Visa and MasterCard Compliant Surcharge Tool
As of January 27, 2013, businesses are now allowed to surcharge or add a fee to a credit card transaction to cover the increasing costs of accepting electronic payments as a form of payment. In response to this settlement, we have created a compliant tool available via a web browser or credit card terminal that allows retailers and businesses the ability to instantly see and create card surcharge rules and incentives for consumers to pay for less costly payment methods.
Surcharge or Not to Surcharge, Small Business Support?
Historically surcharging has been viewed as a negative practice although with increasing costs of payment acceptance and understanding from consumers that using higher costs card impact the small business community. During testing, we noticed that well communicated surcharge programs rewarding clients that pay with cash, low cost debit cards and other less costly methods provides assistance for the small business while eliminating the surcharge. When costly methods are used for convenience and consumer demand, consumers understand the reasoning of the small business owner and pays the card surcharge in support of the business owner.
Credit Card Surcharging vs Non Accepting
Increasing number of merchants are removing the ability to accept payments for cash only options. This can be detrimental to your business model. Consumers surveyed would rather pay a surcharge and obtain the product/service vs added inconvenience of leaving the establishment and obtaining cash to return to the location. Of those surveyed, 73% would not return and 36% said they would never return to the establishment for lack of ease. Card surcharging provides an option for those that can’t afford to pay credit card processing fees although still provide the convenience their customers expect.
Free Acceptance of Payments
Visa and MasterCard surcharging provides immediate card acceptance merchant service capabilities without any additional costs. Based on the regulations, businesses are entitled to surcharge up to 4% to cover the expense of acceptance. Surcharging rules can be set based on card type, expense factor or a custom list of options. The business is in complete control of the surcharge amount ensuring their client needs are met. Clients typically see no expense for payment acceptance with implementation of our surcharge tools.
Compliant for All States
Our Visa and MasterCard Surcharge solution is compliant in all States. Although there are some regulations in states not allowing surcharging, our application supports surcharging and also discounting rules. For states where surcharging is restricted, our rules based discounting and incentive solutions for lower costs payments work extremely well and allows the same effect.
No Cost for the Application –100% of funds deposited to your bank
Our application is 100% free with our fee being added to the surcharge. As a component of cost of acceptance, our fee is allowed to be covered in the surcharge to ensure compliance and management of the rules. If currently not accepting payments, we can create account with no monthly fees and cost of acceptance covered by the surcharge within our preferred network. You will receive 100% of the original transaction amount.