Florida Merchant Laws 2025: The Local Compliance Playbook

Key Takeaways for Florida Merchants:

• The Legal Gray Area: Florida Statute 501.0117 technically bans surcharges, but a 2015 Federal Court ruling (Dana's Railroad Supply v. Attorney General) declared it unconstitutional. This means surcharging is effectively allowed but regulated.

• Disclosure is Mandatory: You must clearly disclose fees before the transaction. Hidden fees can still trigger "Unfair and Deceptive Trade Practices" lawsuits.

• The 3% Rule: Regardless of state law, Visa/Mastercard rules cap surcharges at 3% in Florida.

• Dual Pricing Preference: Because of the legal ambiguity, many Florida businesses prefer Dual Pricing (Cash vs. Card price) as it is explicitly protected as a "discount" under the statute.

If you own a business in Fort Myers, Naples, or anywhere in the Sunshine State, you’ve likely seen the signs at checkout: "3.5% Non-Cash Adjustment" or "Cash Discount Available."

But if you look up Florida law, you might find Statute 501.0117, which says surcharging is a second-degree misdemeanor.

So, what is the truth? Can you charge a fee or not?

As a locally focused merchant services provider with a strong presence in Fort Myers, Circle Processing is here to clear up the confusion for 2025.

The Conflict: State Statute vs. Federal Court

Here is the situation in plain English:

1. The Old Law: Florida Statute 501.0117 was passed years ago to stop merchants from charging extra for credit cards.

2. The Ruling: In 2015, the 11th U.S. Circuit Court of Appeals ruled that this law violated the First Amendment. The court said that calling a price difference a "surcharge" vs. a "discount" is just speech. Therefore, the state cannot ban you from communicating the cost of credit to your customers.

The Verdict for 2025: While the statute remains on the books, it is legally unenforceable regarding the ban on surcharges. The Florida Attorney General generally does not enforce it against merchants who properly disclose the fee.

Requirements for Compliance in Florida

Just because you can surcharge doesn't mean you can do it however you want. To stay safe from consumer complaints and card brand fines, you must follow these rules:

1. The "Point of Entry" Rule

You cannot surprise the customer. You must have signage at the entrance of your store (or on your website's checkout page) stating that a fee applies to credit card transactions.

2. The Cap (3% vs. 4%)

While older programs charged 4%, Visa lowered the cap to 3% (or your actual cost of processing). If you are charging 3.99% or 4% in Florida, you are likely violating Visa rules, even if state law doesn't explicitly stop you.

3. No Surcharging Debit

This is the big one. You cannot apply a surcharge to a debit card, even if the customer runs it as "credit."

• Risk: If you use a cheap "non-compliant" terminal that adds a fee to everything, you are breaking federal law (Durbin Amendment).

• Solution: Use Circle Processing’s smart Clover technology that auto-detects debit cards and waives the fee.

Why Dual Pricing is the "Florida Favorite"

Given the complex history of Statute 501.0117, many Florida merchants prefer Dual Pricing over Surcharging.

Why? Because the Florida statute explicitly states: "This section does not apply to the offering of a discount for the purpose of inducing payment by cash."

By displaying a "Cash Price" and a "Card Price," you squarely fit into the "Discount" exception. It is the legally safest way to eliminate fees in Florida.

Local Focus: Serving Fort Myers and Lee County

At Circle Processing, we know the local landscape. Whether you are a seasonal restaurant on Fort Myers Beach or a contractor in Cape Coral, we ensure your payment setup is compliant with both Tallahassee regulations and Visa global rules.

Don't guess with your compliance. Upgrade to a system that handles the legal details for you.

FAQ: Florida Surcharge Laws

Q: Is the 4% surcharge illegal in Florida? A: While Florida law doesn't set a specific % cap, Visa and Mastercard rules cap it at 3%. If you charge 4%, you risk having your ability to accept Visa revoked.

Q: Can I surcharge in a restaurant? A: Yes, but be careful with tips. You generally cannot apply the surcharge to the tip amount, only the pre-tax subtotal. Our Clover systems handle this calculation automatically.

Q: Where can I find the official rules? A: You can review the Florida Attorney General’s advisory on credit card surcharges or consult Circle Processing for a free compliance audit of your current statement.