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Get paid an average of 36% faster with the only AR automation and digital invoicing platform built for B2B companies. Features like automated workflows, customer collaboration, AutoPay, auto reconciliation, and enhanced data analytics reduce manual work and ensure on-time payments—every time.

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Payment-ready digital invoices simplify your process, get you paid faster, and strengthen your relationship with customers.
AVOID COSTLY PENALTIES

Credit Card Surcharging Guide

Credit card surcharging can reduce costs by sharing processing fees with your customers when they pay with credit cards.

If you choose to surcharge, it is essential you do so in full compliance with rules and regulations. Failure to do so may result in costly fines, termination from card networks, and damage to your company's reputation.

We encourage you to review Visa's®, Mastercard's®, and the other card brand's rules.

Surcharging FAQs:

What is credit card surcharging?

Surcharging lets companies share the cost of accepting credit cards with their customers. There are strict rules set and enforced by the card networks, state laws, and federal regulatory agencies.

 
Am I allowed to surcharge?

Not every state allows surcharging, so you must know where it’s prohibited and where it’s permitted. It’s a good idea to check with the State Attorney’s office or your legal council.
Is surcharging limited to credit cards? Yes. Surcharging debit cards is prohibited by various regulations.
How much can I surcharge? Surcharging caps are determined by state laws, card networks, and the locations of the merchant and the customer. Applying the correct percentage is nearly impossible without automation that considers relevant rules, regulations, and laws.
Do I have to let my customers know about surcharging? Yes. Surcharges must be disclosed to customers before the transaction and listed as a separate line item on receipts and invoices. At physical, brick-and-mortar stores, signs explaining surcharging are required at the entrance and the checkout counter. Online businesses need to disclose surcharging on the website’s checkout page. For phone orders, surcharges must be disclosed verbally.
Besides my customers, who else do I have to inform I’m offering surcharging?

Your payment processor and relevant card networks need to be notified prior to surcharging.

If you're using Bill360, we pre-register you with all necessary parties so you have one less thing to worry about.
Are there penalties if I am not in compliance?

In any Merchant Agreement, you agree to follow the complex rules set and enforced by the card networks, state laws, and federal regulatory agencies. Non-compliance can bring serious consequences including fines, frequent chargebacks, legal exposure, reputational damage, and payments blacklisting.
What’s the difference between a surcharge and a convenience fee?

Unlike a surcharge, a convenience fee is a flat charge typically for using a non-standard payment channel.
Who creates surcharging rules?

Rules, regulations, and laws are created and enforced by the card networks, individual states, and federal departments.
Do state-specific laws apply to buyers or sellers?

Surcharging legality can be based both on the merchant (seller) and cardholder (buyer) locations.
What if my customers do not want to be surcharged?

Offer other payment options, such as ACH, so your customers can choose the options best for them.
Why is maintaining compliance manually for credit card surcharging so complex?

Rules vary across card networks, state laws, and federal regulations, and all must be followed simultaneously. Rates, card type eligibility, disclosure requirements, and even legality can change based on the buyer’s location or seller’s location, and the issuing bank. Compliance for credit card surcharging is nearly impossible without automation.

How Bill360 helps.

We work with you to deploy a low-friction, high-return automated compliant surcharging strategy. Our certified solution was built to help B2B companies automate their surcharging process.

 

 

Bill360 Automated Compliant Surcharging

Penalties for incorrect surcharging.

How much are fines for incorrect surcharging?
Fines from the card networks to the business owner can be up to $1,000 per violation. Banks and payment providers may also be fined, and those fines are typically also passed to the business. Businesses may also have to pay lawyers or accountants to help review and stop additional fines.
Can I lose my ability to accept credit cards?
Potentially. Compliance violations can land a business on the MATCH list — essentially a payments blacklisting. If the business accepts credit cards, this can have a significant impact to their bottom line.
Can bad surcharging practices lead to chargebacks?
Yes. When customers feel surprised or overcharged, they’re far more likely to challenge transactions. Not disclosing surcharging fees upfront, charging ineligible cards, or exceeding allowed limits can lead to disputes and “incorrect amount” claims, creating more chargebacks.
What’s the reputational risk of non-compliant surcharging?

If your customers feel deceived by poor surcharging practices, the damage can extend well beyond that one relationship. The potential backlash could hurt your reputation online, in reviews, and in the industry.

 
What is the MATCH List?

The Merchant Alert to Control High-Risk (MATCH) list alerts banks to companies that have a history of non-compliant payment practices. Once a business has been placed on the MATCH list it is very difficult to accept payments.

Maximize margin, minimize risk.

Let us help automate your surcharging process so you can scale with confidence.
Talk with an expert

This is not legal advice; contact your lawyer for additional guidance. Surcharging compliance is complex. Bill360's Surcharging Functionality must be used in a compliant manner. For further restrictions and guidance on how to use our Surcharging Functionality in a fully-compliant manner, please review the applicable rules and regulations of Visa®, MasterCard® and the other payment brands.

* Subject to seller and buyer location, card networks rules, state laws, and federal oversight.