EBizCharge

JUNE 27, 2025

The customer pays the full transaction amount, including the fee, and the business receives the base sale amount, effectively eliminating payment processing costs from their side. It’s worth noting that while many payment processing solutions now support no-cost credit card processing, not all do so in a compliant way.

Credit Cards

EBizCharge

JUNE 26, 2025

Set Your Surcharge Rate Find a solution that will automatically calculate and apply the correct legal surcharge rate, such as EBizCharge Ensure the system adjusts for varying card processing costs and stays within the 4% cap 5. Be sure to implement each component of a compliant surcharge program with care and transparency.

Best Practices

Cardfellow

JULY 31, 2025

Subscription pricing is becoming more popular as businesses try to find ways to cut credit card processing costs. Subscription flat rate pricing is available from some processors in the CardFellow marketplace and overall it’s a transparent model with the ability to be low cost.

Accounts

EBizCharge

JUNE 27, 2025

If you’re a business owner dealing with rising credit card processing costs, this is for you. It’s a way for businesses to recover part or all of the processing fees they would otherwise absorb. Here are the key rules: Maximum credit card surcharges are capped at 2.4% Can I surcharge in Canada? of the transaction amount.

Credit Cards

Clearly Payments

JULY 22, 2025

Costs of Processing for High-Risk Merchants High-risk merchants pay significantly more to accept payments compared to standard businesses. These elevated costs stem from higher reserve requirements, higher chargeback fees, and the increased cost of risk underwriting. per transaction) 3.5% – 8.5% (plus $0.10 -$0.75

Risk

EBizCharge

JUNE 24, 2025

Understanding those differences can help you avoid compliance headaches, improve the customer experience, and recover more of what you’re losing to payment processing costs. Most card networks cap surcharges at 3% (or less in some regions), and you should never exceed your actual credit card processing fees.

Credit Cards

EBizCharge

JUNE 25, 2025

Safeguarding Your Business with Proper Surcharge Practices Surcharging can help your business manage processing costs, but only if it’s done by the book. Each card brand—Visa, Mastercard, American Express, Discover—has its own surcharge guidelines. Small oversights can create big risks.

Compliance

EBizCharge

JUNE 24, 2025

Others allow it but require specific steps like formal notification, prescribed signage, or capped surcharge amounts. For example: “A 3% surcharge is applied to credit card purchases to help offset credit card processing costs.” The legality of surcharging depends heavily on where your business operates.

Credit Cards

EBizCharge

JULY 3, 2025

The major card networks—like Visa and Mastercard—have their own guidelines, such as requiring upfront customer notifications and limiting the surcharge amount (usually capped at 3%). These steps help ensure the process is both transparent and legal. This includes customer notifications and fee caps.

Credit Cards

EBizCharge

JUNE 23, 2025

The card networks generally allow surcharges, but they require strict disclosures and cap the fee you can charge. The courts have generally sided with merchants who argue they should be able to recoup processing costs. Getting this wrong can cost you. And while some states have lifted their bans, others still hold firm.

Credit Cards

EBizCharge

JUNE 23, 2025

The goal is to cover the processing fees that come with accepting those payments. Card networks typically cap it at 4%, and you can’t apply it to debit or cash payments. Handled properly, surcharging can be a smart, compliant way to manage processing costs. It won’t warn you if you exceed the card brand’s 4% cap either.

Credit Cards

EBizCharge

MAY 5, 2025

Additionally, credit card networks typically cap surcharge amounts around 3-4% of the transaction total, and merchants must notify the card brands prior to adding a surcharge. This incentivizes businesses to promote ACH payments as a cost-saving option for them and their customers. Is zero cost credit card processing actually free?

Credit Cards

Nanonets

NOVEMBER 23, 2024

While its free mobile app and API integration make it flexible for many users, its limitations, such as a 15-page processing cap and strict API rate limits, can hinder large scale document processing.  Fast processing: Reduces time per page from minutes to seconds. Cost savings: Cuts 30%+ on manual processing costs.

Multi-Currency

Clearly Payments

AUGUST 14, 2024

North American payment processing fees are the highest in the world due to a combination of factors, including high interchange rates , which can exceed 2% per transaction, and the dominance of major card networks like Visa and Mastercard that control over 80% of the market. Unlike Europe, where interchange fees are capped at 0.3%

Process

Stax

DECEMBER 20, 2023

This article explores the legal landscape surrounding surcharges, shedding light on the intricacies of state and federal laws and strategies for small businesses to manage processing costs. Businesses can encourage cash transactions or use credit card surcharging as an additional fee to offset payment processing costs.

Debit Card

Stax

JANUARY 24, 2024

However, the idea of applying a credit card surcharge to offset the processing cost of credit cards has always been a hotly debated topic. Simply put, a surcharge amount is an extra fee that some merchants choose to levy on customers to cover the costs of processing credit card payments.

Credit Cards

Stax

JANUARY 24, 2024

However, the idea of applying a credit card surcharge to offset the processing cost of credit cards has always been a hotly debated topic. Simply put, a surcharge amount is an extra fee that some merchants choose to levy on customers to cover the costs of processing credit card payments.

