Surcharge Online Processing

Surcharge is an additional fee that retailers provide to the purchase cost when a customer will make use of a payment card. The ability of a merchant to add a surcharge is being conditioned on the satisfaction of the merchant in a certain disclosure of requirements which includes the advance notice both of the credit card company and for the merchant’s intention in imposing a surcharge in not less than thirty days.  A certain merchant can satisfy its obligation in the disclosure of the credit card company by providing several information such as the name of the merchant, its contact information like phone number, email address and permanent home address, the number of the surcharging locations, the type of channel like eCommerce, face-to-face, phone order or mail order and the type of surcharge either product or brand.

Surcharge Online Processing have the permission to apply either a surcharge on a product level or a surcharge for the brand level to the credit card companies. A surcharge for the brand level is the one wherein a merchant is charging the same amount of percentage on all the credit cards. On the other hand, a surcharge for the brand level is the one that imposes a certain surcharge on all the credit cards. Looking at the same point of view, the level of surcharge is often subjected to a cap.

The level of the merchant fee can charge a certain cardholder in capped regarding to its relation to the cost of merchant’s credit card acceptance. For those merchants who choose to have a surcharge of brand level, a merchant will be able to surcharge a cardholder at a lesser amount prior to the discount rate of the merchant that he pays for the acceptance of the credit card. On the other hand, merchants who choose to have the surcharge of product level should not cost the merchant to accept a particular credit product as well as the interchange fees on the debit by the amendment’s cap of Durbin.

A merchant should also provide a clear disclosure to the customers at a point of interaction that should be included on the receipt transaction which is provided to the customers by its merchant. Merchants needs to refer to a specific rule for the addition of the customer’s obligation of disclosure.

There is nothing stated in the credit card rule that can affect the obligation of the merchant in complying with the federal law or applicable state. But it is not limited to the state laws that restrict or prohibit the credit surcharging transaction as well as the state and federal law with regards to the misleading and deceptive disclosure.

For a merchant that accepts other brands of payment from the credit network such as PayPal, American Express and Discover, there are additional requirements in which a merchant should surcharge a credit card which depends on the costs of brand to the merchant and to the restriction of surcharge. That is why it is important for a merchant to refer to a rule or contract to get details which deals on the requirements.