Can a restaurant (or any merchant) anywhere in the United States, including Anne Arundel County, charge a surcharge or fee simply for using a debit card?

Within the past 2 weeks, I have run into a questionable practice, first at an Annapolis, MD restaurant (Mike’s Crabhouse) then at a Produce market (Mill Creek near Easton?) on Route 50 returning from the Beach. It seems to be the result of recent inflationary pressures on our economy that is happening nationwide. I reached out to Google’s Gemini service for help and received the following reply. Left unchecked, I see the making of a lot of abuse and confusion coming out of this at the National level and the need for a lot of education. The simplest solution is to carry cash to cover your expenses from an unexpected last minute surprise by the merchant. As of yet, you cannot be charged a fee for using cash.

My response From Gemini:

No, it is not legal for a restaurant (or any merchant) anywhere in the United States, including Anne Arundel County, to charge a surcharge or fee simply for using a debit card. 

While restaurants in Maryland are legally allowed to pass credit card processing fees on to customers (usually capped around 3% to 4% and requiring clear disclosure), federal law and major payment network rules strictly draw the line at debit transactions. 

Here is why that fee is illegal and how businesses sometimes try to work around it:

1. The Legal Defintion of a Debit Card

Under federal regulations (specifically the Durbin Amendment to the Dodd-Frank Act) and the strict merchant compliance rules set by Visa, Mastercard, and Discover, debit cards cannot be surcharged. This applies even if: 

 The card is processed as “credit” (meaning you signed for it instead of entering a PIN). 

The debit card features a Visa or Mastercard logo. 

The payment networks use Bank Identification Numbers (BINs) to instantly recognize that the card is tied to a checking account, making any added fee a direct violation of their network agreements.

2. Surcharges vs. Legal Alternatives

If a restaurant is looking to offset swipe fees legally, they cannot add a fee at checkout just for debit users. However, they are allowed to use a few alternative pricing models:

 Cash Discount Programs: The restaurant can list a standard price (which is the card price) and offer a discount if you pay with cash. 

 Dual Pricing: They can explicitly display two different prices on the menu for every item—a “Cash Price” and a “Card Price.”  

In both of these legal scenarios, the higher price must be the baseline displayed price, rather than a surprise fee tacked onto the end of a debit card transaction.

What to Do If You Were Charged

If an Anne Arundel County establishment added a specific “debit fee” or “processing fee” to your bill for using a debit card, they are out of compliance. You can: 

1 Point it out to management: Politely let them know that while credit card surcharges are permitted in Maryland, payment networks and federal rules strictly prohibit surcharging debit cards, even when run without a PIN. 

2 File a merchant violation report: You can report the business directly to the card networks (Visa or Mastercard) via their online compliance portals.

3 Contact the State: You can file a consumer complaint with the Maryland Attorney General’s Consumer Protection Division.