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Visa Implements New Credit Card Transaction Surcharge Rules: Maximum 3% Cap for Merchants

May 18, 2023
Visa Implements New Credit Card Transaction Surcharge Rules: Maximum 3% Cap for Merchants

Visa has recently implemented new surcharging rules for credit card transactions, with the maximum surcharge rate allowed at 3% (2% in Colorado). These new rules have gone into effect on April 15th, 2023, and apply to all merchants who accept Visa cards.

Merchants have the right to surcharge credit card transactions, but they must adhere to the maximum surcharge rates designated by the card brands and state laws while also ensuring a “Level Playing Field” with all accepted credit card brands. Simply put, if you accept all of the major card brands (i.e. Visa, MasterCard, Discover, and American Express), you must also surcharge a similar or more expensive card at the same surcharge rate.

It's important to note that merchants who fail to comply with these new surcharging rules could face potential penalties. Therefore, it's crucial to review and update signage in store locations, invoices sent to customers, or online checkout flows displaying a higher surcharge rate. This will ensure compliance with the new regulations and avoid any potential penalties.

Merchants who have concerns or questions about the new surcharging rules can review the Visa merchant surcharging Q&A document for more information. Visa is committed to supporting merchants through this transition and helping them navigate any changes that may require assistance.

In summary, Visa's new surcharging rules for credit card transactions aim to promote transparency for customers and ensure consistency in surcharge rates across all card brands. It's essential for merchants to comply with these rules by capping surcharge rates at 3% (2% in Colorado) for all card types. By doing so, merchants can avoid potential penalties and maintain a positive relationship with their customers.