What Fees Can South Carolina Businesses Charge for Different Payment Methods?

State rules differ for credit cards, debit cards, cash, and checks

BC News Staff Writer

South Carolina businesses can charge certain fees depending on how customers choose to pay, but the rules differ for credit cards, debit cards, cash, and checks. Some fees are allowed under state law, while others are restricted by federal regulations or card‑network policies. These differences can make checkout practices vary from one business to another.

Credit‑card surcharges are allowed in South Carolina as long as businesses follow national rules set by Visa and Mastercard. These rules generally limit the surcharge to no more than 4% of the purchase price or the merchant’s actual processing cost. Businesses must also disclose the fee before the transaction, so customers know about it in advance.

Debit‑card surcharges, however, are prohibited nationwide under federal law. This ban applies to all debit cards, including prepaid and government benefit cards, even when a customer chooses the “credit” option at the register. Because this restriction comes from federal law, South Carolina businesses cannot add a fee to any debit‑card payment.

Cash payments cannot be charged an extra fee, but businesses may offer a cash discount. In practice, this means the posted price may reflect the credit‑card price, and customers who pay with cash may receive a lower amount at checkout. This approach is common among gas stations and small retailers looking to offset processing costs without adding surcharges.

South Carolina also does not allow a business to charge a fee simply for paying by check. The only permitted fee is for a returned check, which state law caps at thirty dollars. Outside of a bounced check, no additional fee can be added. Electronic bank transfers, often called ACH payments, fall outside card‑processing rules, so businesses may charge a small ACH fee if they choose to.

These rules apply specifically to South Carolina, but they are not the same everywhere. A few states still ban credit‑card surcharges entirely, while others allow them but impose caps or special disclosure requirements. Debit‑card surcharges remain prohibited nationwide. Because of these differences, businesses operating in multiple states must follow the rules in each location, and customers may notice different fee practices depending on where they shop.

For consumers, the bottom line is that credit‑card surcharges are allowed in South Carolina, debit‑card surcharges are not, cash discounts are permitted, and check fees are limited to bounced payments. Asking about accepted payment methods, and any related fees can help customers avoid surprises at checkout.

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