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Merchant services · Arizona

Merchant Services in Arizona

Arizona's merchants range from Phoenix and Tucson restaurants to Scottsdale salons and golf shops, Flagstaff outfitters, Sedona galleries, Yuma produce stands, and the trades and auto shops that keep a fast-growing state running. Winter visitors and tourists bring cards from every bank in the country, and many owners want to know whether they can add a card fee. Arizona doesn't have a statute about card surcharges, so the rules come from the Consumer Fraud Act, the card networks, and the way Arizona taxes gross receipts. Here's what we verified, what's still open, and the processing and ATM options we offer Arizona merchants.

General information, not legal advice. Check with an Arizona attorney or tax professional before you change how you price or add any fee.

Arizona's card fee rules

No surcharge-specific statute

We didn't find an Arizona statute that bans or caps credit card surcharges for private businesses, and the National Conference of State Legislatures' state table lists Arizona as having none. In the 2026 session, Senate Bill 1623 would have banned merchant surcharges on credit cards and capped card interest rates. The Legislature's bill record shows it was held in committee, so it isn't law.

The Consumer Fraud Act: A.R.S. § 44-1522

Arizona's Consumer Fraud Act makes it unlawful to use any deception, unfair act, false promise, or misrepresentation, or to conceal or omit a material fact with intent that others rely on it, in connection with the sale or advertisement of merchandise. It doesn't matter whether anyone was actually misled. The statute also tells courts to look to Federal Trade Commission interpretations as a guide. In practice, that means:

  • a card fee should be disclosed before the customer commits to pay, not discovered on the receipt;
  • a fee described as "cost recovery" shouldn't be more than your actual cost;
  • a "cash discount" should be a real discount off a price you actually post.

Transaction privilege tax

Arizona's transaction privilege tax (TPT) is a tax on the seller's gross receipts, and cities add their own rates. The Department of Revenue's retail guidance says gross receipts are everything you receive from the customer before deductions, and that there's no deduction for credit card fees because they're a cost of doing business. ADOR doesn't directly address a surcharge you collect from customers, but under that definition it likely counts as part of taxable gross receipts. Confirm with your tax professional before you program your POS.

Card-network rules

Under Visa's U.S. rules, a surcharge applies to credit cards only, never debit or prepaid cards, even if a debit card is run as "credit." It's capped at your merchant discount rate for that card or 3%, whichever is lower. You must notify your processor 30 days before you start and disclose the surcharge at the point of entry, the point of sale, and on the receipt. A pending Visa/Mastercard settlement, with a fairness hearing set for November 16, 2026, may change some network rules if it's approved.

Surcharging vs. dual pricing

  • Surcharging adds a percentage at checkout when a customer pays by credit card. It can't touch debit cards, so your terminal has to tell the difference.
  • Dual pricing posts a cash price and a card price everywhere prices appear, on shelf tags, menus, quotes, and invoices. The customer sees both before choosing.

Either can work in Arizona when it's set up openly. A fee that shows up only on the receipt is the problem under § 44-1522.

What Arizona businesses ask about

  • Restaurants and bars in the Valley and Tucson want menu wording that shows both prices, and tip screens that calculate on the right base.
  • Seasonal and tourist businesses in Scottsdale, Sedona, and the Grand Canyon corridor see heavy rewards-card use from November through April, which changes whether interchange-plus or a flat rate fits better.
  • Contractors, HVAC, and pool services want card and ACH on the same invoice, plus a virtual terminal for phone payments.
  • Farm stands and swap-meet vendors need mobile and Bluetooth readers that work away from the counter.
  • Medical, dental, and vet offices ask how dual pricing looks on a treatment estimate.

Your options, side by side

  1. Dual pricing (optional). Two posted prices, built around the disclosure points above.
  2. Interchange-plus. You pay the network cost plus a disclosed fixed markup.
  3. Flat-rate. One rate per transaction, easy to plan around.
  4. Square, if you prefer it. We'll include it in your comparison.

Through our processing partners we offer countertop terminals, POS systems, mobile and Bluetooth readers, and virtual terminals. Results depend on your volume, card mix, and current contract, so we don't promise savings before reviewing a statement.

ATMs in Arizona

Cash still changes hands at swap meets, rodeos, bars, RV parks, and tourist stops along the interstates. If you want your own ATM:

  • You buy and own the machine. It's a purchase, not a loan.
  • You load and run it, including how much cash goes in and when.
  • Terms are subject to the partner agreement, and every term is disclosed in writing before you sign.
  • We don't promise monitoring, maintenance, or a revenue share. ATM surcharge income isn't guaranteed.
  • Machines come through our ATM partner, and card processing comes through our processing partners.

FAQ

Are credit card surcharges legal in Arizona?

We didn't find an Arizona statute that bans or caps them, and the 2026 bill that would have banned them was held in committee. Card-network limits apply, and the Consumer Fraud Act still governs how you disclose the fee.

Can I surcharge debit cards in Arizona?

No. Card-network rules don't allow surcharges on debit or prepaid cards, even when the customer chooses "credit" at the terminal. Dual pricing is the usual alternative.

Is a card surcharge subject to transaction privilege tax?

Probably. ADOR says gross receipts include everything you receive from the customer and that card fees aren't deductible, but it doesn't address surcharges directly. Ask your tax professional.

Can I offer a cash discount in Arizona?

Yes. Post the real card price and the real cash price so customers see both before they pay.

Do you work with Arizona businesses?

Yes. We're based in Clifton, Tennessee, and serve merchants nationwide by phone and email.

Who owns an ATM I get through you?

You do. You purchase it outright and run it yourself, and the terms, which are subject to the partner agreement, are disclosed in writing first.

Get a no-obligation comparison

Send a recent statement and tell us how your customers usually pay. We'll compare a cash discount, interchange-plus, flat-rate, and your current setup for your Arizona business.