General Discussion

Dodd-Frank Act (specifically the Durbin Amendment) ban on surcharges for debit card transactions remains in effect. Federal law prohibits merchants from adding a surcharge when customers use a debit card, even if processed as "credit".

However, a recent August 2025 court ruling did vacate the Fed’s specific limit on swipe fees (Regulation II), though this does not authorize surcharges.

Key details regarding this regulation:

What is Allowed: Merchants are generally allowed to apply a surcharge on credit card transactions (subject to state laws and proper disclosure), but never on debit or prepaid cards.

Recent Legal Shifts (2025): While a federal judge ruled in August 2025 that the Federal Reserve's cap on the fee amount (swipe fees) was illegal, this ruling is currently being appealed and did not overturn the ban on charging consumers a fee for using a debit card.