Q. What is a surcharge fee?
A. A surcharge fee is an additional fee that a merchant adds to a customer’s transaction when he or she uses a credit card for payment.
If you have other questions about surcharge fees or surcharging in general, talk to one of our knowledgeable consultants.
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 is a percentage of the sale or transaction that cannot exceed 4%. Adding a surcharge fee to a sale is limited in seven states currently and to 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 consultants 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 difficult and remaining compliant even for tech-savvy organizations. IntelliPay’s intelligent platform eliminates the complexity and ensures ongoing compliance. To learn more or get your questions answered, talk to one of our knowledgeable consultants.