Credit Card Surcharging

Overview

A credit card surcharge is an additional fee added to a credit card transaction. This fee is designed to offset the processing costs that merchants incur when accepting credit card payments.

The surcharge is typically calculated as a percentage of the transaction amount and is added to the total cost at the point of sale. It's important to note that surcharging is different from convenience fees or service charges, as it specifically relates to the payment method chosen by the customer.

Rules and Regulations

Surcharging is subject to various regulations and restrictions that vary by location and card network.

Legal Requirements

Geographic Restrictions: Some jurisdictions prohibit or restrict credit card surcharging
Card Network Rules: Visa, Mastercard, and other networks have specific guidelines for surcharging
Registration Requirements: Many jurisdictions require merchants to register with card networks before implementing surcharging

Business Rules

Surcharging is only allowed on credit cards, not debit cards, prepaid cards or bank accounts
The surcharge must not exceed the actual cost of processing the credit card transaction
Clear disclosure to customers is required before the transaction is completed

Calculate Surcharge Endpoint

To apply a surcharge, you must first calculate the legal maximum surcharge rate for the given transaction. This rate is determined by several factors:

Card Type: Different card types (rewards cards, corporate cards, etc.) may have different processing costs
Merchant Location: Limits are subject to the legal requirements and regulations of the jurisdiction where the merchant operates
Processor Fees: The cost of processing varies by payment processor

The Calculate Surcharge endpoint is a one-stop shop to determine the maximum surcharge amount for a transaction before processing the payment. The endpoint accepts a payment method and a transaction amount and automatically calculates the maximum based on the card details, your merchant location and your merchant processing fees. The calculated amounts can then be used in the subsequent sales call.

❗️
Failure to adhere to the calculated surcharge amount may cause legal or compliance issues. It is imperative that you use the Calculate Surcharge endpoint before any sale that you intend to apply a surcharge to.

Request Object

POST /surcharge/calculate
{
    "transaction_amount": 100.00,
    "payment_method" : {
        "card": {
            "card_number": "4242424242424242",
            "expiration_year": 2035,
            "expiration_month": 12,
            "cvv": "123",
            "billing_postal_code": "30330",
            "cardholder_name": "John Doe"
         }
    }
}

The endpoint automatically calculates the maximum surcharge amount for the transaction to ensure you remain compliant with location and card network regulations.

Response Object

{
    "transaction_amount": 103.00,
    "surcharge_amount": 3.00,
    "surcharge_rate": 0.03
}

Use the returned values to populate your subsequent sale amounts. Review the workflow below.

Integration Workflow

Step 1: Calculate Surcharge

Before processing a payment, call the Calculate Surcharge endpoint with:

Card details
Transaction amount

Step 2: Process Payment

Include the calculated surcharge in your sales request

Use the same card and transaction details used in the calculation
Add the surcharge amount to the surcharge_amount property
Include the surcharge amount in the transaction total amount
- For example, for a $100 transaction with a $3 surcharge, the total amount should be $103

A surcharge amount can be passed in to any of the following sales requests: