Surcharging involves adding a fee at checkout to cover credit card processing costs. Many small and midsize merchants are implementing surcharges, but major companies like Apple, Walmart, and Amazon do not. These large businesses employ legal teams and compliance experts to manage processing fees effectively. They are aware of the risks associated with surcharging, including potential fines from credit card networks and regulations. Missteps can result in significant penalties, and many agreements allow processors to pass on fines to merchants, leading to further complications.
Big companies have armies of lawyers and compliance experts. They also utilize firms to help them reduce their fees without ticking off customers. Most importantly - they understand the hidden dangers of surcharging: Legal risks: Missteps can trigger fines from card networks or regulators. Fines can exceed $10,000 per violation.
Surcharging means adding a fee at checkout to cover the cost of customers paying with a credit card. It sounds simple. But staying compliant with some of the states and card-brand rules is anything but.
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