Credit Card Terminal

Question

Q: Can I add a surcharge to card transactions?

Q: I am a merchant who intends to surcharge. What is the process I need to follow?

Q: What is a payment card surcharge?

Q: Can I assess a surcharge on both credit and debit card purchases?

Q: Can I assess a surcharge on debit card transactions for which the cardholder using a debit card chooses “credit” on the point of sale terminal?

Q: Are there limits to the amount I can surcharge?

Q: Can I choose to surcharge some credit cards and not surcharge other card brands?

Q: Am I required to disclose the surcharge to my customers?

Q: What laws exist that may relate to surcharging?

Q: I operate stores in multiple states. I understand that state laws prohibit me from surcharging in some states where I operate, but not others not. Does that mean I can’t surcharge in any of the states where I operate?

Q: Can I pick and choose what types of cards I add a surcharge to?

Q: Does the ability to surcharge apply to merchants globally?

Q: Would you like more information from Visa?

Q: Will the surcharge amount reflect in my sales total?

Q: Can I run a report to see how much I’ve collected in surcharging?

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1-855-547-1385, Option 5

Accepted Answer

As a result of a legal settlement to resolve claims brought by a group of U.S. merchants, merchants in the U.S. and U.S. territories may add a surcharge to certain credit card transactions. Merchants who choose to surcharge must follow consumer disclosure and other requirements agreed to as part of the settlement.

Accepted Answer

U.S. merchants that intend to surcharge are required to:

Provide written notice to Fidelity Bank Merchant Services with your intent to surcharge at least 30 days in advance of beginning to surcharge.
Limit surcharging to credit cards only (no surcharging debit and prepaid cards) and limit the amount to your merchant discount rate for the applicable credit card surcharged. Allowed discount rate can be no more than 3% and should not exceed the merchants set discount rate.
Disclose the surcharge as a merchant fee and clearly alert consumers to the practice at the point of sale – both in store and online – and on every receipt.

Merchants should also consider whether they comply with all applicable state and/or federal laws. Currently, several states have laws that prohibit surcharging. As of April 15, 2023, they are: Connecticut, Maine, Massachusetts, and Oklahoma. Note also that Merchants located in Colorado may not surcharge more than 2% as per State law.

To learn more about payment card surcharge, please call 1-855-547-1385 and select option 5.

Accepted Answer

A payment card surcharge, also known as a checkout fee, is an additional fee that a merchant adds to a consumer’s bill when he or she uses a card for payment. Please note that the ability to surcharge only applies to credit card purchases, and only under certain conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.

Accepted Answer

No. The ability to surcharge only applies to credit card purchases, and only under certain conditions. U.S. merchants cannot surcharge debit card or prepaid card purchases.

Accepted Answer

No. The ability to surcharge only applies to purchases made with a credit card, and only under certain conditions.

Accepted Answer

Yes. U.S. merchants may assess a surcharge on credit card purchases that does not exceed the merchant discount rate for the applicable credit card surcharged, with a 3% maximum.

Accepted Answer

Yes, however, merchants must surcharge each card brand on the same terms and conditions as any equal or higher cost competitor that imposes limits on surcharging.

Accepted Answer

Yes. U.S. merchants that surcharge must disclose the surcharge dollar amount on every receipt. In addition, disclosures that a merchant outlet assesses a surcharge on credit card purchases must be posted at the point-of-entry and point-of-sale. Disclosure requirements and sample compliant signage can be found here.

Accepted Answer

Currently, several states have laws that prohibit surcharging. As of April 15, 2023, they are: Connecticut, Maine, Massachusetts, and Oklahoma. Note also that Merchants located in Colorado may not surcharge more than 2% as per State law.

Accepted Answer

No. If a merchant is prohibited from surcharging in one state, Card Brand rules do not prevent the merchant from surcharging in other states that allow the practice.

Accepted Answer

U.S. merchants have the option to add a surcharge at the “brand level” to all credit card transactions, or to particular types of credit card transactions at the “product level” (e.g., Visa Traditional, Visa Traditional Rewards, MasterCard World Pay), but not both.

Accepted Answer

No. The settlement agreement impacts Visa and MasterCard’s rules related to the surcharging of credit card purchases made in the U.S. and U.S. territories only. Surcharging remains prohibited outside the U.S. unless there is a local law or variance that requires merchants be permitted to engage in the practice.

Accepted Answer

Frequently Asked Questions for Merchants

Merchant Surcharging Considerations and Requirements

Merchant Credit Surcharging

Notice to Merchants about Surcharge Rule Changes

Sample Point of Entry and Point of Sale Notices

Maximum Surcharge Limits and Average Cost of Acceptance

Accepted Answer

Yes, your daily merchant deposit will group your sales and surcharge amounts together.

Accepted Answer

Yes, on your daily batch totals that print from the Ingenico terminal, you can see a split of sales versus surcharge totals.