By George Mayo, owner of NJ POS Systems. Published October 26, 2026.
New Jersey's credit card surcharge law, P.L.2023, c.146, lets a business add a surcharge to a credit card payment only up to the actual cost it pays to process that card, and only when the amount is disclosed before the customer pays.
The law was signed in August 2023 and is codified at N.J.S.A. 56:8-156.1 and 56:8-156.2. It is enforced under the Consumer Fraud Act by the Division of Consumer Affairs, which published a plain-language FAQ in December 2023. This guide covers what the statute requires, what the card brands add on top, and what the register has to do so you never think about it.
How much can a New Jersey business surcharge?
No more than the actual cost of processing that card. The statute sets no fixed percentage. If your processor charges you 2.6 percent on a transaction, 2.6 percent is the ceiling for that transaction, whether the sale happens in person, online or over the phone.
The card brands add their own ceiling. Visa caps credit card surcharges at 3 percent in the United States. Where the state cap and the brand cap differ, the lower number controls. A business that pays 2.3 percent cannot charge 3 percent in New Jersey.
Surcharging is optional. No business is required to add one, and many New Jersey owners choose a cash discount instead, which is covered below.
What must be disclosed, and where?
The amount of the surcharge, as a percentage or a dollar figure, must be shown before the customer incurs the charge. A sign that only says a surcharge applies does not satisfy the law.
- In-person sellers: post the amount on a sign at the point of entry and at the point of sale.
- Restaurants: post it where customers can see it and print it on the menu.
- Online sales: show the amount on the checkout page before the order is placed.
- Phone orders: state the amount verbally before the card is processed.
The receipt should also show the surcharge as its own line. The statute focuses on disclosure before the sale; the receipt line is how you prove it afterward.
Does the law apply to cash discounts?
No. The 2023 law regulates surcharges, which add an amount to the price for card payers. A cash discount posts one price that includes the cost of accepting cards and takes an amount off for customers who pay cash.
Cash discounts still have rules. The card brands require clear signage and a receipt line, and the posted price has to be the card price. A bill introduced in the 2026 session, S595, would add notice requirements for cash discounts and credit card minimums. As of this writing it has not been enacted.
Can you surcharge debit cards in New Jersey?
Not under card brand rules. Visa and Mastercard allow surcharges on credit cards only. Debit and prepaid cards run at the posted price, even when the customer chooses credit at the keypad. That is a network rule, not a state one, and it applies in every state.
This is the detail that trips up most do-it-yourself setups. The register has to recognize a debit card by its number and skip the surcharge automatically. Staff cannot be expected to ask.
How does a POS keep you compliant?
The register does the work. It identifies the card type, applies the surcharge or the cash discount at the right amount, prints the line on the receipt, and the signage kit covers the entry and the counter.
On the Genius systems we install, the program is configured on the merchant account before go-live. Nobody at the counter calculates anything, and the receipt shows the same line every time. If your current terminal cannot do this, it is the first thing to fix before you post any sign.
What happens if you get it wrong?
A violation is treated as a violation of the New Jersey Consumer Fraud Act, which carries civil penalties, and complaints go to the Division of Consumer Affairs. The common mistakes are a surcharge above actual cost, a sign without the amount, and a surcharge applied to a debit card.
All three are configuration problems. A rate review and a correct setup remove them before the first customer notices.
Sources
About The Author
George Mayo owns NJ POS Systems and co-founded Swiped. He has worked in merchant services since 1994, when he and Mario Parisi founded Merchant Services Inc, which they sold in 2014. He still reviews statements and quotes himself. More about the company.
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