Service Fee Rules:

• Visa Rule ID #0029275 sets out the requirements for a Service Fee at a Government or Education Merchant. 
• If the Government or Education Merchant qualifies to charge a Service Fee, the Merchant must process the Service Fee as a separate transaction.
• The amount due is processed on 1 Transaction  (MID #1). This MID deposit the amount due by the citizen or student into the government or educational entity’s bank account. The Service Fee is processed on MID #2. These funds are deposited into the registered Third-Party Processor’s (TPP) bank account. Interchange dues and assessments are billed to the TPP’s bank account and they use the Service Fee Amount to cover the cost of the processing fees. Thus, the Service Fee Model is a no-cost processing solution for the merchants that qualify for this program. There are no state restrictions on the Service Fee Model.

IntelliPay Solution

IntelliPay’s Service Fee Model is 100% compliant with the card brand rules. We offer multiple, configurable solutions that will fit your needs. We realize that not every government or education entity is the same.

That is why from Online to Card Present, we have a solution that empowers you to control your payment environment.

Site Fee Rules:

• The customer is assessed a modest fee from IntelliPay for using the software, receiving customer support, and processing a payment via online or over-the-phone.
• In-Person or Card Present Payments are not eligible.
• Merchants will NOT receive the site fee amount.
• DBA naming of the MIDs would be as follows: MID #1: “XYZ Company” and MID #2 “XYZ Company Usage Fee.”
• Fees would be displayed BEFORE the customer makes the payment and the customer will have to check a box to agree to pay the fee.

IntelliPay’s Site Fee Model is ideal for:

• Merchants who do not wish to receive the convenience fee or surcharging fees into their bank account.
• Merchants that do not make enough to cover their processing costs.

A Fee-Based Management Solution

This “outsourced fee-based management solution” not only eliminates a merchant’s card not present processing costs, but manages the fee program, enabling the merchant to receive 100% of the funds without the accounting headaches and hassles.

Utility Fee Rules:

• Utility companies are enrolled and boarded with the correct MCC code for the card brands
• Utility paying customers will be assessed a flat rate, convenience fee to be determined based on volume and average ticket
• IntelliPay will use the convenience fee to cover the cost of processing, support, and software, making this program revenue neutral ($0 cost) solution for the Utility Company.

IntelliPay Solution

Our unique, proprietary solution provides the payment technology, processing MIDs, and convenience fee technology, enabling our Utility clients with a revenue neutral ($0 cost) solution for accepting credit/debit cards for utility payments.

Convenience Fee Rules

• The merchant must charge a flat fee.
• The fee and the amount due must be combined into one payment
• The fee is assessed to online, pay-by-phone, or card not present (CNP) payments
• Merchant must allow customer an alternative payment option that does not charge a fee.

Not a surcharge
The Convenience Fee Model is separate from the Surcharge Fee Model, which charges a fee simply for the privilege of using a credit card. 

IntelliPay Solution

IntelliPay enables merchants with the Convenience Fee Model for their online, over-the-phone, or CNP payments. Additionally, we enable the merchant with an alternative that does not charge a fee and or we enable the merchant to not charge the fee on a case-by-case basis

Shared Fee Rules:

• The fees do NOT go to the merchant.
• In this model, there are two MIDs. MID #1 is the merchant’s MID, where the amount owed by the customer is deposited into the merchant’s bank account. MID #2 is Intellipay’s MID, where the fee amount is charged to the customer and deposited into IntelliPay’s custodial pool account.
• The fees for MID #1 are billed to the merchant. The fees for MID#2 are billed to IntelliPay.
• The merchant pays for the processing fees at cost with no markup.
• IntelliPay uses the money from the customer to pay for MID#2 and to make their margin.

IntelliPay Solution

For merchants that do not want to put all of the costs of technology and processing on to their customers and wish to share in carrying the load, the shared fee program is a perfect match. Merchants can pay their portion of the technology and merchant account, while their customers can cover their portion. This “shared fee-based management solution” reduces all card not present processing costs to the merchant. Allow our alternative fee-based technology to manage the program for you, enabling you and your entity to reduce the expenses of your bottom line without the accounting headaches and hassles.

Surcharging Rules:

• Surcharging is only allowed on credit cards. Debit and Prepaid cards are not allowed to be surcharged.
• The fee and the amount due must be processed on one merchant account.
• The merchant receives the extra funds and uses them to offset the cost of their merchant account
• The fee must be the same across all card brands (can’t discriminate)

IntelliPay Solution:

IntelliPay’s Surcharging Program is certified with various processors. We take the management of the program out of your hands and have it all automatically configured for you. We allow the merchant to charge up to 4% on all credit cards, while prohibiting the surcharge on prepaid and debit cards. Additionally, the software will not add a fee if the customer making a payment lives in one of the prohibited states. Our surcharging program allows our merchant to offset their costs of credit card processing, making it an affordable solution.

IntelliPay Solution

While this may not be considered as an alternative fee-based solution, we still want to provide alternative pricing models to fit our client’s needs. We offer the following:

• One Rate Plans
• Interchange + Cost Plans

Contact us today to see what plan and technology fits your needs.