Can you charge extra for using a credit card?

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Can you charge extra for using a credit card?

A company is allowed to charge their clients a credit card charge. However, there is a maze of exceptions, rules, and state laws as well for navigating to make sure that the customers are comfortable with the conditions of the merchant processing contract.

The operation of charging clients for a fee to shell out with their credit cards is referred commonly as the checkout charges, convenience charges, or surcharges. Every one of the available credit card brands has a somewhat different strategy concerning the subject.


What are the clear rules for credit card networks on credit card usage?

  • Visa allows for convenience charges, but, by and large, just when the reimbursement takes place athwart an alternate payment channel, for instance, online or by phone; when the client is notified of the charge in advance; and the merchant indicts a flat rate and not a proportion of the transaction itself.
  • MasterCard consents to educational institutions and government agencies to arraign a credit card convenience charge on condition that they put forward additional payment channels as well.
  • American Express agrees to convenience charges for particular kinds of transactions given that the use of the credit card by the customer is, in fact, a convenience. Every convenience charge must be divulged before the client is charged. Discover does not hold any such guidelines on credit card convenience charges. In its place, the issuer of the credit card only necessitates that the merchants take care of every credit cards in the same way; it treats all credit cards in the same manner. That denotes that the merchants cannot charge any convenience fee on the credit card transactions via Discover, save for the Visa transactions.

Frequently asked questions

Q. Are these charges different for different cards?
Yes, these charges can differ from card to card. The customer must make sure to read the details of their credit card provided by their issuer.
Q. Why is it called a convenience fee?
It is a convenience fee for the business receiving the credit card. Using the credit card by the company to accept any payments can make it more and more convenient for them to accrue further profits.
Q. What are convenience charges?
Convenience charges are levied for the concession of paying for an item or a service using an alternative reimbursement, or a payment technique, which is not typical for the merchant. For example, movie theaters classically sell their tickets in person at the box office.

Conversely, when the movie theater provides customers with the alternative opportunity of paying via the telephone with a credit card, then the theater may well charge a convenience charge. Hence technically, the customer is not paying for making use of the credit card itself, but for the advantage of employing the pay-by-phone choice.

Q. Are there any extra charges levied for debit cards too?
The convenience charges may also be levied on the transactions via debit card as these cards are often processed in the same way as the credit cards when they are used over the telephone, in payment kiosks, or online. The debit cards are processed only as debit, as opposed to the debit card system when the given PIN code is entered.
Q. How to keep away from legal convenience charges?
The only way out for consumers to avoid such legitimate convenience charges is to make payments using the standard paying channel or by stopping to patronize the merchants who indict these fees. Nevertheless, consumers must be on the lookout at all times for any surcharges by verifying their credit receipts and duly paying awareness in the checkout line.
Q. What to do when a wrong credit card charge is levied against a customer?
In any instance when a customer feels that he or she has been issued a wrong surcharge, they can easily contact their card issuer and furnish them with the location and name of the given merchant. If the customer lives in a state where the surcharges are against the law, he or she can get in touch with the Consumer Financial Protection Bureau.

Otherwise, report such violations by making use of the numbers on the back of the credit card, or submitting an online complaint.

Q. What Can You Do About such Convenience Fees?
If a business is levying an authorized credit card convenience charge, the consumers have only two distinct choices: to pay the charge or opt for a different payment scheme.

In a few cases, the customer may not be capable of avoiding the payment of a convenience charge, mainly if they do not hold a different payment method. While it is a bother, it is one that the customer may need to agree to now and then, for the suitability of using their credit cards. The fee will not catch the customer by surprise as the merchants are needed to let the customers know in advance that he or she will be levied a convenience charge.

Q. Does Swype Fast charge extra for using a credit card?
No, Swype Fast does not charge extra fees for using their credit cards.
Q. How soon can Swype Fast provide funding to the customers?
Swype Fast helps their customers to obtain their required business funding within forty-eight hours from $5,000-$1,000,000. Apart from this, they can also do away with most merchant processing fees of their clients.
Q. What are the specific rules to be followed by a credit card accepting merchant?
When merchants choose to bring credit card surcharges into play, they need to pursue a small number of rules:

  •    The existence of a surcharge should be disclosed clearly to the customer before any financial transaction.
  •    The surcharge on the credit card ought to be made known on the customer’s receipt.
  •    The surcharge cannot go beyond the sum that the retailer pays for or a 4% (customers need to pay the smaller of these 2, on average, 2-3%).

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