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Education

So, again, merchants must perform due diligence by re- • The surcharge dollar amount must be clearly stated
searching the rules and regulations set forth by the credit on the checkout page, receipt to the customer and the
card companies and their state laws to ensure compliance. merchant's copy of the receipt.
• When accepting competing credit card brands (for
Each credit card network has established a unique set of example, Visa versus Mastercard) the merchant can-
surcharge rules, so make sure your merchants have ac- not charge a higher surcharge fee for one credit card
cess to the full guidelines they are required to follow. In brand over the other. This applies to all credit card
general, most credit card companies allow merchants to brands.
add a surcharge as long as they adhere to the following
guidelines: • Visa and Mastercard require merchants to register
• The merchant must clearly disclose the surcharge fee their surcharge programs with a written notice 30
days before implementation. This can be done via
to the customer before the purchase is made. a Merchant Surcharge Disclosure Form located at
• Clear signage must be displayed at the establish- https://vi.sa/3RwgVZD and https://bit.ly/3xgTz1Q.
ment's point of entry to indicate a surcharge fee will
be applied to all credit card transactions. These are general guidelines set forth by select credit card
• Surcharging is strictly prohibited on debit card trans- companies and do not include the rules of every credit
actions. card network, nor do they include specific state laws in
place. In addition, credit card brands may alter their re-
• A merchant cannot profit from a surcharge. Sur- quirements at any time, so it's always best to research the
charge fees cannot exceed the merchant's cost of ac- most recent regulations before surcharging.
cepting credit cards, that is, the surcharge fee cannot
exceed the cost of corresponding credit card process- Nicholas Cucci is the co-founder and COO of Fluid Pay LLC. Cucci is also a
ing fees. graduate of Benedictine University and a member of the Advisory Board
and Anti-Fraud Technology Committee for the Association of Certified
• The maximum surcharge percentage a merchant may Fraud Examiners, as a Certified Fraud Examiner himself.. Fluid Pay is the
add to cover their credit card processing fees is 4 per- ONLY 100 percent cloud-based Level 1 PCI Payment Gateway processing
cent.
transactions anywhere in the world. Contact Nick at Nick@FluidPay.com.