Can You Charge Credit Card Surcharges on Shopify POS? Here's How
Credit card processing fees are one of the biggest silent costs for retail merchants. Every swipe, tap, or dip costs you between 1.5% and 3.5% of the transaction — and for premium cards like Amex, it can be even higher.
If you’re a Shopify POS merchant, you’ve probably wondered: can I charge customers a surcharge to cover credit card processing fees?
The short answer: yes, in most cases you can. But there are rules, and you need to do it the right way. Let’s break it all down.
What Is a Credit Card Surcharge?
A credit card surcharge is an additional fee added to a transaction when a customer pays with a credit card. It’s designed to offset the processing costs the merchant pays to accept that card.
Surcharges are different from convenience fees. A surcharge is added specifically for credit card payments. A convenience fee is charged for using a non-standard payment channel (like paying a bill online instead of by mail).
Is It Legal to Surcharge Credit Cards?
In the United States, credit card surcharging has been legal since 2013 following a class-action settlement with Visa and Mastercard. However, there are important rules:
Where surcharging IS allowed:
- Most U.S. states
- Australia
- New Zealand
- United Kingdom
- Many other countries
Where surcharging is NOT allowed (as of 2025):
- Connecticut, Massachusetts, and Puerto Rico have restrictions
- Some states require specific disclosure practices
- Rules vary — always check your local regulations
Key compliance rules in the US:
- Disclosure — You must clearly inform customers about the surcharge before they pay
- Cap — Surcharges cannot exceed 3% of the transaction (or the actual processing cost, whichever is lower)
- Credit only — You can only surcharge credit cards, not debit cards
- Signage — You need to post signage at the point of entry and point of sale
- Receipts — The surcharge must appear as a separate line item on the receipt
The Problem: Shopify POS Doesn’t Have Built-In Surcharging
Shopify POS is a powerful point-of-sale system, but it doesn’t include a native surcharging feature. There’s no built-in option to say “add 2.5% when the customer pays with Amex.”
This leaves merchants with two choices:
- Absorb the fees — Accept the 2-3% hit on every transaction
- Use a surcharging app — Add the capability with a third-party solution
How to Add Surcharges on Shopify POS with Chargly
Chargly by Sasquatch Apps was built specifically to solve this problem. Here’s how it works:
Step 1: Install Chargly
Install Chargly from the Shopify App Store. Setup takes just a few minutes.
Step 2: Configure Your Fees
In the Chargly dashboard, create the surcharges you want to offer:
- Credit card surcharge — e.g., 2.5% for Visa/Mastercard
- Amex surcharge — e.g., 3.0% for American Express
- Afterpay/BNPL fee — e.g., a flat fee or percentage for Buy Now Pay Later
- PayPal fee — If you accept PayPal at POS
- Custom fees — Any other processing-related surcharge
You set the name, amount (fixed or percentage), and any other details.
Step 3: Staff Applies the Fee at Checkout
When a customer is ready to pay and indicates they’ll use a credit card:
- Staff taps the Chargly tile on the POS screen
- Selects the appropriate fee (e.g., “Amex Surcharge”)
- The fee is automatically added to the cart as a visible line item
- Customer sees the surcharge clearly before completing payment
It’s transparent, fast, and doesn’t disrupt the checkout flow.
How Much Can You Save?
Let’s do some quick math:
| Monthly Card Revenue | Avg. Processing Fee | Monthly Cost | Annual Cost |
|---|---|---|---|
| $10,000 | 2.5% | $250 | $3,000 |
| $25,000 | 2.5% | $625 | $7,500 |
| $50,000 | 2.5% | $1,250 | $15,000 |
| $100,000 | 2.5% | $2,500 | $30,000 |
Even recovering a portion of these fees makes a meaningful difference to your bottom line.
Best Practices for POS Surcharging
If you’re going to surcharge, do it right:
1. Be Transparent
Customers should never be surprised by a surcharge. Post signage, train your staff to mention it, and make sure it appears clearly on receipts.
2. Keep It Reasonable
Don’t surcharge more than your actual processing cost, and never exceed 3%. Overcharging damages trust and may violate regulations.
3. Offer Alternatives
Make sure customers know they can avoid the surcharge by paying with debit, cash, or other non-surcharged methods.
4. Train Your Staff
Your team should be comfortable explaining the surcharge. A simple script: “Just so you know, there’s a small processing fee for credit card payments. Would you like to proceed, or would you prefer to pay with debit or cash?“
5. Know Your Local Laws
Surcharging laws vary by state and country. Do your research or consult with a legal professional to ensure compliance.
Common Fee Types Merchants Collect with Chargly
Beyond standard credit card surcharges, merchants use Chargly for:
- Amex fees — Higher processing costs warrant a higher surcharge
- Afterpay and Klarna fees — BNPL services charge merchants 4-6%; many merchants pass this through
- PayPal fees — When accepting PayPal at point of sale
- Service fees — Setup, delivery, or administrative charges
- Custom processing fees — Any fee related to payment processing
Will Surcharging Drive Customers Away?
This is the big question merchants worry about. The data says: not really.
Studies show that most customers understand processing fees and accept small surcharges, especially when:
- The surcharge is clearly disclosed
- The amount is reasonable (under 3%)
- Alternative payment methods are available
- The overall shopping experience is positive
Many merchants report that the revenue recovered far outweighs any minor impact on customer sentiment.
Conclusion
Yes, you can charge credit card surcharges on Shopify POS — and you probably should be. Processing fees silently eat into your margins with every transaction, and tools like Chargly make it easy to recover those costs transparently and compliantly.
Install Chargly and start recovering your processing fees today.
Questions about surcharging compliance or setting up Chargly? Reach out to our team — we’re here to help.
