As of [$c-month-year]April 2025[$c-month-year], Oklahoma’s legal stance on credit card surcharges remains unsettled. In December 2019, the state’s Attorney General issued an opinion suggesting that enforcing the anti-surcharge statute might infringe on merchants’ First Amendment rights, depending on how the term “surcharge” is interpreted. 

Nevertheless, the statute itself was never repealed, and no court has formally ruled it unconstitutional. The opinion was prompted by inquiries from a state senator in consultation with payments industry advocates. While it led many to believe surcharging was broadly allowed, that interpretation overreaches the opinion’s scope. 

The Attorney General explicitly noted that not all pricing structures had been reviewed, and that some applications of the statute could still be constitutional. 

In practice, this leaves Oklahoma MSPs in an unclear legal position. While enforcement is currently unlikely, the statute remains active, and applying surcharges carries risk unless handled with complete transparency and a strong compliance framework.

This article outlines what Oklahoma MSPs need to understand about the state’s unsettled surcharge laws. 

It also introduces actionable strategies for managing costs while staying out of regulatory trouble. These include encouraging clients to pay via ACH and using MSP-specific payment automation to streamline billing while reducing exposure to high-fee card transactions.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult qualified legal counsel, and regularly review internal billing procedures to ensure surcharge practices align with state law.

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What is Credit Card Surcharging for Oklahoma MSPs?

Credit card surcharging refers to the process of adding a fee, either as a percentage of the total invoice or as a flat dollar amount, when a client pays with a credit card. The goal is to recover some or all of the processing costs that MSPs incur when clients use a credit card to pay their bills.

In states where surcharging is clearly permitted, MSPs often use this approach to offset credit card charges ranging between 2% and 4% per transaction. 

For example, an Oklahoma MSP billing $3,200 for monthly services might apply a 3.5% surcharge, resulting in an added fee of $112. That surcharge goes toward covering the provider’s own cost to accept the card. 

However, card brands (Visa, Mastercard, American Express) place firm limits on what can be charged, typically capping surcharges at 3% or 4%, whichever is lower. They also require specific notices to be given to clients before payment is processed.

Oklahoma’s situation is more complex. The law banning surcharges—still technically active—was called into question by a 2019 Attorney General opinion. While this opinion opened the door for certain types of surcharge models, it didn’t declare the law void. 

Instead, it suggested that some applications of the statute could still be constitutionally enforced, depending on the billing structure. In other words, while surcharging may be allowed under certain pricing frameworks, it’s not a guaranteed safe harbor.

MSPs in Oklahoma looking to manage payment costs without crossing compliance lines often turn to options like ACH payments, built-in service pricing, or platforms like FlexPoint. We will discuss these in more detail in upcoming sections.

Understanding Credit Card Surcharging Laws in Oklahoma

Oklahoma Statutes Title 14A §2-417 prohibits businesses from adding a surcharge when clients choose to pay with a credit card rather than with cash, check, or another traditional method.

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This long-standing rule applies broadly to all sellers and service providers, including managed service providers. The law's intent is to keep final pricing consistent and transparent, regardless of payment type.

The statute reads, in part:

“No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check, or similar means.”

Historical Context: Credit Card Surcharging Ban in Oklahoma

Oklahoma’s ban on credit card surcharges has been in place for decades under Title 14A §2-417 of the Oklahoma Consumer Credit Code. The statute plainly prohibits any seller from charging more when a client chooses to pay with a credit or debit card instead of cash, check, or a similar method. 

This restriction applied equally across industries, making it illegal for MSPs to recover the cost of credit card processing through line-item surcharges.

For years, Oklahoma MSPs either absorbed these costs or quietly adjusted service prices to compensate. The surcharge ban effectively limited how openly MSPs could manage transaction fees, even as other states began to allow surcharging under strict conditions. 

The law's longevity was due to its alignment with consumer protection values, which ensured buyers were not penalized for choosing one payment method over another.

The conversation shifted after a series of federal court rulings—including Italian Colors and Rowell—invalidated similar laws in other states, arguing they infringed on commercial speech. The AG noted that Oklahoma’s statute—if interpreted as a restriction on how merchants communicate prices—could raise First Amendment concerns. 

However, unlike in Florida or California, no court has ruled on Oklahoma’s law directly. The AG also stopped short of saying the statute could never be enforced, instead noting that certain pricing models might still fall within legal boundaries.

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Current Legal Status and Its Implications for MSPs

As of [$c-month-year]May 2025[$c-month-year], the statute remains active, and no repeal has been passed. This creates a scenario where the law is not being actively enforced but could still be applied under some circumstances, especially if a surcharge is presented in a misleading or inconsistent way.

