Yes. Indiana does not have a state law that prohibits credit card surcharging, so Indiana businesses can add a surcharge to credit card payments to help cover their processing costs. A few rules apply, and they matter. Surcharging is allowed on credit cards only, never on debit or prepaid cards. The surcharge generally cannot be more than about 3% (the Visa and Mastercard limit), and it can never be more than what it actually costs you to accept the card. You also have to disclose the surcharge to your customers and notify the card networks before you start.
This page is general information, not legal advice. Surcharging rules can change, so confirm your situation with PayPoint and your own legal counsel. Last reviewed: June 2026.
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The short answer: what Indiana law says (and doesn’t say)
Indiana is not one of the states with a law on the books that prohibits credit card surcharging. The National Conference of State Legislatures, which tracks these statutes, lists no Indiana surcharge prohibition. For local business owners, that is the key point: nothing in Indiana state law stops you from passing a credit card surcharge to your customers.
“Not prohibited” is not the same as “no rules,” though. The real limits on surcharging come from federal law and from the card networks (Visa, Mastercard, American Express, and Discover), and those apply to every Indiana merchant. A handful of other states, such as Connecticut, Massachusetts, and Maine, do restrict surcharging, but Indiana is not among them. If you operate in more than one state, check the current rules for each.
Surcharge, dual pricing, or cash discount? Know the difference
Before you decide how to handle card fees, it helps to know the four terms people mix up. They are not the same, and the differences change how your customers feel about the charge.
| Method | What it is | Who it applies to |
|---|---|---|
| Surcharge | An extra fee added to a credit card payment | Credit cards only |
| Convenience fee | A flat fee for paying through an alternative channel (for example, online instead of in person) | Set by channel, not card type |
| Cash discount | A lower price for customers who pay with cash | Everyone (cash pays less) |
| Dual pricing | Two posted prices, a cash price and a card price | Everyone sees both up front |
Many Indiana businesses prefer dual pricing because customers see a cash price rather than what can feel like a penalty for using a card. The mechanics are similar to surcharging, but the customer experience is friendlier. If you want the full picture of how dual pricing works for a Northwest Indiana business, see our guide to dual pricing.
Credit cards only: you can’t surcharge a debit card in Indiana
One rule trips up more businesses than any other: you can surcharge credit cards, but you cannot surcharge debit cards. This is federal law, so it works the same in Indiana as anywhere else.
The restriction comes from the Durbin Amendment, part of the federal Dodd-Frank Act, which prevents businesses from passing debit card processing fees to customers through a surcharge. It applies even when a customer runs a debit card as “credit” at the terminal. Prepaid cards are treated the same way.
In practice, that means your payment system has to tell the difference between a credit card and a debit card at the moment of sale and apply the surcharge only to credit transactions. Doing this by hand is where mistakes happen, which is one reason most businesses use a processor that sorts it out automatically.
How much can you surcharge in Indiana?
There are two ceilings on how much you can surcharge, and the lower one always wins.
First, the card networks set a cap. Visa and Mastercard generally limit a credit card surcharge to about 3%.
Second, and just as important, you can never surcharge more than your own cost of acceptance, which is what it actually costs you to accept that card. If your effective rate on a card is 2.6%, your surcharge cannot be 3%. A surcharge is meant to recover your cost, not to add a markup.
So the honest answer to “can I charge a 3% credit card fee in Indiana?” is: often yes, but only if 3% is at or below what that card costs you to accept, and only on credit cards. A local processor can show you your real cost on a recent statement so you set the rate correctly.
The rules you have to follow to surcharge compliantly
If you decide to surcharge, a few steps keep you compliant. Getting them wrong can lead to chargebacks, customer disputes, or even losing your ability to accept cards, so this is worth doing carefully.
- Notify the card networks and your processor first. Visa requires at least 30 days’ advance notice before you begin surcharging, and the other networks have similar requirements.
- Surcharge credit cards only. Never apply a surcharge to debit or prepaid cards.
- Disclose the surcharge clearly. Post a notice where customers enter and at the point of sale, and show the surcharge as a separate line item on every receipt.
- Cap the surcharge at your cost of acceptance. Keep it at or below what the card costs you, and within the network limit.
- Review it regularly. Your processing rates and the rules both change, so check your setup periodically.
This is the part where a local partner earns its keep: setting up the right disclosures, signage, and network notifications so you are compliant from day one. Here is how a compliant surcharging program comes together.
Setting it up the right way with a local Northwest Indiana partner
PayPoint Systems is an independent Northwest Indiana merchant services provider. We offer payment solutions through Payroc, which means we help you choose and set up the right program. We are not the card processor ourselves; we are the local team that makes sure it is done correctly.
For businesses across Lake and Porter counties, we set up compliant surcharging and dual pricing programs, handle the card network notifications and compliant signage, and walk you through the numbers in plain English. If dual pricing is a better fit for your customers than surcharging, we will tell you. You can see how it works on our dual pricing page.
The simplest place to start is a free look at what your current card fees actually cost.
Frequently asked questions: surcharging in Indiana
Is credit card surcharging legal in Indiana?
Yes, for credit cards. Indiana has no state law prohibiting credit card surcharging, so businesses may add a surcharge to credit card payments as long as they follow federal rules and card network requirements. Surcharging is not allowed on debit or prepaid cards. This is general information, not legal advice.
Can I surcharge a debit card in Indiana?
No. The federal Durbin Amendment prohibits surcharging debit cards, even if the customer selects “credit” at the terminal. Prepaid cards are excluded too. Surcharging applies to credit cards only.
How much can I charge as a surcharge?
Generally up to about 3%, the Visa and Mastercard limit, and never more than your actual cost of accepting that card. If a card costs you 2.5% to accept, your surcharge cannot exceed 2.5%.
Can I pass credit card fees to my customers in Indiana?
Yes. You can do it through surcharging, or through the more customer-friendly dual pricing model, where you post a cash price and a card price. Dual pricing is often easier for customers to accept.
What is the difference between a surcharge and dual pricing?
A surcharge is an extra fee added to a credit card payment. Dual pricing shows two prices up front, one for cash and one for card, so customers choose before they pay. See our dual pricing guide for details.
Which states do not allow surcharging?
Most states allow it, but a few restrict it, and the rules have shifted in recent years. Indiana allows credit card surcharging. For other states, confirm the current rules with the card networks and your own legal counsel; the NCSL surcharge-statutes summary is a good starting point.
Disclaimer: This article is general information, not legal or financial advice. Surcharging rules are set by state law and the card networks (Visa, Mastercard, American Express, and Discover) and can change. Confirm your situation with PayPoint and your own legal counsel. Last reviewed: June 2026.
Find out what your card fees actually cost
Get a free, no-obligation statement review from a local Northwest Indiana team. We will show you whether surcharging or dual pricing makes sense for your business, with no guesswork and no pressure.
Request your free statement audit » · or call (219) 699-8306