Can I extend a surcharge to my clients?
In today’s world of billing - accepting credit cards has become the norm.
Some states allow merchants to extend a surcharge to end-clients, however many do not permit surcharging. Furthermore, federal and state laws surrounding surcharge and consumer protection are in a constant state of evolution and have come under particular scrutiny of late. As regulations vary from state to state and consumer protection laws change daily - we highly recommend you investigate what is legal in your region, state and federal jurisdiction before making the decision to surcharge.
Other Important Items:
- Major card brands may require you to notify them of the intent to surcharge your end-clients.
- Your clients must be made aware of the intent to surcharge ahead of time and give informed consent, sometimes in writing.
- Businesses are never permitted to surcharge more than the amount of the fee.
- Surcharges can only be placed on credit card fees - no debit transactions.
- A surcharge must be a clearly and separately listed line item.
- The American Bar Association recommends that instead of surcharging, law firms should instead increase their hourly rate to help cover the cost of online payment transaction fees.