Credit Cards

Stax

AUGUST 1, 2024

charge interchange fees which, on top of other credit card processing fees, can eat away at your profits. As such, credit card surcharging can be beneficial for offsetting these costs. With it, merchants can transfer the processing costs to customers who choose to make credit card payments.

Rules

Stax

SEPTEMBER 26, 2024

It requires stringent adherence to regulatory guidelines and card network rules, from surcharge caps to disclosure requirements. Some states cap the surcharge rate to a set rate or dollar amount. 22% of businesses implement surcharging to offset credit card processing fees.

Credit Cards

Stax

DECEMBER 20, 2023

Interchange fees are simply a cost of doing business. Understanding the concept of interchange fees is crucial for businesses looking to optimize their payment processing costs. At the end of the day, how much you’re paying for credit card processing relies on your payment solutions provider. How Much Do You Pay?

Credit Cards

Stax

FEBRUARY 28, 2024

Customers who want to use their credit card have to pay an additional fee covering the processing costs. For anyone new to the term, surcharging is a payment processing option allowing merchants to pass on credit card fees. Customers who want to use their credit card have to pay an additional fee covering the processing costs.

Credit Cards

Stax

DECEMBER 6, 2023

This additional fee is intended to cover the costs associated with processing credit card payments. Businesses that choose to add surcharges can either charge a fixed flat fee or a percentage of the transaction amount with a cap on the total. There may also be caps or regulations on these fees depending on local laws.

Consumer

Stax

NOVEMBER 8, 2023

Your business still has to incur all processing costs when a customer pays by debit card. The latter is simply another solution that some merchants use to lower their card processing costs. In this method, a certain discount (equivalent to the cost of card processing) is applied at checkout if a customer pays by cash.

Process

Stax

DECEMBER 13, 2023

TL;DR Credit card processing fees can add up quickly and eat into a business’s bottom line. Fortunately, in states where surcharging is legal, you can recoup these processing costs by transferring them to the cardholder. All of these credit card processing fees can add up quickly and eat into a business’s bottom line.

Credit Cards

Stax

MARCH 14, 2024

It’s also cost-effective. ACH payments take up to three days to process and cost around 1% of the transaction with a $10 cap. On the merchant side, B2B cards come with lower processing rates if you qualify for level 2 and level 3 card processing. Q: How do B2B and B2C credit processing costs differ?

B2B

Stax

APRIL 4, 2024

The surcharge fee is paid by the customer and helps offset the processing cost for that particular transaction. The surcharge fee is paid by the customer and helps offset the processing cost for that particular transaction. China has capped the additional fees incurred by consumers at 0.45% of the transaction amount.

Credit Cards

EBizCharge

JULY 25, 2024

These fees are intended to cover the cost associated with credit card processing fees, which merchants pay to credit card companies such as Visa, MasterCard, or American Express for each transaction. Traditionally, businesses absorb credit card processing costs, but with surcharging, they pass the fees directly to consumers.

Best Practices

Stax

JANUARY 31, 2024

Switch the above to card-not present and it’s 0.65% +$0.15, with a $2 cap Comparison with previous years According to the Wall Street Journal , the fee increases are going to largely target online transactions. For retail Visa debit card present, an exempt Visa check card will run 0.08% +$0.15

Credit Cards

EBizCharge

JUNE 28, 2024

Credit card networks impose a cap on surcharges, typically restricting them to no more than the merchant’s cost to process credit card transactions or up to 3%, whichever is lower. Consequently, merchants cannot profit from these fees; their purpose is solely to cover processing costs.

Credit Cards

Cardfellow

MARCH 30, 2025

But if you just want a quick overview, here it is: Interchange is one of the three core components of credit card processing costs. Regulated debit interchange is capped at a fixed amount (0.05% + 21 cents per transaction) regardless of other factors. Along with assessments and processors markup.)

Visa

Nanonets

FEBRUARY 21, 2024

Dramatic Cost Reductions in Processing Let's start with the financial health of your department.    AP Automation has been shown to slash processing costs by a staggering 70%.  This Change case Change text to uppercase/lowercase or all caps. Convert to integer Remove decimal places from numbers.

Automation

Fintech Labs Insights

JANUARY 17, 2025

transaction fees to cover interchange and other variable processing costs. Bill.com (see also #13 Invoice2Go) FAB Score = 842 ( down 120 ) HQ: San Francisco Bay Area Founded: 2006 Raised $496M including $216M in its Dec 2019 IPO ( Crunchbase ) Annual revenue (TTM): $1.2B ( Yahoo ) Market Cap: $5.1B ( NYSE:BILL 15 Aug 24) down $3.3B

Small Business

Segpay

FEBRUARY 28, 2024

Key Takeaways √ Hidden charges in payment processing can dig into and erode your bottom line. Merchants can implement several best practices to avoid surprise processing costs. 5 minute read Hidden charges in payment processing can seriously impact any merchant’s bottom-line revenues.

IRS