Is it time to consider passing processing fees to your clients? Tech-Payments’ fully compliant surcharge program explained
For many businesses, card processing fees continue to rise—and so does the pressure on margins. A compliant surcharge program can offset credit card costs by passing a small, clearly disclosed fee to customers who choose credit (not debit), while protecting the checkout experience and staying within card-brand rules. Tech-Payments makes this simple and compliant from day one.
What is surcharging—and how is it different from debit?
A surcharge (also called a checkout fee) is a small fee added to credit card transactions. Card-brand rules prohibit surcharges on debit and prepaid cards—no matter how they’re run. With Tech-Payments, credit card customers may pay up to a 3.00% surcharge (Visa’s current U.S. cap), while debit customers pay nothing. On debit, the merchant pays a flat 1.00%—and that’s it with our pricing.
Compliance at a glance: what the card brands require
Before you can surcharge, you must notify the card brands and wait 30 days. Surcharging is allowed only on credit card transactions, must be capped at 3.00%, and requires clear disclosure at the point of entry, point of sale (and online), and on every receipt where the surcharge appears as a separate line item. Your terminal, POS or ecommerce system must be able to distinguish debit from credit and apply fees automatically & correctly every time.
You should also ensure your approach aligns with applicable state and federal requirements; historically, several states have restrictions (including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas). Non-compliance can trigger significant penalties and remediation—our program is designed to keep you aligned with the rules.
How Tech-Payments’ compliant surcharge program works
The good news is we handle registration with the card brands and your acquirer and manage the mandatory 30‑day waiting period so you know exactly when you can begin surcharging. Our team configures your terminals and gateways to automatically identify debit versus credit and apply the correct surcharge only to eligible credit transactions.
Receipts are formatted to show a separate surcharge line, and we supply compliant signage and disclosure templates for your door, checkout, and website. To keep your team consistent, we provide brief staff training and quick-reference FAQs. After launch, we monitor rule changes and update your setup, so your program stays compliant without extra effort on your part.
Simple, transparent pricing
On credit card transactions, the customer may pay up to a 3.00% surcharge. On debit transactions, the customer pays $0, and the merchant pays a flat 1.00%—no surprise add-ons with our pricing.
What you can’t do under card-brand rules
You cannot surcharge debit or prepaid transactions under any circumstance. You may not exceed a 3.00% surcharge on credit, begin before the 30‑day notice period is complete, or hide the surcharge—disclosure at entry, at checkout, and on the receipt is mandatory. You must also apply surcharging consistently.
Is surcharging right for your business?
Consider how a surcharge might affect your customer experience, how your competitors handle card costs, and your mix of credit versus debit transactions. Factor in your in‑store and online disclosure needs, staff readiness, and any state‑specific rules. Tech-Payments will help you model the impact, select the right configuration, and implement best practices that protect customer trust while reducing processing costs.
FAQs
Can I surcharge online and in-store? Yes. You can surcharge in both environments so long as you provide the required disclosures at the point of entry and point of sale (or online checkout) and list the surcharge as a separate line on every receipt.
What if I operate in multiple states? You can surcharge where it’s permitted and disable it where restricted. Because state rules can change, we recommend reviewing your locations with legal counsel; we’ll configure your setup accordingly.
How fast can I start? After we submit your registration to the card brands and your acquirer, you must wait 30 days before activating surcharging. We manage the timeline and confirm your go‑live date.
Get started with Tech-Payments
Ready to offset processing costs while staying compliant? Contact Tech-Payments for a brief consultation. We’ll review your locations, applicable terminal, POS, gateway setups, and timeline—then handle registration, configuration, signage, and training so you can launch with confidence.