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There are legal options for passing on credit card fees to customers. Credit card surcharging and cash discounting are the two main options for passing on fees. Adding a surcharge to credit card...
If using a convenience fee or service fee to offset credit card processing costs, those fees must be uniformly added to all payment methods. In 2018, a federal court ruled that the Texas laws related to surcharging are unconstitutional.
Credit card processing fees are currently legal in most states. When you use your credit card to pay for a purchase, the merchant may add a credit card surcharge or convenience fee to your total. They can also require that you spend a certain amount of money — called a minimum purchase — in order to use your card.
In some states, however, it's illegal for businesses to pass credit card processing fees on to the customer. Keep reading to learn more and see which states have put an end to...
How to Pass on Credit Card Fees to Customers Legally. There are a few ways of legally passing on credit card fees to customers. Some are direct, and some are indirect. Adding a surcharge to cover the credit card fee is the more direct method while incentivizing cash payments is indirect.
Average credit card processing fees range from 1.5% to 3.5%. Learn where these fees come from and how you can reduce your cost in our comprehensive guide.
The short answer is yes—you can legally pass on credit card fees to customers. However, this is not as easy as it seems. Credit card fees are governed by regulations from card networks as well as federal and state laws, which make passing on credit card fees to customers available for one merchant but limited for another.
Can you pass credit card processing fees on to legal clients? Many law firms will want to know whether they can pass credit card processing fees on to their clients. The general answer? Sometimes yes, sometimes no—but it is not recommended.
A merchant incurs processing fees when accepting credit card payments. These fees (and the fact they continue to increase over time) provided the catalyst for the lawsuit we mentioned. Credit card processing fees are around 2% of a transaction.
Surcharge fees differ from convenience fees in that they pass on the processing cost from credit card purchases to the customer.These usually max out at around 3.5% but may vary depending on the fees that your credit card processor charges.The point of a surcharge fee isn’t to cover the cost associated with a specific payment channel — such ...