Costs continue to rise everywhere, and restaurants are no exception. What could be adding to higher prices are additional charges just for paying with your credit card.
What Are Credit Card Surcharges?
Accepting credit cards as a payment method costs businesses, so they may pass that cost off onto the customer in the form of surcharges. These fees vary by state but cannot exceed 4%. And surcharges are actually illegal in Connecticut, Massachusetts and Puerto Rico.
Examples of the language you might see on your receipt or a sign somewhere in the establishment may include:
— “We impose a surcharge of X% on credit cards that is not greater than our cost of acceptance.”
— “A X% credit card fee will be applied to all credit card transactions. Cash and debit card transactions are not subject to a surcharge.”
— “A surcharge of X% applies to credit card payments to cover processing costs.”
Are Surcharges Increasing?
Yes and no. Surcharges are capped at 4%, but they’re popping up in more places. According to J.D. Power’s 2025 U.S. Merchant Services Satisfaction Study, “34% of merchants are adding surcharges for customer purchases made using credit cards.” In 2021, less than 5% of businesses charged surcharge fees, according to estimates from payments consultancy the Strawhecker Group.
It’s important to remember surcharges weren’t always a thing. A settlement of a class action lawsuit against Visa and Mastercard in 2013 allowed merchants to reverse a long-running ban on credit card surcharge fees. So, since 2013, more and more merchants have been imposing surcharges. But more recently, that number has skyrocketed. According to the Nilson Report, in 2024, swipe fees for credit cards and debit cards combined totaled $187.2 billion — up 70% since the COVID-19 pandemic.
According to the same report, swipe fees for Visa and Mastercard totaled $111.2 billion in 2024, up from $100 billion in 2023. That’s an increase of more than 10% in one year. And these fees certainly have detractors.
“As Main Street small businesses and American families continue to face economic uncertainty, the giant card networks and Wall Street banks continue to take more money out of their pockets every day,” Christine Pollack, Merchants Payments Coalition executive committee member and vice president of government relations at the Food Industry Association, said in a news release.
How to Combat Rising Surcharges
It may be a bit of an annoyance, but get into the habit of finding out what an establishment’s surcharge fees are before you pay.
Picture it: You’re out with friends, and the bill comes. You slap your credit card down, waving off your friends, insisting you got it. Because your credit card earns 2% cash back and you want those sweet, sweet rewards. But the restaurant charges a 3.5% surcharge fee. You’ve now earned negative rewards.
Unfortunately, there isn’t much you can do on a grand scale to combat these charges. You’ll have to make the changes at the table.
Do the Math
You’ll now have to do the math and make sure whatever credit card you’re using earns as much or more back than the surcharge fee. But the math gets a little murkier when you’re earning points instead of simply cash back.
So, depending on what your points are worth, or even if you have a sign-up bonus to meet, you could still come out ahead.
[Read: Best Credit Cards.]
Stack Rewards
You can stack rewards by using dining rewards programs. This is especially beneficial if you have an airline or hotel credit card.
For example, American Airlines and Delta have dining programs that allow you to earn between one and five miles per dollar spent toward your account, depending on your membership tier.
IHG has a dining program that allows you to earn between one and eight points per dollar spent at eligible restaurants, and Marriott has a program that allows you to earn at least four points per dollar spent.
There are also nontravel dining programs you can look into if you don’t have a travel credit card. Neighborhood Nosh and Rakuten Dining, for instance, allow you to earn cash back at participating restaurants.
With Neighborhood Nosh, you can earn 3%, 5% or 10% cash back depending on your membership level. With Rakuten Dining, you can earn 5% cash back, no membership tiers required. And — good news for American Express cardholders — you can earn American Express Membership Rewards® points instead of cash back.
Take Your Business Elsewhere
If you did the math and it’s still not working out in your favor, you could take your business elsewhere. Granted, that’s little comfort if you want to try a new, trendy spot or you just really like the food.
You can also always swap your credit card for your debit card or cash in those instances. Or simply use your credit card with a sigh of resignation. Because as of right now, surcharges aren’t going anywhere.
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Restaurant Surcharges Could Make Your Credit Card Rewards Pointless originally appeared on usnews.com
