Merchant Surcharging
Considerations and Requirements
Merchant Surcharging Considerations and Requirements
Before you decide to add a surcharge, or check out fee, consider the following:
What will...
My customers think?
I need to disclose to my customers?
My competitors do?
Is surcharging permitted in my state?
States currently prohibiting or limiting surcharging
- Connecticut
- Maine
- Massachusetts
- Oklahoma
When can I begin?
30 days’ notice required
- Merchants are required to inform their processor 30 days before surcharging.
When can I surcharge?
Credit transactions only
- Surcharging applies only to credit transactions in the U.S. and U.S. territories. Debit and prepaid cannot be surcharged.
How much can I surcharge?
No more than the cost of acceptance
- The surcharge cannot surpass your total cost of accepting the credit card.
What must I disclose to my customers?
Proper signage and notification required
- Disclosures must be provided at the point of entry and point of sale.
- Itemization of the final surcharge amount must be identified separately on the transaction receipt.
Visa’s Position on Surcharging
Visa remains opposed to surcharging, a practice that penalizes cardholders for using their preferred form of payment.
The benefits of card acceptance include:
- Increased sales
- A fast and convenient checkout experience
- Improved security
- Guaranteed payment and faster processing time
More information on surcharging guidelines and requirements can be found at www.visa.com/merchantsurcharging
In cases when the merchant’s cost of acceptance exceeds 3% of the underlying transaction amount, the merchant cannot assess a surcharge above 3%.
Merchant Processing Solutions, Inc. is a registered ISO of PNC Bank, N.A., Pittsburgh, PA – Member FDIC *American Express may require separate approval. ** Based on approved credit
Copyright © 2024. MerchantPRO Inc. All rights reserved.
Copyright © 2024. MerchantPRO Inc. All rights reserved.