Understanding Surcharges

A surcharge is a fee assessed to credit card transactions by Merchants to their customers as an additional charge to cover specific costs associated with credit card processing.

Surcharges can cause legal complications if each requirement for compliance and registration is not met or the surcharge is not properly configured. The information provided in this guide will outline the steps to properly register and configure a surcharge (where allowed by law).

Getting Started

To begin surcharging you must follow the steps below:

Notify your Relationship Manager that you would like to start a surcharge program to begin setup of the Merchant Group.
The Payrix representative will enable the surcharge parameter allowing you to send the surcharge amount (required by Visa) with transactions.
1. Note: The surcharge parameter is for reporting purposes only so it does not have any effect on how the fees should be calculated.
Meet each Surcharge Program Setup Requirement.

After the surcharge function and parameter are enabled, set the surcharge collection workflow that works best with your business type. See Potential Surcharge Workflows below to view diagrams outlining other optional setups:

Potential Surcharge Workflows

Fee Config: Surcharge = Merchant Fees w/ Fee Scheduler

Fee Config: Surcharge = Merchant Fees w/ Fee Listener

Fee Conf: Merchant Fees > Surcharge w/ Fee Listener

Fee Config: Merchant Fees > Surcharge w/ Fee Scheduler

Fee Config: Merchant Fees > Surcharge w/ Interchange Plus

Tip: If you do not find a scenario that meets your needs, contact your Relationship Manager to further scope your request.

Responsibilities by Platform

Referrer Platform	Payrix Platform
Calculate the surcharge amount charged to the Merchant from a percentage (3%) into an integer (300) and add the amount to the `total` parameter for a given surcharged transaction. Pass the fee onto the customer on behalf of the Merchant.	Collect the surcharge fee paid by the credit card customer to the Merchant, from the Merchant transaction amount, on behalf of the Referrer using our Fees system.

Surcharge Program Setup Requirements

The use of a surcharge program can result in legal complications. As a result, it’s imperative to follow each of the compliance requirements below to adhere to card brand and state/local regulations.

Compliance Requirements

Surcharges are only permitted on credit cards; they cannot be assessed on debit cards.
Surcharges cannot be assessed in states where surcharges are prohibited by law.
The maximum recommended surcharge amount is 3% to adhere to Visa and Mastercard restrictions.
There must be a separate line item for the surcharge on the checkout page and receipt.
Merchants must disclose their full surcharge policy on their checkout page before transaction completion.

Card Brand & Acquirer Registration Requirements

Visa - The surcharge parameter must be used to notify Visa of a transaction surcharge through Payrix (via backend Field 28). Values populated in authorization and clearing(Field 28), Visa considers this to be a notification of the surcharge.
Mastercard - Registration and notification to Mastercard at least 30 days before surcharging.
Discover - No registration required.
American Express - No registration required.
Acquirer Registration – Payrix will enable the surcharge parameter, sending surcharging Merchants in a given group to the acquirer.

Note: The amount of the surcharge fee assessed on the cardholder does NOT have to match the amount of the fee assessed on the Merchant. This means that the cardholder could be assessed a 3% fee and the Merchant could be assessed a 3.50% fee.

Create a Surcharge in the Portal

Click here for steps to enable a Surcharge in the Portal and applied to a Group.

Step 1: Click GROUPS in the left-hand navigation panel to open the Groups page.
Step 2: Locate the group in the table and click on any information in the table row to open the Group Profile page.
Step 3: Click FEES in the list of tabs on the left-hand side of the page.
Step 4: Click the ADD FEE button in the upper right-hand corner of the page to open the Add Fee lightbox on the page.
Step 5: Click the When to Trigger the Fee? drop-down menu and select Capture.
Step 6: Click How Much is the Fee? down and select Surcharge.
Step 7: Set the Amount field to 3.00 (for 3%) or less.
Step 8: Set the Fee Start Date as today’s date.
Step 9: Name the Fee using an easy-to-find naming convention. Then, click Advanced Options.
Step 10: Enable the surcharge as a transaction fee by clicking the Transaction Fee box.
Step 11: Under the Conditional Rules dropdown, select Payment Card Type is, then select Credit from the available options.

