Is a cash discount legal in Massachusetts?
Short answer: Massachusetts bans credit card surcharges. A cash discount with both prices posted before payment is not a surcharge under Visa’s rules, and federal law protects discounts for cash.
Massachusetts at a glance.
Surcharges banned
- Surcharges
- 'No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card.' Bill S.2819 (cost cap instead of ban) was last in Senate Rules on 7 Jan 2026; no enactment found. Since 2 Sept 2025 the Attorney General's fee rules (940 CMR 38.00) require total-price disclosure.
- Cap
- Not applicable.
- Debit cards
- Statute addresses credit cards. Network rules bar debit surcharges.
- Cash discount with both prices
- Cash discounts allowed if offered to all buyers and clearly and conspicuously disclosed (28A(b)).
- Law
- M.G.L. c. 140D, 28A; 940 CMR 38.00
Verified on primary source (Massachusetts Legislature statute and bill history).
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 Massachusetts: 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 Massachusetts charge a fee for using a credit card?
Massachusetts’s law bans credit card surcharges. 'No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card.' Bill S.2819 (cost cap instead of ban) was last in Senate Rules on 7 Jan 2026; no enactment found. Since 2 Sept 2025 the Attorney General's fee rules (940 CMR 38.00) require total-price disclosure.
Can I charge more for debit cards in Massachusetts?
Not as a fee. Statute addresses credit cards. Network rules bar debit surcharges. With a cash discount, debit pays the posted card price.
Is a cash discount legal in Massachusetts?
Cash discounts allowed if offered to all buyers and clearly and conspicuously disclosed (28A(b)). 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.