Visa and the Card Brands are heavily policing the program and they will fine you for non-compliance. Here are a few tips to surcharging:
Live in a state where surcharging is allowable by law
Register as a surcharging merchant with the Visa and the Card Brands
The Surcharge may not be greater than the cost of acceptance
The Surcharge may not be greater than 4%
You MAY NOT Surcharge Debit or Prepaid Cards EVEN IF YOU Take Payments over the phone or through the web
You must clearly display your surcharge at the Point-of-Sale and on your receipts.
As in all things, our ultimate goal is to make YOUR customer’s experience the best it can possibly be. Having a compliant surcharge program is a great way to enhance your bottom line while still giving a choice to your customers’ of whether they pay the surcharge or not. Since Debit Cards were regulated through the Durbin Act in 2010, two-thirds of debit card transactions are priced at .05% + $0.22 per transaction. (All-in with Visa/MC fees the cost is about .19% + $.24/transaction) That’s whether they are swiped or taken via the web or over the phone! Why charge your customers 4% on those cards? You can easily pay that fee as is governed by the card brands and charge a fee to your customers on the high-valued points cards and rewards cards.
PayZoom, Inc. is a registered ISO of Worldpay and Fifth Third Bank.