Is Zero-Fee Credit Card Processing Really Legal?

Short Answer: Yes, zero-fee credit card processing is legal in most U.S. states when done correctly. EZ Payment helps you stay compliant by using a cash discount or dual pricing program that’s fully within legal guidelines.

Key Takeaways

• Zero-fee processing is legal in 48 states

• Cash discounting and dual pricing are compliant methods

• EZ Payment provides clear signage and support to keep you covered

• Mislabeling fees or surcharges can lead to legal trouble

If you’ve been wondering whether zero-fee credit card processing is just a too-good-to-be-true gimmick, you're not alone. As someone who works with small business owners every day, I get this question a lot: Is this actually legal? The answer? Yes—when it’s done right.

Zero-fee credit card processing, also known as cash discounting or dual pricing, is allowed in most places but comes with specific rules. These methods let you offer a discount to customers who pay with cash or ACH while credit card users cover the processing cost. It’s a great way to protect your margins—as long as you do it legally.

Some states, like Connecticut and Massachusetts, have tighter restrictions, particularly around surcharging. But cash discounting is legal in 48 states if implemented properly.

What gets businesses in trouble is labeling fees incorrectly, skipping disclosure, or not having clear signage. That’s where EZ Payment comes in. We provide everything you need to stay compliant—from printed signage to correct receipt formatting and onboarding your team.

Banks and card networks are also watching. So this isn’t a DIY job. It pays to work with someone who knows the ins and outs.

Bottom line: If you want to eliminate processing fees without raising red flags, you need to follow the rules. EZ Payment helps you do that confidently.

Visit https://ez-payment.com to learn more or schedule a free consultation.

People Also Ask

Can you process credit cards without a fee?

A: Not directly—there is always a fee involved. But with a cash discount program, you can pass that fee to the customer and avoid paying it yourself.

In what states is it illegal to charge a credit card processing fee?

A: Some states like Connecticut and Massachusetts prohibit surcharges, but cash discounting is still allowed when done correctly.

Can you pass credit card processing fees to customers?

A: Yes, using a legal cash discount or dual pricing setup. EZ Payment ensures your business stays compliant.

What is the new law for credit card fees?

A: Many states are updating surcharge disclosure laws. It’s more important than ever to have a compliant program.