Surcharged Processing
The customer only pays for credit card fees.
Credit Cards
Under this payment acceptance model, a flat three percent surcharge is applied to credit card transactions to cover the cost of processing. Rather than the business absorbing the processing expenses, the surcharge is disclosed and added to the transaction amount at the time of payment in accordance with card brand regulations. This structure shifts the cost of credit card acceptance from the business to the customer while maintaining transparency at checkout. Rules and regulations vary by state.
Debit Cards
Under this payment acceptance model, debit card transactions are not eligible for surcharging in accordance with card brand regulations. As a result, no additional percentage or fee may be added to a debit transaction at the time of payment. The business remains responsible for all processing expenses associated with debit card acceptance, whether the transaction is PIN or signature-based. While regulatory frameworks help keep debit card acceptance lower than credit, the business must absorb these costs in full, maintaining compliance with network rules and ensuring a transparent checkout experience for the customer.
Fee Management
Fee management can be structured in one of two ways: processor managed or business managed. Under the preferred processor-managed method, surcharge fees collected from customers are removed by the processor prior to funding. At month end, the total surcharge collected appears as a rebate on the processing statement, simplifying accounting and eliminating the need for separate invoice line items. Under the merchant-managed model, surcharge amounts are deposited into your bank account with daily funding, and the processor later debits the total surcharge collected. While both methods achieve the same financial outcome, processor-managed funding provides cleaner reporting and streamlined reconciliation.