You may have noticed a growing trend at checkout: credit card surcharges. These small additional fees may not seem like much, but they can quickly erode the value of your rewards and wallet.
Surcharges, often called convenience fees or service fees, help businesses offset rising processing and switching costs. But knowing when they apply (and how to avoid them) can determine whether you’ll reap big rewards.
Here are nine smart and easy ways to avoid surcharges and maximize the value of every transaction.
Related: Should I pay with a rewards credit card even if there are fees?
Compare the surcharge to your expected reward value
The surcharge doesn’t mean paying with a credit card is a bad deal, but you should compare the fee to your income. Before paying, check whether the fees exceed the rewards you will receive. Surcharges typically range from 1.5% to 4%, so a card that only earns 1 to 2 points per dollar spent may not be able to offset the increased cost.
Luckily, you can use TPG’s monthly valuation page to calculate whether the points or cash back you earn exceeds the surcharge. For example, a 3% charge on a $50 restaurant bill is $1.50. If your card earns points worth more than this, your credit card may still be worth using – especially if you earn transferable points, which can provide outsized value compared to simple cash back rewards.
For example, if you have Chase Sapphire Preferred® Card (See Rates & Fees) Earn 3 points for every $1 spent on food and beverages. On a $50 dinner bill, you may pay a 3% surcharge (an additional $1.50), but you’ll earn 150 Chase Ultimate Rewards points. Since these points can be transferred to Chase’s airline and hotel partners (often at higher redemption values), the rewards earned easily outweigh the surcharge.
Additionally, TPG values Chase Points at 2.05 cents per share based on our December 2025 valuation. Therefore, 150 Chase points are worth about $3 above the initial surcharge.
Overall, comparing the surcharge to the reward value can help you determine the best way to pay.
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Related: Why All Travelers Should Earn Transferable Credit Card Points
Switch to cards that earn more money in categories that are prone to surcharges
If you frequently shop at businesses that charge surcharges, such as restaurants, grocery stores, or small businesses, consider carrying a card with higher rewards in those categories. Over time, increased earning rates can help offset the cost of fees and preserve your net reward value.
For example, American Express® Gold Card Earn 4 points per $1 spent at restaurants worldwide (up to $50,000 in purchases per calendar year, then 1 point per $1 spent the remainder of the year), and 4 points per $1 spent at U.S. supermarkets (up to $25,000 in purchases per calendar year, then 1 point per $1 spent throughout the remainder of the year).
along with American Express Gold Cardyou can earn 200 American Express Membership Rewards points on a $50 U.S. supermarket bill, which is enough to cover the 3% surcharge. These points can become even more valuable if you transfer them to American Express’s airline and hotel partners and redeem them for flights or hotel stays.
By strategically using the right cards in surcharge-prone categories, you can continue to earn high-value points while minimizing the impact of fees, surcharges, and other additional costs.
Related: The Best Rewards Credit Cards to Maximize Everyday Spending
Use mobile wallet when fees are waived
In some cases, merchants only charge surcharges on physical card transactions and not on mobile wallets like Apple Pay or Google Pay. This depends on their agreement with the payment processor or card brand, so it’s always worth asking.
If you see a sign about a surcharge, ask if mobile payments count as another payment method. You may be able to avoid this fee entirely.
Related: How to know your rewards if you pay via mobile wallet
Look for “no card” fee differences
Sometimes the fees vary depending on whether the transaction is card present or card not present (such as online or over the phone). For example, a merchant might charge a lower percentage fee or waive fees for online payments.
If you are charged a premium in person, consider whether paying through the merchant’s website will reduce the premium.
Related: How to Make the Most of Your Online Shopping Portal Purchases
Ask if there are cash or debit discounts
Before paying, ask if the price is lower for a cash or debit card transaction. Some businesses offer discounts to customers who pay with cash or debit card to encourage alternative payment methods and reduce costs.
Many small businesses prefer these alternative payment methods because they can reduce costs for the business itself, especially the fees charged by credit card processors. Even if a discount isn’t posted, businesses often pass these savings on to others.
Since most debit card payments don’t incur the same fees as credit cards, this may be one of the easiest ways to avoid surcharges entirely.
However, keep in mind that paying with cash or debit card may limit your ability to earn rewards or access card-based protections such as purchasing insurance, extended warranties, or built-in travel benefits.
Related: 4 Reasons Why You Shouldn’t Use a Debit Card
Know your state’s surcharge laws
Surcharge laws vary widely from state to state. A handful of states limit 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 before payment is made. If you do not receive notification or the posted price does not match the final total price, you have the right to require the merchant to honor the original price.
RELATED: Credit Card Economics: Look at the Fees You Rarely See
Use free payment methods for small purchases
For small transactions, surcharges can be very expensive. A 3% fee on a $6 coffee isn’t much in dollar terms, but relative to the transaction value, it adds up over time.
When the surcharge exceeds the reward (which is common with low-cost everyday items), it may make more sense to pay with cash, debit card, or other alternative payment methods.
Related: Maximizing Your Rewards: Your Points and Miles Checklist
Avoid businesses that add unnecessary or excessive expenses
Some merchants charge additional fees beyond typical surcharges, while others circumvent the rules by improperly disclosing these fees. Hidden fees (undisclosed or opaque charges) can increase your total costs and are a sign of noncompliance or unfair business practices.
If a business consistently charges more than the published price or charges undisclosed additional fees, consider taking your business elsewhere.
Not only does this save money, it also encourages transparent pricing and discourages merchants from adding inappropriate fees.
Related: How to avoid ATM fees
How credit card surcharges work and why they are becoming more common
A credit card surcharge is an additional fee added to a purchase when paying with a credit card. These fees, which typically range from 1.5% to 4% of the total, 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 many years, they are becoming more common for a number of reasons. First, processing fees and interchange fees increase, especially for small businesses with slim profits.
At the same time, modern point-of-sale systems make it easier for merchants to automatically add and disclose surcharges.
A legal review of swipe fees is also underway: Visa and Mastercard have agreed to a proposed settlement with U.S. merchants that could reduce some processing costs. However, the deal is still awaiting court approval and any changes may take some time to be communicated to consumers.
As operating costs continue to rise, more and more merchants are choosing to pass on some of the fees to customers who pay with credit cards.
Surcharges are most common among small businesses, restaurants and service providers, but can appear anywhere a merchant wants to offset costs. No matter where you shop, merchants must comply with card network rules, state laws and disclosure requirements to ensure any surcharges are legal and transparent.
Related: How to avoid paying fuel surcharges when redeeming points and miles
bottom line
Credit card surcharges are becoming a regular 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, paying attention to discounts, and understanding state laws, you can minimize payment fees and preserve the value of every swipe.
By doing a few quick checks before every purchase, you can continue to use your rewards cards strategically and avoid paying unnecessary fees.
