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 a 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 only 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 prohibited in four states currently and applies only to a transaction made using credit cards. A merchant cannot add a surcharge fee to a 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 complicated. Keeping up with the latest changes can be time-consuming and remaining compliant difficult even for tech-savvy organizations. Organizations need a credit card processing company that has experience in fee-based payment options. IntelliPay’s intelligent platform eliminates the complexity and ensures ongoing compliance. To learn more or get your questions answered, talk to one of our experts.