Your Surcharging Questions Answered: Common Questions for Small Business Owners

Common Questions About Surcharging

1. Can I Charge Different Surcharges for Different Credit Cards?

No, surcharging must be applied evenly across all credit card brands. This ensures compliance with most card network rules and keeps the process transparent for customers.

2. Can I Apply Surcharges to Other Fees, Like Delivery or Taxes?

No, surcharges should only cover credit card processing fees. Extra fees like delivery charges or taxes cannot be surcharged.

3. Do I Need to Refund the Surcharge If I Process a Refund?

Yes, if you issue a refund, the surcharge must also be returned to the customer along with the original transaction amount.

4. Is There a Limit to the Surcharge Amount?

Yes, most states cap surcharges at 3% of the transaction amount, which means your surcharge cannot exceed this percentage. Keeping within this limit helps ensure compliance.

5. Can Surcharges Be Applied to Recurring Charges?

Yes, surcharges can be added to recurring payments, as long as you disclose the surcharge amount to the customer during the initial transaction.

6. Can I Label Surcharges as “Convenience Fees”?

No, surcharges and convenience fees are different. Surcharges must be explicitly marked as fees to cover credit card processing costs.