New Card Rules and Regulations for Merchant Surcharging

As your merchant services provider, we are writing to notify you of how you will be impacted by changes Visa recently announced to their rules regarding surcharge programs, effective April 15, 2023. Helpful surcharge reminders are located at the end of this notice to further assist you in maintaining a compliant surcharge program.

What is changing as of April 15, 2023?

  • Any merchants who choose to implement a surcharge program will no longer need to notify Visa directly. However, merchants will continue to need to notify their acquirer and Mastercard 30 days in advance of assessing surcharges. Please note that, in this context, we constitute your “acquirer” and you do not have to provide additional notice.
  • The maximum amount of surcharging in the U.S. and its territories will be lowered from 4% to 3%.

What action is needed?

  • Your point of sale devices should automatically update to reduce the surcharge rate to 3% prior to April 15, 2023. However, on or before that date, it would be a good idea to ensure your equipment is surcharging no more than 3%.
  • You must update any customer disclosures and signage to reflect the rate change to 3%.

Reminders to help maintain a compliant surcharge program

  • Surcharges are only permitted on credit cards and in the U.S. or its territories where surcharges are not prohibited by local law.
  • Whenever a surcharge is assessed, the surcharge amount must be populated in the applicable surcharge fields, which Visa will now consider to be the notification of surcharge.
  • Visa will continue to monitor the assessment of surcharges and will implement compliance action when violations of the Visa Rules are identified.

Thank you for being a valued customer. Should you require any additional information regarding Visa’s revised surcharge rules, please call the customer service number on your statement.