⚠️ Surcharging works with online ordering or the Owner POS. It isn't available for locations in Connecticut, Maine, Massachusetts, or Puerto Rico.
What gets surcharged
Only credit cards are surcharged. Owner detects the card type automatically, so you don't need to sort payments yourself.
These payments are never surcharged:
Debit and prepaid cards, even if the guest selects "credit" at the terminal
Apple Pay or Google Pay, when the card in the wallet is a debit card
Gift card payments
Cash
Online gift card purchases
Upcharges added to an existing order
In-store orders taken while your terminal is offline
ℹ️ Visa and Mastercard don't allow surcharges on debit or prepaid cards. This rule applies on every restaurant platform.
The surcharge rate
The rate is set automatically. It's the lowest of these three:
3%
Your state's limit (2% in Oklahoma)
Your actual processing cost
In practice, most orders are surcharged at 3%, or 2% in Oklahoma. The same rate applies to every card brand. The surcharge is a percentage of the order total before the surcharge is added.
Surcharging is either on or off. You can't choose your own rate, because the cap is a card network rule.
Sales tax on the surcharge
In most states, the surcharge is taxed like any other item on the order. In Colorado and Ohio, the surcharge isn't taxed.
State rules
Owner applies your state's rules automatically.
State | What applies |
Connecticut, Maine, Massachusetts, Puerto Rico | Surcharging isn't allowed by state law. It can't be turned on. |
Oklahoma | Capped at 2%. |
New York, Virginia | Guests see the total with the surcharge before they pay. |
All other states | Capped at 3%, or your processing cost if that's lower. |
What your guests see
Online, Owner handles every disclosure for you. In store, you need to post signs.
Online ordering
The surcharge percentage shows at checkout, before the guest enters payment details.
The order summary shows the surcharge as its own line, like Credit Card Surcharge (3%), with the dollar amount.
The order confirmation and receipt show both the percentage and the dollar amount.
If the guest pays with a debit card, including one in Apple Pay or Google Pay, the surcharge is removed and the final charge is lower.
In store (Owner POS)
Post a surcharge notice at your entrance and at the register. Visa offers sample signs you can use.
Surcharge disclosures also appear during POS checkout.
For phone orders, tell the guest about the surcharge before you take payment.
⚠️ In-store signs are required when you surcharge. Owner can't post them for you.
What you still pay
Surcharging offsets your processing costs. It doesn't remove them.
Online card processing costs 2.9% + $0.30 per transaction. The fee is charged on the full amount the guest pays, including the surcharge. So even with a 3% surcharge, you still pay about $0.30 on each credit card order.
Order | Surcharge (3%) | Processing fee | You pay |
$40 | $1.20 | $1.49 | $0.29 |
$100 | $3.00 | $3.29 | $0.29 |
$300 | $9.00 | $9.26 | $0.26 |
On debit and prepaid orders, there's no surcharge, so you pay the full processing fee. For example, on a $40 debit order, you pay $1.46. In Oklahoma, the 2% cap means you pay a little more. On a $40 credit card order, the surcharge is $0.80 and you pay $0.68.
In-store processing rates are different. You can see your in-store fees in your fees report.
✅ Want to know how surcharging affects your restaurant? Contact Owner support and we'll walk you through your numbers.
Turn surcharging on or off
Surcharging is set for each location. To turn it on or off, contact Owner support with your restaurant name and location.
Once it's on, there's nothing to set up for online ordering. Owner applies the rate, the disclosures, and debit card detection automatically.
If you turn surcharging off, you pay the full processing fee on every card order.
Another way to offset processing fees
You can also raise your menu prices slightly to cover processing fees. This works in every state, including states where surcharging isn't allowed, and it doesn't add a line item at checkout.
For example, a 3% to 4% increase turns a $12 item into $12.36 to $12.48. You can change prices in bulk with the Bulk Price Editor in the Menu section of your Owner Dashboard.
FAQ
Can I pass the full processing fee to my guests?
No. You can offset the fee with a surcharge on credit card orders, or by adjusting your menu prices.
Is a surcharge the same as a service fee?
No. A surcharge applies only when a guest pays with a credit card, and card networks regulate it. A service fee applies to every order, no matter how the guest pays. Any fee tied to card processing costs follows surcharge rules, whatever it's called.
Why did my guest see a surcharge, then a lower total?
Guests see the total with the surcharge first. If they pay with a debit card, the surcharge is removed, so the final charge is lower.
Can guests avoid the surcharge?
Yes. Guests who pay with a debit card, a gift card, or cash aren't surcharged.