Colorado Approves Limited Surcharges on Credit Card Payments.
Surcharging credit card transactions is an increasingly common way for firms to cover the cost of processing credit card transactions. However, there is no uniform federal regulatory regime that addresses credit card surcharging. Rather, credit card surcharging is governed by a patchwork of federal and state laws that govern whether and how firms can impose credit card surcharges. To add further complexity to this issue, recent court decisions have called into question the legality of certain state restrictions on credit card surcharge regimes.
On July 7th, 2021, Colorado formally legalized surcharging credit cards but added a twist. Instead of following suit with the card associations and 46 states that already legally allow for a maximum surcharge of 4%, Colorado merchants will be effectively capped at 2%.
Unified has partnered with D.C.-based law firm Orrick, Herrington & Sutcliffe LLP to prepare a legal whitepaper to help you understand surcharge rules and how to surcharge legally. Contact the A/R and Payment Experts at 888.440.0117 or B2B@GoUnified.com to receive your complimentary copy of the whitepaper.