fees with surcharging
Programs designed to save you money and follow the proper rules.
What is Surcharging?
Surcharging, often referred to as “checkout fee,” is an additional cost merchants often add to the listed price of goods or services for credit card purchases to delegate the fees incurred by accepting credit cards to their customers.
Economic issues and limitations caused by the pandemic have increased the hardships faced by both merchants and consumers, as a result we see an increased popularity in surcharging with (23%) of merchants reporting they used surcharging to offset card processing fees. Those who did charged their customers an average fee of 2.7%
- Starting April 14, 2023, merchants who intend to surcharge are no longer required to register with Visa.
- The maximum allows surcharge in the US will be reduced to 3% from the current 4% maximum.
- In the U.S. Surcharging is prohibited in Connecticut, Massachusetts, and Puerto Rico. Colorado allows surcharging, but only up to 2%.
- Canada allows surcharging, but only up to 2.4%
What do Customers Think?
A survey of consumers conducted in Nov. 2021, found that (50%) of consumers reported paying a surcharge fee at least once. Approximately, (85%) reported paying when presented a surcharge fee.