Many companies choose not to charge extra fees by credit card because, of course, they are not a big hit with customers. So it`s really a choice if you view your merchant fees as a cost to do business and make customers happy, or accept those fees at the risk of alienating some customers. Westpac does not issue American Express cards, so we cannot see their fees and charges. We recommend that you contact American Express directly. Keep in mind that according to EFTPOS overload rules, you can only cover the costs associated with accepting a particular payment method. If you charge more than that, you could overcharge. Let`s take a look at what you can and can`t calculate. See Payment supplements – only calculate what it costs you Unfortunately, there is no research on the effects of surcharges and their prevalence in the United States. The next episode was an Australian government investigation.
The survey found that 68% of respondents believe retailers and other businesses should not charge their customers extra fees for credit card payments. In short, if you`re set up for credit card processing and charge extra, your fees can`t be excessive. It`s not worth risking a six-figure fine just to make a few extra cents out of each sale. In the example above, if a surcharge of 25c has been applied for credit card purchases, this should also be clearly stated. The company could probably do this in a variety of ways, such as: If you charge extra for customer payments, you should publicly display the cards to which the surcharge applies. Your surtax signs must be clear and publicly visible and, if applicable, indicate the percentage or amount of the surtax. When a customer touches, dips or swipes their debit or credit card, mobile phone, smartwatch or NFC-enabled device on your EFTPOS device, there is a small fee to process that transaction. The money has to go from the customer`s bank account to your account, and there are a number of checks that need to be done before that happens. Once you`ve reviewed your statement and decided how you`re going to apply the surcharge, it`s time to upgrade your payment terminal or gateway. If a business decides to charge its customers a surcharge for a credit, debit or prepaid card payment, the amount of the surcharge must not be excessive. The ACCC will investigate complaints of excessive surtaxes and take enforcement action as required.
The rules governing convenience fees do not apply to government and educational institutions. These organizations are allowed to charge convenience fees in person and online. Once you`ve verified your card acceptance costs on your June statement, you can apply those costs as an extra. If the state where your business is located allows additional credit card fees, you should always weigh the pros and cons before imposing additional fees that are generally frowned upon by consumers. If credit card surcharges are prevalent in your local market, adding these fees may not discourage customers. However, if you`re one of the few businesses in your area that charges such fees, you can scare off potential customers. However, if you choose to apply a payment surcharge for a prohibited payment method, the amount of the surcharge cannot exceed your applicable fees for accepting that payment method. If you decide that the answer to most of the above is no – and you choose not to add extra to the cost of your products or services – you may be able to reduce your business expenses in other ways. For example, you can slightly increase the base prices of your products or services. You will receive monthly bank statements and an annual statement. Invoices help you determine how much surcharge you can pass on to your customers if you choose to do so.
If you have not received bank statements, you should contact your bank. You should also make sure that higher surcharges for other card types are clearly displayed. All merchants are allowed to charge their customers a convenience fee for using a credit card if the customer uses a non-standard payment channel. For example, if a business primarily accepts personal payments, convenience charges may be added if their customer uses a mail or phone order. This option is recommended if you want to charge one rate for credit cards and another for debit cards. As a business owner, you decide whether to bear these costs or pass them on to your customers in whole or in part as a supplement. If you pass on all of your purchase costs, you will receive a royalty-free EFTPOS treatment. The alternative is to choose a fixed percentage for all cards.
However, if you do, you can only calculate the percentage that relates to the most profitable card scheme. So let`s say you look at all your acceptance costs and determine them as follows: You can also set a different surcharge for each card scheme, which is the average transaction costs for each card scheme. This would ensure that all transaction costs are fully covered and not just the level corresponding to the cheapest card scheme. If the ACCC believes your additional fees are excessive, they may send you a breach notice and ask you to pay a fine. Failure to comply with the Notice of Infringement may also result in legal action being taken against you by the ACCC. Surcharges can only cover fees that merchants pay directly to their acquirer or equivalent payment intermediary and certain costs directly related to the accepted payment card. The Reserve Bank of Australia (RBA) has clearly defined the costs that can be included in the calculation of acceptance costs, and the Australian Consumer and Competition Commission (ACCC) has supervisory and enforcement powers to ensure that all merchants do not charge excessive fees. In this article, we`ll explore credit card surcharges, the rules for charging them, and some information on how to set your EFTPOS supplement if you apply one. First of all, merchants cannot charge more than they pay in transaction fees.
You can either charge different amounts in EFTPOS fees or choose a fixed percentage/amount for all card payments. An easy way to avoid misleading consumers is to display a flat rate that includes the lowest surcharge that the consumer cannot avoid. Yes. You can charge extra as a fixed amount or as a percentage. Please note that you cannot charge fees higher than the cost of accepting payments for this type of card. It`s up to you to determine if a fixed amount is right for your business.
