Surcharging
What is Surcharging?
Surcharging is the practice of adding a small fee (capped at 3%) to a customer’s total when they choose to pay with a credit card. This fee helps merchants recover the cost of credit card processing, which would otherwise reduce their bottom line. By implementing surcharging, businesses can keep more of their profits while still offering the convenience of credit card payments—without raising prices on their products or services. It’s a smart way to manage rising processing costs while staying competitive and transparent with customers.
Surcharging applies to credit cards only. It does not apply to debit card transactions or cash sales. Customers are notified of the surcharge through clear signage placed at the business—typically at the entrance and the point of sale. They’ll also see the surcharge fee on the terminal or point of sale before confirming their credit card payment. This transparent approach ensures customers are aware of the fee before completing their purchase.
How Does Surcharging Work?
Enter the Amount
The terminal automatically adds a 3% surcharge fee to the transaction total
Customer confirms the amount to proceed with the transaction
Customer Selects method of payment
Customer is prompted the signature screen based on the type of transaction
Surcharge amount displayed and printed on receipt
Surcharge Compliance
- Signage must be posted at the entrance as well as the Point-of-Sale
- Signage must state:
- Exact amount or percentage of the Surcharge.
- Statement that a Surcharge is being assessed by the merchant.
- Surcharge is only assessed on credit card transactions.
- Surcharge is not greater than the MDR.
- Merchant must be registered with Mastercard 30 days before processing
- Along with the merchant application, the merchant must also execute the Merchant Attestation
Savings Calculator
What is the amount of your average credit card transaction?
$10,000
How much is your average credit card processing volume per month?
$50,000
How much is your average credit card processing bill per month?
$50,000
Your savings
$360.00
Your monthly processing cost
$99.95
Your savings per month
$99.95
$0.90 (3%)
Your savings per year
Surcharging are legal
Surcharging is not legal
(aka is prohibited)
Surcharging is legal at a
maximum of 2%
Surcharging is legal in
Restaurants Only