To complicate matters, Visa still lists Oklahoma as a no-surcharge state, meaning that adding a surcharge to a Visa transaction could violate the network’s terms—even if the state isn’t actively prosecuting violators.

For an MSP that sends a $9,000 invoice with a 3% surcharge, the added fee would be $270. If that invoice were paid with a Visa card, and Visa deems the surcharge to violate its policy for Oklahoma merchants, the MSP could face network sanctions, even in the absence of a state enforcement action. 

Meanwhile, if the client disputes the charge or files a complaint, the issue could escalate into a legal or reputational problem.

MSPs considering a surcharge strategy in Oklahoma must understand that they operate in a regulatory gray zone. Although enforcement appears dormant, the statute is still active, and card networks like Visa may act independently to enforce their own rules.

Ensuring Compliance in a No-Surcharge State

Given the uncertainty, the safest route for Oklahoma MSPs is to avoid credit card surcharges entirely unless and until the law is formally repealed or clarified by the courts. Instead, MSPs can use permitted alternatives that help reduce processing costs without violating state law or card network agreements.

One common strategy is to build small discounts into service plans to incentivize clients to use ACH transfers or checks. 

For example, you might quote a $3,450 service rate and offer a $75 discount when the client pays via ACH, lowering their total to $3,375. This approach complies with Oklahoma law, which does not prohibit cash or ACH discounts, and avoids the surcharge issue altogether.

Many Oklahoma MSPs rely on automated billing platforms like FlexPoint to streamline billing while staying compliant. 

FlexPoint offers tools to apply payment preferences, manage custom pricing rules, and automatically guide clients toward lower-cost payment methods—all without triggering concerns around illegal surcharges or card network violations.

Compliant and Cost-Effective Alternatives for Oklahoma MSPs

With Oklahoma’s surcharge laws in legal limbo, many MSPs are rethinking their payment processing strategies. Since adding fees to credit card transactions could violate state law or trigger action from card brands, switching clients to lower-cost methods is a safer and more cost-effective approach. 

One of the most reliable alternatives is ACH—the Automated Clearing House network, which lets funds move directly between bank accounts without routing through card networks.

For instance, let’s say your Oklahoma MSP sends a $9,300 invoice for monthly cloud management services. If the client pays by ACH, the entire $9,300 goes from their checking account into yours without any cut taken by a credit card processor. 

There are no interchange or assessment fees, nor surcharge questions to worry about.

Below, we cover more of the benefits of ACH payments for MSPs.

1. Faster Processing

Using fintech advancements, Same-Day ACH is now available through tools like FlexPoint. 

If a client’s payment is authorized before 4:30 PM Eastern Time, the funds can arrive in your business account that day. That gives Oklahoma MSPs faster access to revenue, which helps with cash flow needs like software licensing, contractor payments, or vendor orders.

The ability to clear large payments in hours—not days—means MSPs can operate more agilely and with fewer delays between invoicing and income.

2. Lower Fees On High-Value Payments

For many MSPs, ACH’s most significant appeal is its low cost compared to credit card payments. 

ACH payments typically range from $0.25 to $1.00 per transaction. Some providers cap fees entirely, meaning even large transfers don’t lead to unexpected costs.

By comparison, a 3.2% credit card fee on a $9,300 payment would cost $297.60. If ten clients pay by card every month, that’s over $35,000 in annual fees—just to get paid for the services already rendered.

When those same payments are processed through ACH, total costs might be under $120 for the entire year. That’s a massive difference, especially for MSPs trying to control expenses while scaling operations.

3. Security and Reliability

ACH is also less vulnerable to payment disputes and security risks. 

According to a 2023 JP Morgan report, 36% of businesses experienced fraud through corporate credit cards, while 30% reported issues with ACH. 

While no system is risk-free, ACH tends to have fewer chargeback-style issues. Even when reversals happen, merchants have better protection if client authorization was documented correctly.

MSPs in Oklahoma also avoid the hassle of chargeback penalties, which can cost upwards of $190 per incident when you factor in fines, recovery fees, and lost labor. Fewer disputes mean fewer operational disruptions.

ACH also removes the administrative burden of dealing with paper checks or payment delays from card issues like expiration or insufficient limits.

4. Client Convenience

From a client’s point of view, ACH payments are dependable and straightforward. Authorization typically involves a one-time bank form, after which recurring invoices are automatically withdrawn. 

Clients no longer need to enter card details or chase reminders—they just receive confirmation of payment.

Unlike credit cards, ACH doesn’t run into blocked transactions from spending limits or declined charges from expired cards. If funds are available, the payment clears.

This reliability, combined with the ease of setup, makes ACH ideal for busy clients managing IT budgets, approvals, and accounting processes.

