Do Minnesota businesses have to include a credit card surcharge in the advertised price?
Quick answer
Not if it is truly optional. The Minnesota Attorney General says a card surcharge that customers can avoid by paying cash is not a mandatory fee under Minn. Stat. 325D.44, subd. 1a, so it can stay out of the listed price. Fees customers cannot reasonably avoid must be included. The Attorney General can seek civil penalties up to $25,000.
Short version: the answer is above. If you need to comply, the Minnesota service charge & all-in price kit gives you the templates, checklist and official sources for this law. $49 one-time, instant download.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Law | Minn. Stat. 325D.44, subd. 1a; applies to contracts from January 1, 2025 | Official source |
| Mandatory fee | A fee that must be paid to buy, is not reasonably avoidable, or that a reasonable person would expect to be included; government taxes excluded (subd. 1a(b)) | Official source |
| Card surcharges | Attorney General FAQ: an optional surcharge the consumer can reasonably avoid, for example by paying cash, is not a mandatory fee | Official source |
| Other laws | The FAQ adds that how you communicate a surcharge must still comply with other consumer protection laws | Official source |
| Automatic gratuities | Food and beverage establishments, including hotels, comply by disclosing the percentage in every priced offer or ad (subd. 1a(h)) | Official source |
| Penalty | Civil penalty set by the court, up to $25,000, in Attorney General actions; injured people can sue for damages, costs and attorney fees (Minn. Stat. 8.31, subds. 3 and 3a) | Official source |
| Last verified | October 20, 2026 | Astor Ventures |
When is a card surcharge a mandatory fee?
Under subdivision 1a, a fee is mandatory if it must be paid to buy the item, is not reasonably avoidable, or a reasonable person would expect it to be included. The Attorney General's FAQ says that if customers could reasonably avoid the surcharge by paying with cash, it is optional and does not have to be in the advertised price.
Does the same apply to debit card fees?
The Attorney General's FAQ treats debit card charges the same way: if paying by debit card is optional, the extra charge is not a mandatory fee. It also warns that merchant costs differ depending on how debit sales are processed, so anything you tell customers about those costs must be accurate.
What is the penalty for hiding a mandatory fee?
Leaving a mandatory fee out of the listed price is a deceptive trade practice. Under Minn. Stat. 8.31 the Attorney General can ask a court for a civil penalty of up to $25,000, and people injured by the practice can sue for damages, costs and reasonable attorney fees.
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What else do people ask?
Does the law ban credit card surcharges?
No. The Attorney General says the law governs how fees are disclosed, not which fees a business may charge.
Can I still add sales tax at checkout?
Yes. Taxes imposed by a government on the sale are not mandatory fees.
When did the law start?
January 1, 2025; the Attorney General says it does not apply to contracts signed before then.
Is this legal advice?
No. General information only.
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