Now that it’s legal to pass credit card surcharges on to your customers, your company may have a big decision to make:
Is it a move worth making? It’s more complicated than simply tacking on the charge and bracing for the backlash, caution credit experts.
Here’s what you need to know.
First off, you can forget the whole thing if you accept plastic in any of these states: CA, CO, CT, FL, KS, MW, MA, NY, OK and TX. Those 10 have ruled surcharges can’t be passed on to customers.
Still in the game? As you decide whether it’s the right move for you, keep the following in mind:
• Notification. You’ll have to wait 30 days after notifying MasterCard and/or Visa and the acquiring bank of your company’s intent to charge the fees.
• Limits. Of course, you can’t charge customers more than you’d pay in fees. You can’t go over 4% of the transaction’s value, either. And you must let your customers know you’ll be charging the fees before you charge them.
Adapted from “Credit Card Surcharges Now Legal, but Tread Carefully,” NACM eNews, 1/31/13.
