On May 28, Oklahoma enacted SB 677, which became law without the signature of Oklahoma Governor Kevin Stitt. This new law repeals Oklahoma Statute Title 14A, Section 2-417, which previously barred sellers from imposing a surcharge on a cardholder who elected to make a payment via credit card or debit card in lieu of cash, check, or other similar means, and modifies Oklahoma Statute Title 14A, Section 2-211 as further discussed below.
Oklahoma's Attorney General previously issued an opinion on December 17, 2019, that concluded that the law would be declared unconstitutional if challenged following the 2017 decision by the U.S. Supreme Court in Expressions Hair Design v. Schneiderman, 581 U.S. 37 (2017), in which the Court ruled that a New York law prohibiting merchants from imposing a surcharge on customers electing to pay by credit card regulated merchant speech and was subject to First Amendment analysis, and therefore was not enforceable. With the enactment of SB 677, Oklahoma formally joins the list of states that no longer prohibit merchants from imposing a surcharge on credit card transactions.
Key Requirements of SB 677
The changes to Oklahoma Statute Title 14A, Section 2-211, which becomes effective November 1, 2025, apply to "any person, entity, or retailer doing business in this state in any sales, service, or lease transaction including, but not limited to, any consumer credit sales transaction." Okla. Stat. Tit. 14A, § 2-211(E)(2).
As revised, sellers in Oklahoma expressly are permitted to impose a surcharge (or "additional amount imposed . . . at the time of a credit card transaction that increases the amount of the transaction for the use of a credit card as payment," Okla. Stat. Tit. 14A, § 2-211(E)(3)), subject to the following requirements (see Okla. Stat. Tit. 14A, § 2-211(B)):
- Notice Requirements: Sellers must clearly and conspicuously display the amount of the surcharge at both the point of entry and the point of sale for in-person transactions. For online transactions, the surcharge must be disclosed on the home page and at the point-of-sale webpage. For transactions conducted over the phone, the required information must be verbally disclosed to the customer.
- Surcharge Cap: The surcharge may not exceed the lesser of: (1) two percent of the total transaction amount or (2) the actual cost charged to the seller to process the credit card transaction. Unlike Colorado's changes to its surcharge law in 2021, the seller is limited to the lesser surcharge.
- Exclusivity Exception: If a seller only accepts credit cards as payment, a surcharge may not be imposed, as the customer is not considered to have chosen the credit card payment method in such cases.
Discounts and Definitions
The law, as revised, continues to allow sellers to offer unlimited discounts to encourage payment by cash, check, or similar means. For example, a seller could advertise that a product is $95 if payment is made in cash, or $100 if payment is made by credit card. If, however, the seller charges the same price for a product regardless of payment method but imposes a surcharge when a customer elects to pay via credit card, then the seller must comply with the new requirements summarized above.
Exceptions
Oklahoma Statute Title 14A, Section 2-211(C) maintains a previous exception for money transmitters registered with the U.S. Department of the Treasury pursuant to 31 C.F.R. § 103.41 who provide an electronic funds transmission service, including by telephone and the internet. Money transmitters may continue to charge a different price for a funds transmission service so long as the price charged for a service paid for with an open-ended credit card or debit card account is not greater than the price charged for such service if paid for with currency or other similar means accepted within the same mode of transmission.
Additionally, Oklahoma Statute Title 14A, Section 2-211(F) continues to exclude private educational institutions, which may continue to impose a service fee limited to bank processing fees and financial transaction fees, the cost of providing secure transactions, portal fees, and the fees necessary to compensate for increased bandwidth incurred as a result of providing the transaction.
Implications for Businesses and Consumers
With the passage of SB 677, Oklahoma formally repeals its ban on credit card surcharges, eliminating potential uncertainty for sellers related to the enforceability of Oklahoma's no-surcharge law. Any seller doing business in Oklahoma and accepting credit cards for payment should review their payment policies and ensure compliance with the new notice and surcharge limitations before the law's effective date of November 1, 2025.
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