Payment Processing Fee Transparency Laws: How Arlington Businesses Must Comply with Virginia’s 2024 Merchant Service Disclosure Requirements

Virginia’s New Payment Processing Fee Transparency Laws Are Reshaping How Arlington Businesses Handle Credit Card Transactions

Arlington businesses are navigating significant changes in payment processing regulations as Virginia’s 2024 merchant service disclosure requirements take effect. On May 2, Virginia Governor Glenn Youngkin signed Senate Bill 1212 (SB 1212) into law, introducing new requirements and prohibitions under the Virginia Consumer Protection Act. Specifically, SB 1212 targets the disclosure of mandatory fees and surcharges in consumer transactions.

Understanding Virginia’s New Disclosure Requirements

No supplier shall, in connection with a consumer transaction, advertise or display a price for goods or services without clearly and conspicuously displaying the total price, which shall include all mandatory fees or surcharges. This sweeping change affects how Arlington businesses must present pricing to customers, particularly when implementing credit card surcharges.

Credit card surcharging is legal in Virginia. However, a new Virginia law went into effect on July 1, 2025 that requires sellers to clearly and conspicuously disclosure surcharge fees in the total price of a transaction. For Arlington merchants, this means the days of adding surcharges at the point of sale without upfront disclosure are over.

What Arlington Businesses Need to Know About Compliance

The new regulations define “clearly and conspicuously” with specific requirements. For written disclosures: Larger type than the surrounding text. Contrasting type, font, or color to the surrounding text. Set off from the surrounding text of same size by symbols or other marks to clearly call attention to the language. Audio disclosures must be stated in a volume or cadence that can be readily audible and understandable.

Arlington businesses offering services with variable pricing face additional requirements. Suppliers that offer goods and services with variable pricing are required to disclose: (1) the factors determining the final price, (2) the associated mandatory fees or surcharges, and (3) that the total cost may vary.

The Impact on Credit Card Processing Strategies

These changes significantly affect how Arlington businesses can implement surcharging programs. Starting July 1, 2025, new amendments to the Virginia Consumer Protection Act will require MSPs to clearly advertise or disclose any mandatory fees, such as credit card surcharges, before a transaction takes place. The fee must be tied to the cost of accepting credit cards, not applied to debit or prepaid cards, and must be disclosed to the client upfront.

The regulations maintain important limitations on surcharging practices. Surcharges must not exceed your actual cost of acceptance and can never be higher than 4%. Additionally, Debit and prepaid card transactions are never eligible for surcharges.

Potential Future Changes on the Horizon

Arlington businesses should also be aware of potential future restrictions. While surcharging is currently permitted in Virginia, HB 1519, passed in April 2024, proposes a ban on surcharges for all electronic payment methods. It won’t take effect unless the General Assembly reenacts it in 2025, but if it does, that could make surcharges unlawful across all industries, including managed service providers (MSPs).

If the law is reenacted, failure to comply could expose your MSP to enforcement under the Virginia Consumer Protection Act, which allows civil penalties of up to $2,500 per violation.

Choosing the Right Payment Processing Partner

With these complex regulatory requirements, Arlington businesses need payment processing partners who understand local compliance needs. For reliable credit card processing Arlington businesses can trust, working with experienced local providers becomes increasingly valuable.

Established providers like Merchant Pro Inc, from our Annapolis headquarters, we’ve helped thousands of businesses across DC, Virginia, and Maryland process payments efficiently while keeping more of what they earn. Their local expertise proves invaluable when navigating Virginia’s evolving regulatory landscape.

It means the people handling your payments understand the specific challenges businesses face in this region. It means when you call with a problem, you’re talking to someone who might actually drive to your location if that’s what it takes to get you back up and running.

Practical Steps for Arlington Businesses

To ensure compliance with Virginia’s new disclosure requirements, Arlington businesses should:

  • Review all current pricing displays and advertisements to ensure total pricing transparency
  • Update point-of-sale systems to clearly display any mandatory fees before transaction completion
  • Train staff on proper disclosure procedures for credit card surcharges
  • Work with payment processors who understand Virginia’s specific compliance requirements
  • Implement proper signage that meets the “clearly and conspicuous” standards

The Broader Context of Fee Transparency

The enactment of Virginia’s SB 1212 may be seen as a response to evolving regulatory landscapes at the federal level, particularly in light of the Federal Trade Commission’s (FTC) final Junk Fee Rule released in December 2024. Virginia’s SB 1212, on the other hand, casts a wider net across various consumer transactions, showing more states working to fill the gap left by federal regulators.

This trend toward transparency reflects growing consumer protection efforts nationwide. Arlington businesses that proactively embrace these requirements position themselves ahead of competitors while building trust with customers through transparent pricing practices.

Moving Forward with Confidence

While Virginia’s new merchant service disclosure requirements create additional compliance obligations, they also level the playing field for honest businesses. Arlington merchants who work with knowledgeable local payment processors can navigate these requirements successfully while maintaining competitive pricing strategies.

The key is partnering with providers who offer both technical compliance solutions and ongoing support as regulations continue to evolve. A Maryland-based company that evaluates each business individually, designs custom solutions, and backs everything with award-winning support.

By staying informed about these regulatory changes and working with experienced local partners, Arlington businesses can continue to offer flexible payment options while maintaining full compliance with Virginia’s transparency requirements.