Understanding card brand rules and federal regulations can get confusing fast.
At ABS, we make it simple. Whether it’s Surcharging, Cash Discounting, or so-called “Convenience Fees,” our goal is to keep you compliant and save you time — while protecting your bottom line.
| Program Type | Allowed On | How It Works | Common Missteps |
|---|---|---|---|
| Surcharge | Credit only | Up to 3% added when following card brand rules | Never allowed on debit cards (PIN or no PIN) |
| Convenience Fee | Credit and Debit | Flat fee for alternate payment method (e.g., online) | Can’t be a % of sale Must be outside normal payment method |
| Service Fee | Select sectors (government, education) | Fixed or variable fee on payments | Not available to general merchants |
| Cash Discount | All tenders | Discount offered for cash payments. | Mislabeled programs often function as Surcharge programs |
While Surcharging is permitted on credit cards in most states in the US, Surcharging on debit cards is expressly forbidden – with or without a PIN. This again eliminates many Cash Discount programs. US merchants are allowed to assess a surcharge on credit cards not to exceed 3% provided they follow the requirement outline in Surcharge Questions and Answers.
Yes, but only under specific conditions. The fee must be a flat amount (not a percentage) and charged for an alternate payment channel — such as online vs. in-person payments. See Visa’s official guidance: https://usa.visa.com/support/consumer/visa-rules.html#Can_I_charge_a_convenience_fee_for_accepting_a_Visa_card_-copy
Only certain industries (like government or higher education) may assess service fees. These may be flat or variable, but only when permitted under card brand rules. Learn more here: https://usa.visa.com/support/consumer/visa-rules.html#Can_I_charge_a_service_fee_for_accepting_a_Visa_card_-copy
Our team helps ensure your program is compliant, transparent, and easy to manage.