You may not think there is much difference in that wording, but if you aren’t careful about it, it could be a costly mistake to confuse the two.
One of our Wintix users received a complaint from Visa alleging they may be operating in violation of Visa’s rules related to assessing a surcharge to transactions paid for with a credit card and debit card.
Because the client didn’t know the requirements, they could have faced a penalty of several thousands of dollars.
- A surcharge is an additional payment assessed for payment.
- Surcharges are tied to the form of payment. Maybe you think more customers will pay with cash, if they are surcharged for a credit card payment. Visa shows you some considerations and requirements here.
- You can read more details to consider before implementing surcharges here.
- Credit card surcharges are optional fees added by a merchant when customers use a credit card to pay at checkout. Surcharges are legal unless restricted by state law. Businesses that choose to add surcharges are required to follow protocols to ensure full transparency.
- Is it Legal to Charge Customers a Credit Card Processing Fee?
- A service charge is an additional payment assessed for service.
- A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction. Many industries collect service charges, and use them to cover the costs of processing the tickets or completing an order.
- A Comprehensive Guide to Understanding Convenience Fees, Surcharges and Services Fees