Q. What is a surcharge fee?
A. A surcharge fee is an additional fee added by a merchant to a transaction when a customer uses a credit card for payment.
If you have other questions about surcharge fees or surcharging in general, talk to one of our experts.
Q. What is the difference between a surcharge and convenience fee?
A. Convenience fees and surcharge fees are often used interchangeably, but they’re not the same thing.
A surcharge is a fee charged to customers simply because they’re using a credit card. The surcharge fee can be a fixed amount or a percentage of the transaction. Surcharge fees cannot exceed 4%. Adding a surcharge fee to a sale is prohbitied in four states currently and applies only to transaction made using credit cards. A merchant cannot add a surcharge fee to pre-paid, gift card, debit or other stored value cards.
Convenience fees are a fixed amount regardless of the size of the sale or transaction. Convenience Fees are only allowed on Card Not Present Transactions i.e. phone payments and online payments.
To discover whether a surcharge or convenience fee is right for your situation, talk to one of our experts today.
Q. How can a merchant learn more about whether surcharging is right for their organization?
A. Surcharging can be complex. Keeping up with the latest changes can be tme consuming and remaining compliant difficult even for tech-savvy organizations. Organizaitons need a credit card processing company that has experience in fee-based payment options. IntelliPay’s intelligent platform eliminates complexity and ensures ongoing compliance. To learn more or get your questions answered, talk to one of our knowledgeable experts.