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Education
ChapterTitle
StreetSmarts SM

What is compliant surcharging?

New rules for 2023

By Nick Cucci Also, it is important to know that not all credit card pur-
Fluid Pay LLC chases qualify for surcharges—and debit cards never
qualify for these fees.
urcharges can be a point of frustration for When to implement surcharges
shoppers, but for businesses, they are often
considered a standard business practice. These Deciding whether to apply surcharges to customer pur-
S optional checkout fees can be beneficial for chases can vary on a case-by-case basis. Some businesses
businesses and help them to stay ahead of certain fees. use them; others do not. Knowing whether or not to as-
However, essential rules must be followed. In this article, sess a surcharge is a matter of preference for each busi-
I will explore compliant surcharging and how to stay in ness, but there are quite a few considerations that might
alignment with shifting Visa guidelines. influence whether or not it is a good idea for a particular
business in your portfolio.
According to Investopedia, a surcharge is a fee that is
assigned to the customer upon checkout. These fees are Businesses can apply a surcharge as long as they adhere
commonly used when someone uses a card to pay for a to certain standards, but there are also other factors at
specific product or service. The value of the surcharge play. Before taking steps to implement surcharging, it
may vary. However, Visa requires that certain rules be is important to first consider what making this decision
adhered to when assessing a surcharge. means for the business in question. Is this fee likely to

Visa credit cards, debit cards and surcharges alter the perceived value of the product? Does it feel ap-
propriate in combination with the price of the original
Visa released a new set of rules and guidelines regarding product? For every business it's important to ask whether
surcharges imposed on purchases made with Visa credit surcharging is truly worth it.
cards (see https://tinyurl.com/5dp35r8r). These new rules
apply to any credit card interaction where a merchant In addition to the customer experience, companies will
intends to assess a surcharge. In order to remain in com- want to consider the full spectrum of the financial com-
pliance with Visa standards, companies and small busi- mitment. Credit cards can often come with other fees,
nesses must be aware of these changes and adapt their particularly when purchasing certain items from certain
business practices as needed. Failing to adhere to these places. Determine if this is standard practice for busi-
standards may result in penalties. nesses in your industry or if it is something that will set
you back compared with companies similar to yours.
Since surcharges are commonly associated with cards, Navigating surcharges while
many merchants take this as a universal rule. However,
it's important to remind them that surcharges cannot be adhering to Visa standards
applied to business transactions involving debit cards. Compliance is a key concern for all businesses. In today's
They are exclusively reserved for credit card purchases. growing digital world, these rules are what govern each

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