Can a business charge a convenience fee to a customer?

Are businesses allowed to charge a convenience fee to customers who just want to use their credit cards? in short, yes. But the specifics are governed by credit card network policies and some state laws.

Is there such thing as a credit card convenience fee?

In short, yes. But the specifics are governed by credit card network policies and state laws. A convenience fee is a fee that a business charges customers who use credit cards via a specific payment channel rather than a payment channel that’s standard for the business.

Can a business charge a credit card fee?

Now that we’ve covered the convenience guidelines for each of the major card brands, let’s look at how your business or organization can charge customers a credit card fee. The major loophole that makes it possible for all business to indirectly charge customers to use a credit card is by offering a discount for cash or check purchases.

Can a third party charge a convenience fee?

A Convenience Fee may not be charged by any third party. In the U.S. Region, except as permitted in “Tax Payment Program – Interchange Reimbursement Fee Qualifications and Fee Amount – U.S. Region,” a Convenience Fee must not be added to a Recurring Transaction.

For example, many third party collection agencies do accept in-person payments. This may allow them to charge a convenience fee on a credit card payment. If a third party agency made it a policy not to accept in-person payments, however, they would be disqualified from charging a convenience fee.

Can a merchant charge a convenience fee on a credit card?

For merchants in an exclusively card-not-present environment, charging a credit card convenience fee can’t be done, as it is no longer an added convenience to the consumer. For example, many third party collection agencies do accept in-person payments. This may allow them to charge a convenience fee on a credit card payment.

What are the requirements for a convenience fee?

Fee must be included in the total amount of the transaction and not charged separately. Applicable to all forms of payment accepted in the payment channel. Fee must be a flat or fixed amount, regardless of the value of the payment due. Cannot charge for recurring transactions or installment transactions.