Payment processing in California.
VitaPay serves merchants in California, as it does in every US state. Below are the California rules and official offices worth knowing before you take your first card payment there: the surcharging rule, the sales-tax agency and where the business is registered.
Adding a credit card surcharge in California.
Current rule not confirmedCivil Code 1748.1(a) still says no retailer may impose a surcharge on a consumer who pays by credit card. In Italian Colors Restaurant v. Becerra (9th Cir., Jan. 3, 2018) the court held it unconstitutional only as applied to the plaintiff merchants, not on its face. Separately, SB 478 (effective July 1, 2024) requires advertised prices to include all mandatory fees; the Attorney General says a card fee avoidable by paying another way is generally not mandatory, but a card-only business must include it in the advertised price.
Citation: Cal. Civ. Code 1748.1; Cal. Civ. Code 1770(a)(29) (SB 478)
We could not confirm how the current California rule applies. Check with the state or your own adviser before adding a surcharge, starting with: California Civil Code 1748.1.
General information, not legal advice. Surcharging laws change, and card network rules apply in addition to California law. Confirm the current rule with the state or your own adviser before adding a surcharge; the sources below show when this was last read.
Sales tax and registration in California.
Sales tax at the point of sale
Sales tax is configured on the terminal before you go live. In California, the agency to register with is:
California Department of Tax and Fee Administration (CDTFA)Registering the business
A merchant account is opened in the name of a registered business. In California, business entities are registered with:
California Secretary of State, Business Programs Division (bizfile Online)Sources and date checked.
- California Civil Code 1748.1 Checked September 21, 2026
- Italian Colors Restaurant v. Becerra, 9th Cir. opinion (Jan. 3, 2018) Checked September 21, 2026
- California Attorney General, SB 478 hidden fees FAQ Checked September 21, 2026
- NFIB Legal Center, Credit Card Surcharge and Cash Discount Laws Guide 2025 (July 2025) Checked September 21, 2026
- Nickel, Credit Card Surcharge Laws by State (as of July 2026) Checked September 21, 2026
- Lifted Payments, Credit Card Surcharge Rules by State (updated Aug 3, 2026) Checked September 21, 2026
- California Department of Tax and Fee Administration (CDTFA) Checked September 21, 2026
- California Secretary of State, Business Programs Division (bizfile Online) Checked September 21, 2026
Priced the same way in every state.
Interchange and card-network assessments passed through at cost, plus a stated processor margin, quoted in writing for your business. No long-term contract and no early termination penalty.