For Oklahoma MSPs operating under ambiguous surcharge laws, ACH offers a clean alternative. With tools like FlexPoint, you can route clients to ACH with minimal payment friction, reduce payment costs dramatically, and keep your billing practices compliant, predictable, and client-friendly.

ACH offers the best of all worlds: digital, efficient, inexpensive, and now fast (with same-day processing).

How FlexPoint Can Help Oklahoma MSPs Navigate Payment Challenges

MSPs in Oklahoma must take a strategic and cautious approach when it comes to controlling credit card-related expenses. While some MSPs attempt to implement surcharge programs under the assumption they won’t be penalized, others focus on compliance-first alternatives that don’t rely on risky interpretations of the law.

That’s where FlexPoint comes in. Its MSP-specific payment platform helps Oklahoma MSPs reduce payment processing costs, maintain legal clarity, and improve cash flow without relying on surcharges that could trigger scrutiny from regulators or card brands like Visa/Mastercard.

1. Compliance and Transparency

FlexPoint is designed with regulatory flexibility in mind. 

Oklahoma MSPs navigating the uncertain legal terrain of 14A §2-417 can rely on FlexPoint for configurations that prevent the addition of unauthorized surcharges. Its invoice templates are structured to show clients exactly what they owe—no hidden fees or conditional charges based on payment method.

For MSPs that prefer to steer clients toward low-cost options like ACH, FlexPoint allows discounts to be presented as incentives, not penalties. 

The platform ensures clients paying with credit cards are not subjected to additional charges that could violate card brand policies or raise red flags with compliance teams.

Detailed records can be pulled at any time, giving MSPs the ability to show clean, well-documented payment trails if questions ever arise from banks, clients, or auditors.

2. Operational Efficiency

FlexPoint helps Oklahoma MSPs simplify collections by automating the most time-consuming parts of billing. 

The platform integrates with accounting and MSP software like:

• QuickBooks Desktop
• QuickBooks Online
• Xero
• ConnectWise
• AutoTask
• SuperOps
• HaloPSA

Invoices are generated automatically (based on your pre-set schedule) and paired with payment links that support both ACH and credit card payments. Once a client submits payment, the invoice is marked as paid, the record is updated in the accounting system, and no further action is required.

3. Optimized Cost Management

FlexPoint provides detailed analytics that help Oklahoma MSPs understand exactly where their payment costs are going. 

If an MSP processes $600,000 annually, and 35% of that is paid by credit card at an average fee of 2.8%, they’re spending around $5,880 each year just on card fees. 

Moving even half of that volume to ACH, which typically costs $0.25 to $1.00 per transaction, could save thousands.

The platform also supports Same-Day ACH at no extra charge for a set processing amount each month, helping MSPs improve cash flow without incurring additional processing costs.

Your MSP's use of FlexPoint for billing also benefits clients. At checkout, they’re presented with clear, fee-free options, making it easy to choose ACH without confusion or concern about being penalized for using a credit card. This transparency fosters trust and reduces billing disputes.

Considering that surcharge laws remain vague in Oklahoma, FlexPoint offers a practical way to modernize payments, encourage cost-saving behavior, and operate within the legal gray area without crossing the line.

From automated workflows to data-driven insights, FlexPoint helps providers take control of their payment processing without compromising compliance or client satisfaction.

Conclusion: Adopting Cost-Effective, Compliant Payment Practices

Although Oklahoma’s credit card surcharge statute has come under legal scrutiny, the absence of formal repeal means MSPs must proceed cautiously. Rather than testing the limits of an unsettled law, MSPs can adopt strategies that improve cost recovery without inviting legal risk or violating card brand policies.

The key is to understand both what the statute says and what it aims to prevent: pricing practices that penalize clients for their choice of payment method. MSPs that keep this intent in mind can design billing systems that remain compliant while also supporting financial sustainability.

Encouraging the use of ACH, applying clearly disclosed cash discounts, and accelerating collections through Same-Day ACH are all practical ways Oklahoma MSPs can protect their margins. These methods reduce dependency on credit cards, minimize processing fees, and align with both state expectations and industry rules.

Ultimately, the goal is to build a payment experience that helps your MSP stay profitable, fosters trust with clients, and respects the current legal boundaries in Oklahoma. Despite the statute’s ambiguity, MSPs have plenty of room to operate wisely and efficiently.

With tools like FlexPoint, it becomes much easier to automate these workflows, keep invoices consistent, and provide clients with transparent, well-structured payment options. 

FlexPoint allows you to enforce billing practices that reflect your legal obligations while still supporting operational goals.

Maximize your MSP’s profitability with FlexPoint’s compliant payment solutions.

From ACH to automated invoicing, FlexPoint helps your MSP reduce costs and simplify billing in Oklahoma.

Schedule a demo today to learn more.

Additional FAQs: Credit Card Surcharging in Oklahoma for MSPs

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