Create a Surcharge via API

Click here for steps to enable a Surcharge with the API and applied to a Group.

1: Create the Surcharge.

Request URL & Header

CODE

POST /fees HTTP/1.1
Accept: application/json
Content-Type: application/json
Host: api-test.payrix.com
APIKEY:{{private_api_key}}

Example Request Body:

CODE

{
    "entity": "t1_ent_xxxxxxxxxxxxxxxxxxxxxxx",
    "forentity": "t1_ent_xxxxxxxxxxxxxxxxxxxxxxx",
    "org": "t1_org_xxxxxxxxxxxxxxxxxxxxxxx",
    "type": 1,
    "name": "3% Surcharge",
    "schedule": 7,
    "scheduleFactor": 1,
    "start": "{{CurrentDateTime}}",
    "um": 3,
    "amount": "300",
    "currency": "USD",
    "txnFee": 1
}

Add Fee Parameter	Required Value	Note
`type`	`1`	Fee. A Standard Fee.
`schedule`	`7`	Capture. The Fee is triggered at the time of credit card capture for a transaction.
`scheduleFactor`	`0`	No schedule factor is needed (`0`) as this is event-based.
`um`	`3`	Surcharge. The Fee is a percentage, specified in the `amount` field in basis points.
`amount`	`300`	The numerical fee amount, written in basis points to represent a percentage. (Example: `300` = 3.00%). Warning: When setting up a surcharge, do not exceed 3% to adhere with all credit card brand regulations.
`start`	{yourStartDate}	`YYYYMMDD` Format. It is recommended to use “today’s” date as the Fee Start Date to make the Fee effective immediately.
`currency`	`USD`	US Dollars.
`txnFee`	`1`	Enabled Transaction Fee
`collection`	`1`	Txn-Merchant. The total amount of all transactions per entity.
`collectionFactor`	`0`	No Collection Factor
`collectionOffset`	`0`	No Collection Offset
`inactive`	`0`	Active
`frozen`	`0`	Not Frozen

Example Response Body:

JSON

{
  "id": "t1_fee_xxxxxxxxxxxxxxxxxxxxxxx",
  "created": "2024-01-24T17:50:38.717Z",
  "modified": "2024-01-24T17:50:38.717Z",
  "creator": "t1_log_xxxxxxxxxxxxxxxxxxxxxxx",
  "modifier": "t1_log_xxxxxxxxxxxxxxxxxxxxxxx",
  "entity": "t1_ent_xxxxxxxxxxxxxxxxxxxxxxx",
  "forentity": "t1_ent_xxxxxxxxxxxxxxxxxxxxxxx",
  "org": "t1_org_xxxxxxxxxxxxxxxxxxxxxxx",
  "type": "1",
  "name": "3% Credit Card Surcharge",
  "schedule": "7",
  "scheduleFactor": 1,
  "start": "{{CurrentDateTime}}",
  "collection": "1",
  "collectionFactor": "1",
  "collectionOffset": "1",
  "um": "3",
  "amount": "300",
  "currency": "USD",
  "txnFee": "1",
  "inactive": "0",
  "frozen": "0"
}

