A merchantA business that accepts credit cards for goods or services. account for a small and midsize business requires many careful considerations in payment practices for the best chances of success. The caution applies to physical and online business payment solutions since a slight deviation in prices can significantly impact the overall business budget. One necessary process that requires delicate planning involves registering surchargesAny additional charges to a merchant's standard processing fees. They are a result of non-qualified transactions of different communications methods. with a card brand (e.g., following VISA credit card surcharge rules).
While credit surchargesAny additional charges to a merchant's standard processing fees. They are a result of non-qualified transactions of different communications methods. in US states and US territories generally involve a shared list of rules (e.g., surcharge capped at 4% of the price), each processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... requires a slightly different registration process. Therefore, you will need to find out and follow the exact steps for each card company to achieve a smooth setup for your credit surcharge.
Visa Surcharge Rules
The first step of VISA surcharge rules requires your business to notify the company and your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. at least 30 days before implementing surcharge policies. You should submit the official notification form to VISA via their official website. As with industry standards, you must limit surcharge to credit card transactions ( the digital signing of debit cards does not qualify).
Also, you should check that your business fulfills all state and federal laws and display surcharge disclosures at your store’s point of entry and point of sale. Once in effect, you should disclose surcharge dollar amounts on every invoice and receiptA hard copy of the description of the transaction that took place. as a separate line item.
MasterCard Surcharge Rules
For MasterCard surcharge rules, you need to inform your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. at least 30 days before implementing the policy. Your business needs to fulfill disclosure obligations outlined by MasterCard with specific information.
These details include your company’s name, business contact information, number of surcharged locations, business channel (e.g., mail order or e-commerce), and type of surcharge (i.e., service or product).
Additionally, MasterCard and VISA provide you with the flexibility of applying surcharge fees at the brand or product level. Your surcharge will affect all credit products for the former, while the latter applies to specific cards.
However, you need to choose between the two surcharge levels as having both is not allowed. Also, you should inform the credit company of your preferred approach and make clarifications in your disclosure signage. You may access and submit MasterCard’s disclosure form from the company’s official website.
AMEX Surcharge Rules
American ExpressAn organization that issues cards and acquires transactions, unlike Visa and MasterCard, which are bank associations. surcharge rules follow similar registration steps to MasterCard and VISA, with a more seamless process. The credit company does not require the submission of a formal notice as long as your business fulfills all other standard disclosure requirements.
Additionally, AMEXAn organization that issues cards and acquires transactions, unlike Visa and MasterCard, which are bank associations. does not require the explicit display of the surcharge amount in dollars and cents on your network authorizationThe request to charge a cardholder for goods or services. Authorization must be settled in order to post the authorization to the cardholder’s account. If not processed within a certain time frame authorizations will be cancelled. The time period is usually from 3-7 days.... request and settlements.
Discover Surcharge Rules
Similar to other credit products (except for AMEXAn organization that issues cards and acquires transactions, unlike Visa and MasterCard, which are bank associations.), for Discover cards, you should inform the credit company and your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. via formal writing at least 30 days before implementing a surcharge.
You may access and fill a surcharge form to expedite the process by filling fields such as merchantA business that accepts credit cards for goods or services. location, contact information, and service provider details.
Summarizing the Steps
For quick reference, most major card brands practice the following registration process:
- Check that your state laws permit surcharge practices. For businesses operating across multiple states, surcharge only applies to outlets within jurisdictions that permit the policy.
- Inform your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. and card company representative of your intentions to surcharge credit transactions. Always contact your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. directly.
- Access and submit the card company’s online surcharge form.
When in doubt during the registration process, enquire with a representative from your card company or reach out to NMA, your trusted merchantA business that accepts credit cards for goods or services. payments advocate.
NMA – Registering Surcharge with Confidence
The specialists at NMA believe that your business can overcome the costly and unreasonable fees of card processors with specialized support and guidance. By partnering with us, we will help you establish optimized payments solutions for your business needs, such as registering credit surchargesAny additional charges to a merchant's standard processing fees. They are a result of non-qualified transactions of different communications methods. without issues or delays.
At times, your business might need to reconsider credit processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... arrangements or update payment gateways to account for surcharge fees automatically. In such scenarios, the NMA team will work with you to discover the most suitable approach while meeting other merchantA business that accepts credit cards for goods or services. account regulations (e.g., navigating PCI compliance and chargeback fees).
NMA will help you take complete charge of your payment processing without guesswork.
About NMA
NMA is a merchantA business that accepts credit cards for goods or services. advocacy group dedicated to reducing or eliminating the unnecessary fees associated with accepting credit card payments. Since 2004, NMA’s payment processing solutions have delivered tailored solutions, best-in-class customer service, and high-quality service offerings for businesses across multiple industries. Whether it’s high-risk or low-risk, brick-and-mortar or e-commerce, NMA will create the best processing experience for your company. For more information, visit us at our legacy.nationalmerchants.com or by calling (866) 509-7199