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Card Usage Surcharges

Note: recent card litigation and settlements are changing the rules on surcharging. Read the latest blog entry on Payment Card Usage Surcharges.

Keep in mind that these states prohibit surcharging for credit cards include California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.

The Federal Reserve Bank of Kansas City wrote a June 2012 payments system research briefing on Discounts and Surchages: Implications for Consumer Payment Choice.

Instead of Convenience Fees

Industry changes now allow merchants greater flexibility to steer their customer's payment choice.

• MasterCard and Visa Settle Antitrust Case
• Merchant Card Acceptance changes under the Dodd-Frank Act

Best practices for implementing steering policies include offering a discount or benefit to encourage your preferred payment method, offer a promotion after the transaction is completed (like a credit on the billing statement or rebate) or use a separate coupon or voucher.

For more information, please call us at 800-397-2380.