Parameter	Type	Description	Expected Values
`id`	string	The ID of the newly created Fee.	Format: `t1_fee_x...`
`created`	string	The Date and Time that the Fee was created.	Format: `YYYY-MM-DDTHH:MM:SS.MS`
`modified`	string	The Date and Time that the Fee was last modified.	Format: `YYYY-MM-DDTHH:MM:SS.MS`
`creator`	string	The Login ID for the user that created the Fee.	Format: `t1_log_x...`
`modifier`	string	The Login ID for the user that last modified the Fee.	Format: `t1_log_x...`
`entity`	string	The entity ID for the entity the Fee is being applied to.	Format: `t1_ent_x...`
`org`	string	The Org ID for the group the Fee is being applied to.	Format: `t1_org_x...`
`type`	integer	The type of Fee being charged to the entity.	`1` - Fee. A Standard Fee.
`name`	string	Custom name for the Fee.	Recommended name: `3% Credit Card Surcharge`
`schedule`	integer	The Fee trigger.	`7` - Capture. The Fee triggers at the capture time of a Transaction.
`scheduleFactor`	string	A multiplier that you can use to adjust the schedule set in the 'schedule' field, if it is set to a duration-based trigger, such as daily, weekly, monthly, or annually. This field is specified in basis points and its value determines how the interval is multiplied.	0
`start`	string	The date that the Fee will take effect.	Today’s date. Format: `YYYYMMDD`
`collection`	integer	Applies the fee based on the volume of a resource.	`1` - Txn. The total amount of all transactions..
`collectionFactor`	integer	A multiplier that you can use to adjust the set of data to be used in the collection calculation. This field is specified in basis points and its value determines the period of time to be used.	`1` Format: `2.00` = 2x multiplier.
`collectionIncludeCurrent`		Whether to include the current period for the colleciton calculation.	`1` - Don’t inlcude
`um`	integer	The unit of measure for this Fee.	`3` - Surcharge. The Fee is a percentage of the related event amount as a surcharge.
`amount`	string	The amount of the fee by unit of measurement (`um`)	`300` - 3% Surcharge
`currency`	string	The three-digit symbol for the currency that the Fee will be charged and collected in.	`USD` - US Dollars
`txnFee`	integer	Indicator to extract fee from txn supplied fee. When set, amount will correspond to the fee amount in the txn and only that amount will be extractable, anything over that amount will not be extracted.	`1` - Enabled. Fee will be calculated based on transaction fee.
`inactive`	integer	Whether or not this fee is active.	`0` - Active
`frozen`	integer	Whether or not this fee is temporarily frozen.	`0` - Not frozen

2: Add the Credit-Only Fee Rule

Request URL & Header

CODE

POST /feeRules HTTP/1.1
Accept: application/json
Content-Type: application/json
Host: api-test.payrix.com
APIKEY:{{private_api_key}}

Example Request Body:

JSON

{
  "fee": "t1_fee_xxxxxxxxxxxxxxxxxxxxxxx",
  "name": "Credit-Only Surcharge Rule",
  "description": "Only allows surcharging on credit cards.",
  "type": "methodType",
  "application": "both",
  "value": "credit",
  "inactive": "0",
  "frozen": "0"
}

Parameter	Type	Required	Descriptions	Required Value
`fee`	string	Required	The Fee ID for the Fee you want to apply the Fee Rule to.	Fee ID from Step 1 response body. Format:`t1_fee_x....`
`name`	string	Optional	Custom name for the Fee Rule for easy identification.	Recommended name: `Credit-Only Surcharge Rule`
`description`	string	Optional	Custom description for the Fee Rule for clarification.	Recommended description: `Only allows surcharging on credit cards.`
`type`	string	Required	The type of rule you’ll be applying to the specified Fee.	`methodType` - Method type. The Fee applies based on the given payment method.
`application`	string	Required	When this Fee Rule will be applied.	`both` - Both. The rule should apply to the fee and to the calculation of collections.
value	string	Required		credit
`inactive`	integer	Required	Whether or not this Fee Rule is inactive.	`0` - Active.
`frozen`	integer	Required	Whether or not this Fee Rule has been frozen.	`0` - Not frozen.

