Surcharging/Cash Discounting/Duel Pricing

Just a heads-up to businesses that pass card cost on to customers.

Keep this in mind:

1. You can not Surcharge Debit cards even if its run as a credit transaction
2. You must have a sign at the entrance of your store that states you Surcharge
3. You can not Surcharge more than your effective rate
4. Must disclose Surcharge as a separate line item on receipt
5. You must comply with both your state laws and Visa/MC guidelines I’m finding that 50% of businesses are not complaint with one or both.
   This is a short list on Surcharge compliance

Sample Visa fine for non-compliance ( does not include possible state penalties) : merchants identified as surcharging improperly may be assessed an immediate US $1,000 fine then can go up to $25,000

Also Duel Pricing / Cash Discounting are different forms of cost recapture that have their own nuances

Sate rules on card cost capture: Credit Card Surcharge Laws By State Explained | LawPay
More info from Visa

I totally get this, BUT the big question here is how is a business to know if a customer uses a debit card, when 1st: cashier does not touch the card to inspect whether its an actual debit or credit card?? 2nd: when cashier asks the customer cash or credit & customer says " credit" and then uses a debit card unbeknownst to cashier??
I have clear signs at the door & at the POS stating, we do not accept debit “cash or credit only”
I have asked customers b4 cash or credit, they clearly stated “credit” I run the transaction, add the “convenience fee” then they “customer” says where do i enter a pin, i tell them we dont accept debit pin cards, they are run a credit after the transaction has processed

You need what is called a “Bin Number Checker” with software. It tells the terminal or gateway if the card is a debit card then the software doesn’t apply the surcharge to the transactions. Not all card card processing services have this capability. I suggest you have a conversation with your credit card processor on this topic … good luck