Is a cash discount legal in Maryland?
Short answer: Maryland has no specific law on credit card surcharges, so card network rules apply: Visa caps surcharges at 3% or your cost and bans them on debit. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash.
Maryland at a glance.
No state surcharge law
- Surcharges
- No surcharge statute. Commercial Law 12-509 lets a seller offer a cash discount despite any card-issuer agreement. NFIB's statement of a 4% state cap is not in 12-509.
- Cap
- No state cap. Card-network rules apply: Visa lesser of 3% or the merchant's discount rate; Mastercard lesser of cost or 4% (secondary).
- Debit cards
- No state rule. Visa and Mastercard bar surcharges on debit and prepaid cards.
- Cash discount with both prices
- Cash discounts protected by statute (Md. Com. Law 12-509).
- Law
- Md. Code, Com. Law 12-509 (cash discount only)
Cash discount statute verified on primary source; absence of a surcharge law is secondary.
What to post on your tags.
- Show the cash price and the card price on every tag, menu or price list, the same size.
- Charge the posted price for how the customer pays. Don’t add a fee, “service charge” or “non-cash adjustment” at the register.
- Put a sign at the door and the counter explaining the two prices.
- Debit pays the posted card price. Never add a fee to debit.
Paymantis sets up cash discount processing for independent shops in Maryland: free sign-up, free monthly service and a free terminal, with tags and signs worded for your state. Get started free.
Questions owners ask.
Can a business in Maryland charge a fee for using a credit card?
There’s no specific state law, so card network rules apply: surcharges are capped at 3% or your cost (Visa), must be disclosed, and need notice to your processor first.
Can I charge more for debit cards in Maryland?
Not as a fee. No state rule. Visa and Mastercard bar surcharges on debit and prepaid cards. With a cash discount, debit pays the posted card price.
Is a cash discount legal in Maryland?
Cash discounts protected by statute (Md. Com. Law 12-509). Post both prices before the customer pays and add nothing at the register.
Sources
General information, not legal advice. Rules change and differ by state and city; check the rules where your business is. See our terms and disclaimers.