Frequently Asked Questions
Surcharging is legal. But like sales taxes, the rules are tricky unless you devote your whole life to them. Fortunately for you, we do.
In addition, we put our money where our mouth is. We guarantee your surcharging compliance, which means we're 100% aligned with your interests. We're incentivized to get them right 24/7/365.
Here are some common questions our customers asked before entrusting InterPayments' surcharging technology.
How is InterPayments’ surcharging different?
First, InterPayments is a Data-as-a-Service technology solution – not a payment gateway, ISO, or processor. In fact, we work with many of them today and can work with all of them. You can surcharge without a rip-and-replace of your current payments providers.
Second, guaranteed compliance. We commit to it in our contracts. Our surcharging service works just like your sales tax vendor to maximize your credit card fee recoveries. InterPayments dynamically calculates the compliant surcharge amount on each of the 350,000 card types outstanding real-time, before card authorization.
Third, surcharge anywhere you accept credit cards using your existing payment providers. You're not stuck surcharging a single fixed rate. Or one payment device. Our API installs anywhere you accept payments: virtual terminals, receivable automation platforms, ERPs, customer portals, ecommerce shopping carts, etc. InterPayments consolidates your surcharging across multiple platforms using your existing payments technology. We grow with your business.
Fourth, tailor surcharging the way you want – at the click of a button. Surcharging is not a one-size-fits-all program. InterPayments offers you complete control over where, when, how much, and who you surcharge. Choose which orders, product lines, or transactions to surcharge.
can be surcharged?
Credit cards, Purchase Cards (P Cards), Virtual Cards (V Cards), and Single Use Account (SUA) Cards can be surcharged across all card brands.
Certain card brands prohibit surcharging Debit and Prepaid Cards.
Which credit card processing fees
does InterPayments recover?
100% of any PER TRANSACTION FEES up to the maximum of 4.0% total:
- Interchange fees: to card issuing banks
- Scheme fees (aka Network or Assessment fees): to card networks
- Acquirer markups: to acquirers and/or merchant banks
- Payment Processing fees: to the payment processor
- Gateway fees: to the payment gateway
- Authentication fees: if not included in the base processing per transaction fees
Can I surcharge specific customers based upon loyalty?
What about surcharging different order values?
Yes, you can surcharge specific customers and not others. However, you cannot discriminate amongst customers based upon the credit card type they are using or based upon other federal/state laws that prohibit customer discrimination.
Yes, you can surcharge different order values. With InterPayments, you can set surcharge amounts by order value yourself at the click of a button.
What’s the difference
between a Convenience Fee and a Surcharge?
A Surcharge is only applied to credit cards per certain card brand rules, but it can be applied to all channels of sales (physical in person, card not present, e-commerce, etc.)
A Convenience Fee can be applied to any card type in narrow circumstsances. It's a fee to use a more “convenient” way to pay. It can only be applied to card-not-present card payments, if that payment channel is a non-standard payment method. There must be one channel of sales where a Convenience Fee is not applied.
Surcharge – a B2B invoice payment. The merchant can pass along the credit card processing fees across all of their payment channels: electronic invoice payments, telephone payments, and physical in store payments.
Do I need to tell anyone
that I’m surcharging?
Yes. InterPayments handles this for you as part of our service. InterPayments notifies the card brand networks (that require notice) and your merchant acquirer 30 or 60 days notice prior to your first surcharge. We also provide recommended notice to customers in advance of your surcharge program.
Is the surcharge
a separate transaction?
No. The customer will receive and pay one total fee in one transaction.
What happens to the surcharge
if I refund a transaction?
Refunds apply to the surcharge amounts, just like with sales taxes. If you refund an entire order amount, you also refund the entire surcharge amount. If you issue a partial refund, you would issue a partial refund of the surcharge amount (on a pro-rated basis). InterPayments provides a refund API that you calculate the refund amount for your automatically.