection. Credit Card Surcharge
Vague notices like “fees may apply” or “ask about our cash pricing” don’t meet the clear-and-conspicuous standard the statute requires. You need to know the exact discount before you decide how to pay.
Online sellers have to disclose the cash discount in every section where pricing appears and again at checkout.3Connecticut Department of Consumer Protection. What Are the Requirements With Respect to Cash Discounts A discount mentioned only in terms-of-service fine print doesn’t qualify. If a fee shows up at online checkout only after you pick a card, that’s a surcharge dressed as a price adjustment.
Gas stations get an explicit carve-out. The statute voids any contract clause between a fuel retailer or distributor and a supplier that would block the retailer from offering a cash discount on gas.4Justia. Connecticut Code 42-133ff – Surcharge Based on Method of Payment Prohibited The two prices per gallon you see at many Connecticut pumps are a legal dual-pricing structure, not a surcharge.
Minimum Purchase Amounts
Merchants may set a minimum purchase for credit and charge card transactions, but only with clear advance disclosure.1Justia. Connecticut Code 42-133ff – Surcharge Based on Method of Payment Prohibited How the minimum has to be disclosed depends on the channel:
- In person: posted on the premises.
- Online or in an app: shown on the website or app before the transaction is completed.
- Over the phone: stated verbally before the sale is completed.
The Connecticut statute doesn’t cap the minimum amount, though the federal Dodd-Frank Act separately caps credit card minimums at $10. A sign hidden behind the register, or a minimum revealed only after you’ve ordered, doesn’t meet the disclosure requirement.
Penalties and What You Can Recover
Because a surcharge violation is automatically an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act (CUTPA), enforcement runs on two tracks.2Connecticut Department of Consumer Protection. Credit Card Surcharge
On the state side, the Department of Consumer Protection investigates complaints and can take administrative action. If the Attorney General brings a case and a court finds the violation was willful, the state can recover up to $5,000 per violation. Violating a court injunction that ordered the business to stop surcharging carries a penalty of up to $25,000 per violation.5Connecticut General Assembly. Chapter 735a – Unfair Trade Practices Each affected transaction can be counted separately.
You don’t have to wait for the state. Any consumer who suffers an actual loss of money or property from an illegal surcharge can sue under CUTPA. Courts may award punitive damages where the business acted with reckless indifference to a customer’s rights, and attorney’s fees are recoverable, which makes smaller claims worth bringing. Courts have awarded punitive damages under CUTPA even when the plaintiff’s out-of-pocket loss was small.
How To Report a Surcharge
If a Connecticut business surcharges you, build a record before you file. Keep the receipt showing the added fee, note the date and location, and photograph any posted signage or the absence of it. Then file a complaint with the Connecticut Department of Consumer Protection through its website at portal.ct.gov/dcp.2Connecticut Department of Consumer Protection. Credit Card Surcharge
If the problem also involves your card issuer or payment processor, you can file a separate federal complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint after first trying to resolve the issue with the company; the company generally has 15 days to respond.6Consumer Financial Protection Bureau. Credit Cards The CFPB can also be reached at (855) 411-2372.