What Are The Card Brand Rules?
Surcharge programs have been around for a while now. But because card processing is complicated and surcharge programs have strict rules, most businesses haven’t seriously looked into them.
That’s where Nadapayments comes in. We’ve done our homework when it comes to the rules that major credit card brands require merchants to follow in order to offer a surcharge program.
Rule #1: The merchant must be registered with the major card brands.
Nada: We’ll complete the registration for you.
Rule #2: The merchant must inform customers of credit vs. debit card/cash fees with appropriate signage at store entrance and point of sale.
Nada: Not only will we send you some spiffy signage, our terminal, mobile app, and desktop app also display cash vs. credit pricing.
Rule #3: The credit card fee must not exceed 4% and the merchant cannot profit from the fee.
Nada: Our surcharge solution charges customers a 3.5% fee for credit card purchases. You don’t pay a dime of it yourself.
Rule #4: The credit card fee and product or service price must be processed together. The receipt must show the credit card fee as a separate line item.
Nada: Our surcharge solution automatically adds the credit card fee as a separate line item on receipts.
Rule #5: The merchant cannot apply a fee to debit cards.
Nada: Our surcharge solution automatically adds the credit card fee as a separate line item on receipts.
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Coming soon:
Frequently ask questions
Are surcharge programs new?
Not really. Many small businesses in the U.S. have offered lower prices to customers willing to pay with cash for years. This practice is particularly common at gas and service stations all over the country.
Is your surcharge program legal?
It is in 46 states. Surcharge programs require that businesses follow the card brand rules and display the “cash price” next to the “credit card price” wherever prices appear. For example, if a product costs $10 with cash, it may cost $10.35 with credit (3.5% credit card processing fee). Customers cannot be charged a fee for debit cards.
I’ve never heard of this before. How does it work?
Credit card companies charge a fee each time a merchant processes a credit or debit card payment. Traditionally, the business owner pays this fee, not the customer. After signing up with Nadapayments, we’ll give you compliant signage and equipment to accept credit cards at no cost. You pay no fees at all to accept credit cards. If a customer pays with a debit card, our system will charge you a flat fee of 1% + 25 cents for each debit card transaction.
Will this reduce my monthly credit card processing bill to “nada”?
Absolutely. Your daily savings will speak for themselves. Your monthly statement will only contain debit card processing fees.
Will I lose business by making customers pay processing fees?
Businesses that follow the Nadapayments model have not reported any decline in sales. Customers are simply given more flexibility in their payment options. Cash and debit payments are not subject to any surcharges. If you market it properly, a surcharge program can play an important role in boosting your annual product sales while lowering your expenses.