As a result of a legal settlement to resolve claims brought by a group of U.S. merchants, merchants in the U.S. and U.S. territories may add a payment card surcharge, also known as a checkout fee, to certain credit card transactions starting January 27, 2013. Visa’s Operating Regulations continue to prohibit surcharging outside the U.S. unless there is a local law or variance that requires merchants be permitted to engage in the practice.
U.S. merchants that surcharge are required, among other things, to:
Currently, 10 U.S. states have surcharging restrictions including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
For more information about the surcharge, or to report merchants charging excessive payment card surcharges, or surcharging debit and prepaid card transactions, visit www.visa.com/checkoutfees, and fill out the Report a Merchant Violation form if necessary. Alleged surcharging violations will be investigated.
*Retailers must limit the amount of the surcharge to the applicable merchant discount rate for the credit card transaction surcharged. In cases where the applicable merchant discount rate exceeds 4% of the underlying transaction amount, in no event can the merchant assess a surcharge above 4%.