California credit card surcharge law

Contested — California’s surcharge ban is largely unenforceable for many merchants, but SB 478 and posting rules still matter.

Rule: Civ. Code §1748.1 still prohibits surcharges in text, but Italian Colors Restaurant v. Becerra (9th Cir. 2018) held the ban unenforceable as applied; the AG applies that reasoning to similarly situated merchants. SB 478 (eff. 1 Jul 2024) treats many card fees as avoidable surcharges outside the advertised price, but card-only businesses must include fees in the posted price.

Disclosure: Post the total credit-card price in dollars and cents where required; follow OAG hidden-fees guidance for dual pricing.

What this means for a $100 sale: On a $100 credit-card sale at a typical 2.9% + $0.30 rate, the ban is contested; if it doesn't apply to you, network rules would cap this at about $3.00 (customer pays about $103.00).

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This page is for general information only and is not legal advice. Rules change—verify with primary sources and professional counsel before surcharging.