When a fee is incorrectly applied to a transaction, an additional fee charged to those consumers using a credit card might be labeled a Surcharge, and that is expressly forbidden by Visa, Mastercard, and the processing provider without taking very specific steps. Additionally, you are forbidden by Visa, Mastercard, and the Processor’s rules to profit on a credit card transaction, which could happen if you accidentally charged more than you were being charged by the processor.
The way to avoid this risk is to implement an automated Cash Discount Program that is different than a Surcharge. In the Cash Discount Program, you post signage stating that all consumers will pay a 4% Service Fee; however, for those who elect to pay with cash, the fee will be waived. Using the Cash Discount Program, we will automate your equipment so that the Service Charge and discount are automatically added for your customers, depending on their method of payment.