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Merchant services · Massachusetts

Merchant Services in Massachusetts

Massachusetts merchants include Boston and Cambridge restaurants, Worcester and Springfield auto shops, Cape Cod and Islands seasonal businesses, Berkshires inns and galleries, North Shore fish markets, and Pioneer Valley farm stands. Nearly all of them take cards, and many owners have seen card fees elsewhere and wonder whether they can add one. In Massachusetts the answer is different from most states: state law bans credit card surcharges, but it expressly allows a cash discount that's offered to everyone and clearly disclosed. Since September 2025, the Attorney General's junk-fee regulations also govern how prices are shown. Here's what we verified and the processing and ATM options we offer Massachusetts merchants.

General information, not legal advice. Check with a Massachusetts attorney before you change how you price or add any fee.

Massachusetts card fee rules

The surcharge ban: M.G.L. c. 140D, § 28A

Section 28A(a)(2) says no seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card instead of paying by cash, check, or similar means. We checked the current text on the Legislature's site, and the ban is still in force. Because of it, we don't offer or set up credit card surcharging for Massachusetts merchants.

Cash discounts are allowed

The same section protects the other direction:

  • § 28A(a)(1): a card issuer can't stop a seller from offering a discount to customers who pay by cash, check, or similar means.
  • § 28A(b): a discount from the regular price for paying another way isn't a finance charge if it's offered to all prospective buyers and its availability is disclosed clearly and conspicuously.

Why the definitions matter

Chapter 140D, § 1 defines a surcharge as any means of increasing the regular price to a cardholder that isn't imposed on customers paying by cash or check. It defines the regular price as the posted price, or, when two prices are posted (one for cards and one for cash), the card price. So a compliant Massachusetts program posts the card price as the regular price and offers a lower cash price. A "cash discount" program that actually adds a fee at the card terminal on top of the posted price is a surcharge under these definitions, whatever it's called.

The 2025 junk-fee regulations: 940 CMR 38.00

The Attorney General's "Unfair and Deceptive Fees" regulations took effect September 2, 2025, under the Consumer Protection Act (c. 93A). They require the total price, including mandatory fees, to be shown clearly and conspicuously, with government charges and shipping excluded. The AG's guidance says fees consumers can't reasonably avoid, such as credit card processing fees when there's no other viable payment option, must be included in the total price. The rules apply to online and out-of-state businesses selling to Massachusetts consumers, too.

A pending bill, not law

Senate Bill 2819 (2025–2026) would replace § 28A's ban with a cap at the seller's actual cost, plus posted and receipt disclosures. As of the Legislature's latest record, it was reported favorably on January 7, 2026 and referred to the Senate Committee on Rules. It hasn't passed, so the ban still applies.

Card-network rules

Visa allows surcharges only where state law permits them, and its own guidance lists Massachusetts as a state that prohibits them. Network rules also never allow surcharges on debit or prepaid cards. For cash discounts, Visa describes posting either the card price alone or the card and cash prices side by side.

What Massachusetts businesses ask about

  • Restaurants and bars ask how to show a cash price on menus without running into the junk-fee rules on service charges.
  • Cape and Islands seasonal shops see a summer surge in out-of-state rewards cards, which changes whether interchange-plus or flat-rate fits better.
  • Contractors and home-service businesses want card and ACH on the same invoice and a virtual terminal for phone payments.
  • Farm stands and markets need mobile readers that work at the field edge or the farmers' market.
  • Card-only businesses should be careful: with no cash option, a "discount" can't exist, and the full price must be shown up front.

Your options, side by side

  1. Cash discount (optional). Post the card price as the regular price and a lower cash price, offered to everyone and clearly disclosed.
  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 Massachusetts

Cash still moves at bars, fairs, flea markets, marinas, and summer beach towns. 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

Can I add a credit card surcharge in Massachusetts?

No. M.G.L. c. 140D, § 28A(a)(2) prohibits sellers from imposing a surcharge on customers who pay by credit card, and we don't set up surcharging for Massachusetts merchants.

Can I offer a cash discount in Massachusetts?

Yes. A discount for paying by cash, check, or similar means is allowed if it's offered to all buyers and clearly and conspicuously disclosed. Post the card price as your regular price.

Is dual pricing the same as a surcharge?

Not if it's done correctly. When two prices are posted, Massachusetts treats the card price as the regular price, so a lower cash price is a discount. Adding a fee at the card terminal is a surcharge.

Do the junk-fee rules affect card pricing?

Yes. Since September 2, 2025, the total price must include mandatory fees. The AG says a card processing fee counts when customers have no other viable way to pay.

Is Massachusetts changing its surcharge ban?

A bill to allow cost-capped surcharges (S.2819) was referred to Senate Rules in January 2026 but hasn't passed. We'll update this page if the law changes.

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 pay. We'll compare a compliant cash discount, interchange-plus, flat-rate, and your current setup for your Massachusetts business.