Example Response Body:

JSON

{
      "id": "t1_frl_xxxxxxxxxxxxxxxxxxxxxxx",
      "created": "2024-01-24T17:50:38.717Z",
      "modified": "2024-01-24T17:50:38.717Z",
      "creator": "t1_log_xxxxxxxxxxxxxxxxxxxxxxx",
      "modifier": "t1_log_xxxxxxxxxxxxxxxxxxxxxxx",
      "fee": "t1_fee_xxxxxxxxxxxxxxxxxxxxxxx",
      "name": "Credit-Only Surcharge Rule",
      "description": "Only allows surcharging on credit cards.",
      "type": "methodType",
      "application": "both",
      "value": "credit",
      "inactive": "0",
      "frozen": "0",
    }

Parameter	Type	Description	Expected Values
`id`	string	The ID of the newly created Fee Rule.	Format: `t1_frl_x...`
`created`	string	The Date and Time that the Fee Rule was created.	Format: `YYYY-MM-DDTHH:MM:SS.MS`
`modified`	string	The Date and Time that the Fee Rule was last modified.	Format: `YYYY-MM-DDTHH:MM:SS.MS`
`creator`	string	The Login ID for the user that created the Fee Rule.	Format: `t1_log_x...`
`modifier`	string	The Login ID for the user that last modified the Fee Rule.	Format: `t1_log_x...`
`name`	string	Custom name for the Fee Rule for easy identification.
`description`	string	Custom description for the Fee Rule for clarification.
`type`	string	The type of rule you’ll be applying to the specified Fee.	`methodType` Method type. The Fee applies based on the given payment method.
`application`	string	When this Fee Rule will be applied.	`both` Both. The rule should apply to the fee and to the calculation of collections.
`value`	string	This field refers to either the numerical amount for `type` parameter selections that require an amount.	`credit` Credit Card. The fee rule will only apply when the payment `methodType` is credit.
`inactive`	integer	Whether or not this Fee Rule is inactive.	`0` - Active
`frozen`	integer	Whether or not this Fee Rule has been frozen.	`0` - Not Frozen

Applying a Surcharge through a Transaction

Click here for methods to apply a surcharge through the transaction API and Portal

After your fee and fee rule have been enabled using the Portal or API, you can apply the Surcharge using one of the following methods:

1: Separate Transaction & Surcharge Calculation: POST /txns

This process directly calculates the fee amount, ensuring the amount is 100% of the value provided in the fee parameter.

Step 1: In the fee parameter, enter the calculated surcharge amount (3% of the transaction total)

Step 2: In the total parameter, enter the original transaction total, plus the surcharge total.

Example: 3% Surcharge for $100 original transaction total = $103.00 total amount.

Step 3: Using the Portal, create a fee or adjust the existing surcharge fee with the following values:

Add Fee Parameter	Required Value	Note
When to trigger the fee?	Capture	The Fee triggers at the capture time of a Transaction.
How much is the fee?	Percentage
Amount	100%	100% of the amount of the value sent using the `fee` parameter for `POST /txns`. Fomatted as `10000`.
Fee Start Date	{yourStartDate}	It is recommended to use “today’s” date as the Fee Start Date to make the Fee effective immediately.
Transaction Fee	Enabled	Checkbox available under the “Advanced Options” section of the lightbox.

Example Transaction:

CODE

{
  "allowPartial": "0",
  "debtRepayment": "0",
  "origin": "1",
  "platform": "VCORE",
  "type": "1",
  "currency": "USD",
  "fundingCurrency": "USD",
  "unattended": "0",
  "payment": {
    "method": 0
  }
  "fee": "300",
  "total": "10300"
}

2: Combined Transaction & Surcharge Calculation: POST /txns

This process reverse-calculates the fee amount, ensuring that the 3% is calculated from the transaction amount alone, rather than the transaction amount + surcharge amount together.

