Massachusetts Credit Card Surcharge Law
Massachusetts credit card surcharge law bans surcharging outright. No dealership operating in Massachusetts can add a surcharge to a card transaction, full stop, no cap, no workaround. The ban covers credit card sales statewide, and the state enforces it through the Division of Banks.
Massachusetts Bans Credit Card Surcharging
One of only three states with a flat statutory ban. As of July 2026, it is actively enforced.
Massachusetts is one of three states, alongside Connecticut and Maine, where credit card surcharging is banned outright. The ban is written directly into state statute, not agency guidance, and it is not a dead letter: the Massachusetts Division of Banks oversees compliance, and no court has struck the ban down. A dealership that adds a credit card surcharge in Massachusetts is not working a gray area. It is breaking the law.
The ban sits at Mass. Gen. Laws ch. 140D, § 28A, part of the state's long-standing consumer credit cost disclosure law. As of July 2026, the ban is in force statewide, with no recent amendment and no exception for auto dealerships.
| Question | Answer |
|---|---|
| Status | Banned |
| Cap | Not applicable, surcharging is prohibited |
| State statute | Mass. Gen. Laws ch. 140D, § 28A |
| Card network caps | Never come into play, the state ban comes first |
Massachusetts is the exception, not the rule: surcharging is legal in the other 47 states. The Visa and Mastercard surcharge caps that govern those states never come into play here, because state law prohibits the surcharge before any network rule matters. See the full table at credit card surcharge laws by state.
Mass. Gen. Laws ch. 140D, Section 28A
What the ban actually covers, and the law it lives inside.
Massachusetts's ban on credit card surcharges lives at Mass. Gen. Laws ch. 140D, § 28A(a)(2), part of the state's Consumer Credit Cost Disclosure Act, its truth in lending law. The operative text is direct: "No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means." It is long-standing law, with no recent amendment, and it bars any seller from imposing a surcharge on a customer who chooses to pay by credit card instead of cash or check.
The Ban Reaches Every Department
A card fee on a service repair order, a parts counter ticket, or a vehicle deal in F&I all count as a surcharge under the statute. The rule does not carve out any department or transaction type at a dealership.
What a Violation Costs
A real enforcement agency, real penalties, and a law that has held up.
Massachusetts enforces Chapter 140D through the Division of Banks, overseen by the state's Commissioner of Banks. A willful and knowing violation of the chapter is punishable by a fine of not more than $5,000, or imprisonment for not more than one year, or both.
The ban has held up. As of July 2026, no court has struck the statute down, and it remains in force statewide.
What This Means at the Counter
In Massachusetts, the counter runs on a different rule than most of the country.
A Massachusetts dealership cannot add a credit card surcharge at any counter. Every department runs under the same rule: sales, service, parts, F&I, body shop. No card fee at any counter, and no percentage line tied to card payment on any receipt.
That does not put Massachusetts stores outside what we do. Dealerships are all we do, and surcharging is one part of the program. We set up dealership card processing for Massachusetts stores without it. Book a demo and see what that looks like for your store. For how the program works where surcharging is legal, see the surcharge program page or the step by step on the how it works page.
Straight Answers on Massachusetts Rules
No. Massachusetts bans credit card surcharges outright under Mass. Gen. Laws ch. 140D, § 28A. It is one of only three states with a flat ban, alongside Connecticut and Maine.
No. The card network caps only matter where state law allows surcharging. Massachusetts law prohibits the surcharge before any network rule comes into play, so there is no cap to work under. The ban is the whole rule.
The Massachusetts Division of Banks enforces Chapter 140D. A willful and knowing violation of the chapter can bring a fine of up to $5,000, up to a year in jail, or both.
No. As of July 2026, no court has struck the statute down. The ban remains in force statewide.
Debit, prepaid, and gift cards can never carry a surcharge anywhere in the country, under card network rules. The Massachusetts statute bans credit card surcharges specifically. For pricing and program questions beyond state law, see the FAQ page.
Straight Answers on Massachusetts
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