Business InformationPayment Processing

Surcharging and Debit Cards

By July 25, 2019 April 24th, 2020 No Comments

Beware of the Debit Card

We are in the middle of our summer blog series regarding surcharging. Lately, we are coming across more and more merchants who are interested in surcharging, cash discounting, and convenience fees. I believe this stems directly from the fact that merchants are getting tired of paying credit card processing fees. Now, more than ever, merchants are searching for ways to cut merchant processing cost. When looking for ways to cut cost quickly, it is important to still research! You can be locked into a contract with one signature.

No matter which method, one thing that holds true is that you cannot surcharge on a debit card. This means that your POS system or stand-alone terminal needs to be able to differentiate between a credit card and a debit card. Like we have said in our previous posts, it is important to research your state laws. As of right now, surcharging is not permitted in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas, and Puerto Rico.

The purpose of not surcharging on a debit card is to provide your customers with another payment option without a surcharge. We know that accepting plastic is expensive; we learned first hand with our first business, MAX Communications. That is why I started MAX Payment Solutions.

Moreover, we strive to help local businesses save money on their credit card processing fees. We offer a variety of options, so call us to figure out the best option for your business!