Step 1: In the fee parameter, enter the calculated surcharge amount (3% of the transaction total)
Step 2: In the surcharge parameter, enter the calculated surcharge amount (3% of the transaction total)
Step 3: In the total parameter, enter the original transaction total, plus the surcharge total.
Step 3: Using the Portal, create a fee with the following values:

Add Fee Parameter	Required Value	Note
When to trigger the fee?	Capture	The Fee triggers at the capture time of a Transaction.
How much is the fee?	Surcharge
Amount	3%	3% of the pre-caluclated transaction amount as shown of the value sent using the `fee` and `surcharge` parameters for `POST /txns`. Fomatted as `300`
Fee Start Date	{yourStartDate}	It is recommended to use “today’s” date as the Fee Start Date to make the Fee effective immediately.
Transaction Fee	Enabled	Checkbox available under the “Advanced Options” section of the lightbox.

Example Transaction:

CODE

{
  "allowPartial": "0",
  "debtRepayment": "0",
  "origin": "1",
  "platform": "VCORE",
  "type": "1",
  "currency": "USD",
  "fundingCurrency": "USD",
  "unattended": "0",
  "payment": {
    "method": 0
  }
  "fee": "300",
  "surcharge": "300",
  "total": "10300"
}

Apply a Surcharge through a PayFields Token

As PayFields does not currently offer a direct connection to the surcharge parameter available through the /txns endpoint, a workaround is to tokenize the payment method only using PayFields, then create a subsequent POST /txns API request using the new token as the payment method with the Surcharge applied.

Click here for steps to apply a Surcharge to PayFields transactions.

In the following scenario, we are applying a 3% surcharge for credit card payments.

Step 1: Create your payment page through PayFields like normal, using the following parameters to create a new payment token from payment methods submitted by customers:

JAVA

PayFields.config.amount = '0'
PayFields.config.mode ='token'
PayFields.config.txnType = 'capture'

Tip: Be sure to include your Surcharge policy clearly for customers to see before completing their transactions.

Step 2: When a transaction is created, PayFields are configured to automatically tokenize the payment method (see the code snippet example below) when a transaction is submitted. Locate the token value in the response data for the transaction.

For this example, we’ll use $100 as the amount for the initial transaction total.

Example Token: 123abc456defxxxxxxxxxxxxxxxxx
Example PayField Tokenization:

Step 3: Make a request to the following endpoint:

CODE

GET /tokens&expand[payment][bin][]?token[equals]={Your Payfields Response Token} HTTP/1.1
Accept: application/json
Host: api-test.payrix.com
Content-Type: application/json
APIKEY:{{private_api_key}}

Example Request URL:

CODE

GET https://api-test.payrix.com/tokens&expand[payment][bin][]?token[equals]=123abc456defxxxxxxxxxxxxxxxxx

Step 4: In the response body, locate the payment method type via the method and type parameter.

The method parameter must be 1, 2, 3, 4, or 5.
The type parameter should display as credit.

If the method and type indicate Credit as the payment type continue to Step 5. If the method and type indicate debit, jump to Debit Card Payment Method Handling Options for instructions for routing the potential fee.

Example Response:

JSON

{
  "payment": {
      "bin": {
          "bin": "123456",
          "method": 2,
          "type": "credit",
          "name": "BIG BANK USA",
          "country": null,
          "website": null,
          "phone": null,
          "address": null,
          "city": null,
          "state": null,
          "zip": null,
          "locationType": null,
          "newBin": null,
          "category": null,
          "transferEnabled": 0,
          "numberLength": null,
          "debitOverCreditEnabled": 0,
          "billPayEnabled": 0,
          "pinlessSupport": null
      },
      "id": "abc123def456hij78",
      "method": 2,
      "number": "1234567891011213",
      "routing": "0",
      "payment": null,
      "lastChecked": null,
      "last4": 1213,
      "mask": null
  },
  "id": "t1_tok_xxxxxxxxxxxxxxxxxx",
  "created": "2024-01-25 12:11:32.8155",
  "modified": "2024-01-25 12:11:32.8155",
  "creator": "t1_log_xxxxxxxxxxxxxxxxxx",
  "modifier": "t1_log_xxxxxxxxxxxxxxxxxx",
  "customer": "t1_cus_xxxxxxxxxxxxxxxxxx",
  "token": "123abc456defxxxxxxxxxxxxxxxxx",
  "expiration": "0123",
  "inactive": 0,
  "frozen": 0,
  "name": null,
  "description": null,
  "custom": null,
  "authTokenCustomer": null,
  "status": "ready",
  "type": "internal",
  "internalToken": null
  },

