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Merchant services · Michigan

Merchant Services in Michigan

Michigan businesses include Detroit coney islands and auto shops, Grand Rapids breweries, Traverse City wineries and cherry stands, Mackinac and Up North tourist shops that live on the summer season, and Upper Peninsula bait-and-tackle stores. Most take cards, and plenty of owners wonder whether they can pass the fee along. Michigan has no statute that restricts card surcharges, but the Attorney General's office has published consumer guidance on how surcharges should be disclosed, and the state's consumer protection act still applies. Here's what we verified, and the processing and ATM options we offer Michigan merchants.

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

Michigan's surcharge rules

What the Attorney General's office says

The Michigan Department of Attorney General's consumer alert on credit and debit card surcharges says retailers may, but aren't required to, charge for processing a credit card transaction. It says plainly that Michigan doesn't have a law that prohibits or restricts credit card surcharges, and doesn't have one on debit card surcharges either. How much a merchant can charge depends on the card companies' rules.

The same alert lists the disclosures it expects from a business that surcharges:

  • a notice at the store entrance and at the point of sale saying a surcharge applies to purchases made with identified credit cards;
  • the exact amount of the surcharge itemized on the sales receipt;
  • for online sellers, a disclosure on the web page where credit cards are first mentioned.

It also notes that merchants can, and do, offer discounts for paying cash.

The Michigan Consumer Protection Act

MCL 445.903 lists practices that are unlawful in trade or commerce. Two matter most for card pricing: making false or misleading statements about the reasons for, existence of, or amounts of price reductions, and failing to reveal a material fact when leaving it out tends to mislead the customer. A "cash discount" off a price nobody posted, or a card fee nobody mentioned until the receipt, runs into both.

Gas stations

The Attorney General's alert also points out a special rule: since July 2017, a gas station whose advertised fuel price comes with conditions, such as paying cash, has to post those conditions on the road sign next to the price, with equal lighting and lettering at least half the size of the price.

Card-network rules

The Attorney General's alert summarizes the network caps: Visa limits surcharges to 3% and Mastercard to 4%, or the merchant's actual cost of acceptance if that's lower. Visa's own U.S. rules add that a surcharge applies to credit cards only, never debit or prepaid cards, even when a debit card is run as "credit"; that you must notify your processor 30 days before you start; and that the surcharge has to be disclosed at the point of entry, the point of sale, and on the receipt. Visa describes a proper cash discount as posting either the card price alone or the card and cash prices side by side. 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 fee at checkout on credit cards only, within the network caps.
  • Dual pricing (often called cash discounting) shows a cash price and a card price everywhere prices appear, so customers see both before paying.

Michigan allows either when it's done openly. Debit cards are where people trip up: a surcharge can't apply to them, but a posted cash price can still be lower than the card price.

What Michigan businesses ask about

  • Restaurants, coney islands, and bars want menu wording that shows both prices and tips that calculate correctly.
  • Seasonal shops and marinas Up North and on the lakeshores do most of their volume in a few months, which changes whether flat-rate or interchange-plus makes more sense.
  • Auto repair and body shops around Metro Detroit take large tickets and often want card and ACH on the same invoice.
  • Wineries, orchards, and farm markets need countertop and mobile readers for tasting rooms and roadside stands.
  • Gas stations and convenience stores need fuel signs that match the conditions rule above.

Your options, side by side

  1. Dual pricing (optional). Post a cash price and a card price, with signs and receipts set up to match.
  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 Michigan

Cash still matters at bars, bowling alleys, bait shops, and county fairs. 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 Michigan?

Michigan's Attorney General says the state has no law that prohibits or restricts them, so card-network caps apply. The AG expects notice at the entrance and point of sale and the exact amount on the receipt.

Can I surcharge debit cards in Michigan?

No. Michigan doesn't have its own debit rule, but card-network rules don't allow surcharges on debit or prepaid cards.

Can I offer a cash discount in Michigan?

Yes. The Attorney General's alert notes that merchants can offer cash discounts. Make sure the discount is real and the prices are posted.

How do I disclose a surcharge online?

The Attorney General's alert says to disclose it on the page where credit cards are first mentioned, before the customer reaches checkout.

Do you work with Michigan 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 Michigan business.