This ban on excessive payment surcharges applies to: Whatever the surcharge amount, the business must be able to prove the costs they used to calculate it.įees that aren’t called surcharges, but really areĪ business can’t escape the ban by calling a payment surcharge something else.įor example, if a business charges a service fee or handling fee that only applies to some payment methods, this is probably a payment surcharge by another name, so the ban on excessive surcharges applies. Small businesses usually have higher processing costs than large businesses. How much it costs a business to process a payment depends on the size of the business, the technology used, and the payment method. For example, if a business pays an amount for gateway fees for processing credit card transactions only, the business cannot include this cost in its debit card transactions.
Others pass the costs on as aĬertain rules apply when a business applies a Some businesses include these costs in the prices they charge for their products. Ban on excessive payment surcharges About the ban on excessive surchargesīusinesses incur costs for processing certain card payment types.