Step 5: Once the method and type have been verified as a credit card payment, make a request to the following endpoint to create the credit card capture transaction and apply the 3% surcharge to the original transaction amount:

CODE

POST /txns HTTP/1.1
Accept: application/json
Host: api-test.payrix.com
Content-Type: application/json
APIKEY:{{private_api_key}}

Example Request Body:

JSON

{
    "merchant": "{{Merchant_id}}",
    "type": 1,
    "origin" : "2",
    "token": "{{tokenFromPayFieldsResponse}}",
    "fee": "300",
    "surcharge": "300",
    "total" : 10300
}

Result: Your PayFields payment page credit card transaction has now been properly assessed the surcharge from the tokenized credit card and the Merchant has been assessed the surcharge through their Referrer.

Debit Card Handling

You can handle this compliance rule by querying our /tokens endpoint to determine if the card is credit or debit. If it is debit then you can handle this in a few ways:

Debit Card Payment Method Handling Options

If during your review of the customer’s payment token, you discover that the payment method is a debit card, you can utilize one of the following options to proceed as surcharges cannot be applied to debit card transactions:

Create a separate fee for debit-only transactions.
- Do not charge the cardholder any surcharge fee or pass any value in the fee field.
- With this option, the Merchant would have to cover the fee amount that you set up in Payrix.
Send a POST /txns endpoint request with a set fee parameter.
- Do not charge the cardholder any surcharge fee,
- Pass a fee amount in the fee field.
- With this option, the Merchant would have to cover the fee amount that you pass.
Flag an alert to the cardholder on the checkout page saying that they need to enter a different card.
- With this option, the Merchant avoids paying a fee.

Option 1: Create a separate fee for debit-only transactions.

CODE

POST /txns HTTP/1.1
Accept: application/json
Host: api-test.payrix.com
Content-Type: application/json
APIKEY:{{private_api_key}}

Example Request Body - Debit Cardholder Transaction:

JSON

{
    "merchant": "{{Merchant_id}}",
    "type": "1",
    "origin": "2",
    "token": "{{tokenFromPayFieldsResponse}}",
    "total": "10000"
}

Result: Customer is not assessed a surcharge or fee for using a debit card. The Merchant is charged a fee for processing the debit card from the Referrer.

Option 2: Send a `POST /txns` endpoint request with a set `fee` parameter.

CODE

POST /txns HTTP/1.1
Accept: application/json
Host: api-test.payrix.com
Content-Type: application/json
APIKEY:{{private_api_key}}

Example Request Body - Debit Cardholder Transaction:

JSON

{
    "merchant": "{{Merchant_id}}",
    "type": "1",
    "origin": "2",
    "token": "{{tokenFromPayFieldsResponse}}",
    "total": "10000",
    "fee": "300"
}

Result: The Customer is not assessed a surcharge or fee for using a debit card. The fee value is passed with the transaction however and the Merchant’s transaction total is deducted to cover the fee.

Option 3: Create a checkout page alert to enter a different, valid credit card.

Build a basic logic for your payment page to inform customers upon input of their card information that a credit card is required for the transaction:

Example JavaScript Flag Alert:

JS

function checkCardType() {
    var cardTypeInput = document.getElementById("cardType").value.toLowerCase();
    if (cardTypeInput === "debit") {
        alert("Please Note: Credit card required for this transaction.");
    } else {
          alert("Invalid card type. Please enter a valid credit card.")
    }
}

Result: The customer will be prompted to enter a credit card instead of a debit card. This will prevent the Merchant from paying a surcharge or fee altogether.

