Q: Why can’t I charge more than 3%?
A: In the United States, the maximum surcharge allowed is 3%, as established by card brand rules (Visa, Mastercard, Discover, and American Express) and federal regulations. Card networks cap surcharges at the lesser of 3% or your actual cost of acceptance.
If you’re located in Canada, the maximum allowable surcharge is 2.4%.
These limits are in place to protect consumers and to promote fair, consistent practices across all businesses that accept card payments.
We strongly encourage you to check your local laws and card brand regulations to ensure you’re compliant with the rules specific to your region.
Staying within these limits helps protect your business from potential fines, compliance violations, or the loss of your ability to process card payments.
Q: Why can processors charge me more than 3% in processing fees if I can’t pass that same amount to my customers?
A: Processing fees include the costs of securely processing transactions, maintaining compliance, managing risk, and covering interchange fees charged by banks and card networks.
The 3% limit applies only to what merchants can pass to their customers, not to the fees charged between businesses (like between your business and your payment processor).
In other words:
The 3% rule (or 2.4% in Canada) is designed to protect consumers, not business-to-business transactions.
Card brands regulate how much you can charge your customers, but they do not regulate what processors can charge merchants.
This ensures fairness for cardholders while still allowing processors to set rates that reflect the costs and services involved in safely managing payment transactions.
Q: I’ve been charging my customers the exact cost to cover my processing fees. Why is that no longer available?
A: Previously, our system gave you the flexibility to do that, but it didn’t ensure full compliance with all card brands and federal and state laws. As compliance enforcement has increased, we’re updating our tools to keep you protected and in line with the latest regulations.
The new surcharging tool automatically caps at 3% and manages the reporting and setup rules required by the card brands, so you don’t have to.
Q: What happens if I charge more than 3% anyway?
A: Doing so could result in:
Fines from card networks (which can be substantial)
Loss of your ability to process cards
Damage to your merchant reputation or risk profile
We’ve built the new system to prevent that from happening, keeping your business safe and compliant automatically.
Q: How does this protect my business?
A: By following card brand rules, you:
Stay in good standing with Visa, Mastercard, and others
Avoid unexpected penalties or compliance audits
Build trust with your customers through transparent pricing
Keep your payment processing uninterrupted and worry-free
Our goal isn’t to limit your earnings; it’s to protect your business from avoidable risks and make compliance effortless.
Q: Can I still charge a flat convenience fee instead of a surcharge?
A: Yes! The new tool also has an option for convenience fees. These are allowed in certain cases, but they follow different rules depending on how and when payments are made. This article explains more about the differences between surcharging and convenience fees, and when they can be used.
Q: Will this change how my customers see charges on their receipts?
A: The customer will still see what they will be charged when they go to check out. This will be displayed regardless of whether you have surcharging or convenience fees enabled, as required by law.
Compliance by Region
Surcharging regulations can vary by country, province, or state. Some U.S. states have specific restrictions or additional notice requirements.
We recommend that you review your local laws and card brand guidelines before enabling surcharging to ensure full compliance.
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