If you want to charge a comfort fee for ACH payments, we advise you to work with your processor. You may have suggestions for good practice that you can follow so that you don`t have problems with state laws. I will cover the special masterCards rules regarding the convenience fees of educational and municipal merchants in a little calculated. For now, the following rules are MasterCard for convenience fees, which apply to most transactions that have been repossessed on page 5-19 of their MasterCard Rules document. In addition to the publication of this communication at the terminal, a Russian distributor must meet other requirements. In one famous example, Verizon felt the wrath of its customers when it announced in December 2011 that it would charge customers a convenience fee of 2 $US if customers paid with credit or debit cards on the company`s website or over the phone. The company quickly reversed its decision following a flood of complaints. In the absence of clear and declared rules for convenience costs, the only other consideration is Section 2.4 of Discover`s use regulations r11.1. This rule obliges the trader not to discriminate the use of the Discover card, much like the american Express policy. If you do not charge a convenience fee for visas, but you rate one for Discover, you are violating this rule. So I`m puzzled when “fees are applied to all payment channels, including cash.” as it`s a convenience fee.
It`s as if the whole purpose is to calculate a fee to recover your fees when you provide another payment channel that your customer chooses through your primary payment method, but the fees must then be evaluated on all payment methods. What do I miss here? Credit card payment often brings rewards. But in some situations, these benefits have a price, not only by interest, but in the form of convenience fees When it comes to convenience fees, different card processing networks have different guidelines: In most cases, yes, but if the transaction is less than a certain amount, the trader is only required to provide a receipt if you request it. In addition, the merchant is not required to provide a receipt for a low value transaction on an unsupervised terminal, for example. B a vending machine. If you have received a surcharge, contact your card issuer and provide the dealer`s name and location. American Express has fairly vague restrictions on convenience fees, and they more or less build the rules established by the other three major card brands. American Express presents its policies regarding convenience charges in Section 3.2 of the American Express Merchant Regulations. A merchant is allowed to offer discounts for cash payment, however, the discount must be indicated as a reduction in the standard price. Comfort fees are the fees levied for the right to pay for a product or service with an alternative payment or payment method that is not the norm for the merchant. Cinemas, for example, usually sell tickets face to face at the evening box office. However, if a cinema gives customers the ability to pay by phone with a credit card, this theatre could charge a comfort fee.
Technically, you are not paying for the use of your credit card, but for the privilege of using the Pay-by-Phone option. MasterCard also mentions a discount in its pricing policies by saying: “A merchant can give a discount to his customers for cash payments.” “We made an effort to ensure that consumers had the opportunity to choose how they wanted to pay,” said Seth Eisen, a mastercard spokesman. Because organizations can charge convenience fees, the cost of accepting credit cards is less prohibitive.