Comparing Surcharges, Convenience Fees, and Service Fees

As the following fee types are similar in setup and collection process, it’s important to understand the differences between them to avoid legal complications and possible chargebacks.

Surcharges

Surcharges, or Surcharge Fees, as mentioned earlier, are specifically designed for credit card-only transactions at all times. These types of fees are inclusive of all credit card transactions under a Merchant or Group and can be applied consistently as long as card brand and legal requirements are met.

Example: A Merchant offers cash, debit, or credit as a payment options to their customers. To help offset the costs of credit card processing, the Referrer applies a 3% surcharge to the Merchant for credit card transactions, and in turn, allows the Merchant to collect the surcharge directly from the consumer at checkout through their platform offering.

Convenience Fees

Convenience Fees are fee charges passed on to customers for the ability to pay for a product or service using an alternative payment method that is not standard for a business.

Example: A Merchant can state that they traditionally accept cash or check only, and offer the convenience of paying with a “non-traditional” method (credit card) which the Referrer collects and keeps or profit shares with the Merchant. This fee can also be collected directly from the consumer at checkout through the Referrer’s platform offering.

Generally, a convenience fee cannot be implemented in in-person settings (such as physical card terminals) – typically this refers to Internet and over-the-phone transactions.

Service Fees

Service Fees are actually a type of convenience fee that comes with specific rules and regulations resulting from certain limited qualifying MCCs, as opposed to a general convenience fee mentioned above where the fee can be assessed generally for alternative payment method usage. For comparison, we will classify Service Fees under Convenience Fees.

Example: A Merchant who operates a business classified as MCC 8220 (Colleges, Universities, etc.) processes a card payment. The associated interchange and processing fees are debited directly from their Referrer’s operating account. Then associated fee costs are reimbursed to the Referrer’s platform account through a 100% withdrawal of the Merchant’s entire transaction amount and fee cost.

Conclusion

While both Convenience Fees and Surcharges are similar in their setup and collection processes, there are important legal and compliance distinctions as well as different requirements for when each fee type can be applied.

Convenience Fees

Allowed only on Card-Not-Present transactions.
Applies to alternative payment methods from the Merchant’s standard payment options.
The fee is a flat or fixed amount.
Applicable to credit and signature debit.
Disclosed before the completion of the transaction and the cardholder is allowed to cancel.
Included as part of the total sale.
Allowed on credit and signature debit.

The Convenience Fee requirements listed here are based on Visa’s rules, as they are the strictest. Other rules apply if accepting only MC and AMEX

Surcharges

Allowed on Card-Not-Present and Card-Present transactions.
Applicable only to credit cards, not debit.
The fee is a percentage of the sale.
Cardholder Disclosure of Surcharge policy required.
Disclosed before the completion of the transaction and the cardholder is allowed to cancel.
Included as part of the total sale.
30 days notice must be provided to the Mastercard card brand network, Payrix and/or the acquiring bank before starting to surcharge.
Merchants must complete registration directly with Mastercard.
Surcharges are prohibited in some states.

Surcharges & convenience fees cannot be applied on the same payment.

References

Mastercard Surcharge Disclosure Form - Registration

Getting Started

Responsibilities by Platform

Surcharge Program Setup Requirements

Create a Surcharge in the Portal

Create a Surcharge via API

1: Create the Surcharge.

2: Add the Credit-Only Fee Rule

Applying a Surcharge through a Transaction

1: Separate Transaction & Surcharge Calculation: POST /txns

2: Combined Transaction & Surcharge Calculation: POST /txns

Apply a Surcharge through a PayFields Token

Debit Card Handling

Option 1: Create a separate fee for debit-only transactions.

Option 2: Send a POST /txns endpoint request with a set fee parameter.

Option 3: Create a checkout page alert to enter a different, valid credit card.

Comparing Surcharges, Convenience Fees, and Service Fees

Surcharges

Convenience Fees

Service Fees

Conclusion

References

Option 2: Send a `POST /txns` endpoint request with a set `fee` parameter.