Are you overpaying? 9 ways to minimize credit card surcharges

You may have noticed a growing trend at checkout: credit card surcharges. These small add-on fees might not seem like much, but they can quickly chip away at the value of your rewards — and your wallet.

Often called convenience or service fees, surcharges help businesses offset rising processing and interchange costs. But knowing when they apply (and how to avoid them) can make the difference between earning great rewards and losing out.

Here are nine smart and simple ways to sidestep surcharges and maximize the value of every transaction.

Related: Should I pay with a rewards credit card even if it incurs fees?

Compare the surcharge to your expected rewards value

A surcharge doesn’t automatically mean paying with a credit card is a bad deal, but you should compare the fee to what you’re earning. Before paying, check whether the fee outweighs the rewards you’ll earn. Surcharges typically range from 1.5% to 4%, so a card earning only one to two points per dollar spent may not offset the added cost.

Luckily, you can use TPG’s monthly valuations page to calculate whether the points or cash back you earn outweigh the surcharge. For example, a 3% fee on a $50 restaurant tab costs $1.50. If your card earns points worth more than that, it may still be worth using your credit card — especially if you’re earning transferable points, which can offer outsize value compared with simple cash-back rewards.

For example, if you have the Chase Sapphire Preferred® Card (see rates and fees), you earn 3 points per dollar spent on dining. On a $50 dinner bill, you might pay a 3% surcharge (an extra $1.50), but you’d earn 150 Chase Ultimate Rewards points. Because those points can be transferred to Chase’s airline and hotel partners — often at higher redemption values — the rewards earned can easily exceed the cost of the surcharge.

Plus, TPG values Chase points at 2.05 cents apiece, per our December 2025 valuations. Therefore, 150 Chase points are worth about $3, thus exceeding the initial surcharge.

Overall, comparing the surcharge with the value of your rewards can help you determine the best way to pay.

Related: Why all travelers should earn transferable credit card points

Switch to a card that earns more in surcharge-prone categories

If you frequently shop at businesses that apply surcharge fees — such as restaurants, grocery stores or small businesses — consider carrying a card that earns higher rewards in those categories. Over time, elevated earn rates can help offset the cost of processing fees and preserve your net rewards value.

For instance, the American Express® Gold Card earns 4 points per dollar spent on restaurants worldwide (on up to $50,000 in purchases per calendar year, then 1 point per dollar spent for the rest of the year) and 4 points per dollar at U.S. supermarkets (on up to $25,000 in purchases per calendar year, then 1 points per dollar spent for the rest of the year).

With the Amex Gold, you could earn 200 American Express Membership Rewards points on a $50 U.S. supermarket bill, which would be more than enough to cover a 3% surcharge. And those points can become even more valuable if you transfer them to Amex’s airline and hotel partners, and you redeem them for flights or hotel stays.

By strategically using the right card in surcharge-prone categories, you can continue to earn high-value points while minimizing the impact of processing fees, surcharges and other extra costs.

Related: The best rewards credit cards to maximize everyday spending

Use mobile wallets when they’re exempt from fees

In some cases, merchants apply surcharges only to physical card transactions but not to mobile wallets like Apple Pay or Google Pay. This depends on their agreements with payment processors or card brands, so it’s always worth asking.

If you see a sign about surcharge fees, ask whether mobile payments count as a different payment method. You may be able to avoid the fee entirely.

Related: What to know about your rewards if you pay by mobile wallet

Look for “card-not-present” fee differences

Sometimes, the fee changes depending on whether the transaction is card-present or card-not-present (like online or over the phone). For example, a merchant might impose a lower percentage-based fee or waive the fee for online payments.

If you’re being charged extra in person, consider whether paying through the merchant’s website results in a lower additional fee.

Related: How to maximize online shopping portals for your purchases

Ask whether there’s a cash or debit discount

Before you pay, ask if the price is lower for cash or debit card transactions. Some businesses offer discounts for customers who pay with cash or debit as a way to encourage alternative payment methods and reduce costs.

Many small businesses prefer these alternative payment methods because they reduce the business’ own costs, especially when it comes to fees charged by credit card processors. The businesses will often pass along those savings even if the discount isn’t posted.

Since most debit card payments don’t incur the same processing fees as credit cards, this can be one of the simplest ways to avoid a surcharge entirely.

However, just remember that paying with cash or debit cards may limit your ability to earn rewards or receive card-based protections such as purchase coverage, extended warranty or built-in travel benefits.

Related: 4 reasons why you shouldn’t use your debit card

Know your state’s surcharge laws

Surcharge laws vary widely by state. A handful of states restrict when businesses can add surcharges, while others require specific disclosure requirements, including clear signage and transparent pricing.

Even in states where credit card surcharges are legal, merchants must disclose the total surcharge amount before you pay. If you weren’t notified or the posted price doesn’t match the final total, you’re within your rights to ask the merchant to honor the original price.

Related: Credit card economics: A look at the fees that you rarely see

Use a no-fee payment method for small purchases

On small transactions, a surcharge can be disproportionately expensive. A 3% fee on a $6 coffee isn’t much in dollars, but relative to the transaction value, it adds up over time.

When the surcharge outweighs the rewards — which is common for low-cost everyday items — paying with cash, a debit card or another alternative payment method can make more sense.

Related: Maximize your rewards: Your points and miles checklist

Avoid businesses that add unnecessary or excessive fees

Some merchants add extra fees that go beyond typical surcharges, and others skirt the rules by not disclosing them properly. Hidden fees (undisclosed or nontransparent charges) can increase your total cost and are a sign of noncompliant or unfair business practices.

If a business consistently charges more than the posted price or applies undisclosed additional fees, consider taking your business elsewhere.

Not only does doing this save you money, but it also encourages transparent pricing and discourage merchants from adding improper fees.

Related: How to avoid ATM fees

How credit card surcharges work, and why they’re becoming more common

A credit card surcharge is an extra fee added to a purchase when you pay with a credit card. Typically 1.5% to 4% of the total, these fees are designed to help merchants cover the costs of accepting credit card payments, including fees charged by credit card issuers, networks and payment processors.

While surcharges have been around for years, they’re becoming more common for several reasons. For one, processing and interchange fees have increased, especially for small businesses operating on thin margins.

At the same time, modern point-of-sale systems have made it easier for merchants to automatically add and disclose surcharges.

There is also ongoing legal scrutiny of swipe fees: Visa and Mastercard have agreed to a proposed settlement with U.S. merchants that could lower certain processing costs. However, the deal is still awaiting court approval, and any changes may take time to reach consumers.

As operating costs continue to rise, more merchants are opting to pass along some of these expenses to customers who pay with credit cards.

Surcharges are most common at small businesses, restaurants and service providers, but they can appear anywhere merchants want to offset costs. Regardless of where you shop, merchants must follow card network rules, state laws and disclosure requirements to ensure any surcharge is legal and transparent.

Related: How to avoid paying fuel surcharges when redeeming points and miles

Bottom line

Credit card surcharges are becoming a routine part of the payments landscape, but that doesn’t mean you need to simply accept them. By comparing the cost to your expected rewards, choosing the right payment method, watching for discounts and understanding state laws, you can minimize what you pay and preserve the value of every swipe.

With a few quick checks before each purchase, you can continue using your rewards cards strategically — and avoid paying more than necessary.