A surcharge, or checkout fee, is a fee merchants in the U.S. and it's territories may add to a consumer's bill when a credit card is used for payment.
Surcharging lets you pass 100% of processing fees to credit card paying customers. You have the ability to apply a payment card surcharge, which is an additional fee added to a customer's bill when a credit card is used for payment. This will let you completely cover the cost of accepting credit cards.
Is it legal to charge a credit card fee?
Surcharging is only allowed for credit card transactions, not for debit card transactions or prepaid gift card transactions.
A merchant surcharge can be between 1% and 4% but cannot be higher than the cost of your card processing.
Surcharges can only be applied to certain payment amounts. The payment or transaction amount must be at least $1.00.
Registration with Visa and Mastercard is required: Merchants must notify Visa, Mastercard and MegtechPOS at least 30 days prior to beginning the surcharge.
Surcharging needs to be disclosed. For face-to-face transactions: You must disclose the surcharge as a merchant fee and clearly alert the customers to the practice at the point of entry, the point of sale or transaction, and on every receipt. For telephone orders, you must provide verbal notification of surcharge and surcharge amount before sale is complete.