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How much will you surcharge customers? Surcharges are capped at 2.4% or the amount it costs you to accept those credit cards, whichever is less.
Unlike credit card surcharges which are a percentage of the total sale, convenience fees tend to cover the processing fee of a transaction. The convenience fee will be fixed for all transactions which means the cost may be more on smaller purchases.
You should be able to find pricing and terms information adjacent to any credit card application. If you can't locate this information, contact the issuer directly and request it. They are required by law to give it to you.
Definition. A credit card disclosure is a document that outlines all of the fees, costs, interest rates, and terms that a customer could experience while using the credit card. Institutions that offer credit cards are required by law to disclose this information.
16a-2-403. Prohibiting surcharge on credit or debit cards. No seller or lessor in any sales or lease transaction or any credit or debit card issuer may impose a surcharge on a card holder who elects to use a credit or debit card in lieu of payment by cash, check or similar means.
Are Credit Card Surcharges Legal? If you're wondering if it is legal to charge credit card fees, the short answer is yes. The practice of surcharging was outlawed for several decades until 2013 when a class action lawsuit permitted merchants in several U.S. states to implement surcharges in their businesses.
Ten states prohibit credit card surcharges and convenience fees: California. Colorado. Connecticut. Florida. Kansas. Maine. Massachusetts. New York.
The Cardholder Agreement details the terms and conditions of your credit card account and includes information such as the rate, fees, and other cost information associated with the account.