Many businesses looking to begin surcharging quickly find themselves confused by issues around Visa’s “Field 28” or “surcharge field.” Fortunately it just takes a few answers to demystify this topic and prepare you for the next stage in surcharge implementation.
What is Field 28? Who’s involved?
All credit card transactions involve transmitting a collection of data to the card network. This data is organized via numbered “data fields.”
Field 28 is one of these data fields, and it only applies to Visa transactions. It’s Visa’s way of tracking surcharges to ensure compliance.
Visa requires that Payment Processors submit the surcharge amount to Visa in the transaction data. Specifically, Visa mandates the surcharge amount be populated in the “Field 28” data field that Processors send to Visa on each transaction.
Ultimately, a merchant must submit the surcharge data to its payment gateway (for card not present transactions) or a terminal device (for card present transactions). Gateways and terminals submit that surcharge data to the Payment Processor, who then submits it to Visa.
This means that merchants and Acquirers have distinct, separate responsibilities to comply with Visa’s Field 28 rule.
- Merchants: submit the surcharge amount in the Transaction data. How you do this depends upon whether it’s a Card Not Present or Card Present transaction.
- Acquirers: ensure the surcharge amount is collected from the Merchant and is able to be passed to Visa. Acquirers include Acquiring Banks, Processors, ISOs, and merchant aggregators like Payment Facilitators and software platforms that sell payment processing. Payment Gateways are NOT acquirers.
For Merchants
What are my responsibilities to comply with Field 28?
Merchants have just ONE responsibility to comply with Field 28: submit the surcharge amount in the Transaction data.
Visa rule 5.5.1.8 states: The Credit Card Surcharge must be included in the Transaction amount and be identified within the Transaction data.
Note that this requirement states that the surcharge amount simply “be identified” within the Transaction data.
What if my payment gateway or terminal does not have a surcharge-specific field to send the surcharge amount?
You can still surcharge. You simply need the surcharge amount to be identified within the Transaction data. Here are steps you must take depending upon the Transaction type:
- Card Not Present – Payment gateway: Every payment gateway allows you to provide additional data, typically through metadata or optional data fields. You should submit the surcharge amount in one of those fields if the gateway does not have a dedicated surcharge field. That will satisfy Visa’s merchant requirement to identify the surcharge amount in the Transaction data.
- Card Present – POS terminal: Surcharge fields are typically configured by a payment processor. An InterPayments surcharging expert can work with you to explore the specific terminals and payment processor configurations.
A payment gateway and/or processor tells me that I cannot surcharge because they do not support the surcharge field or Field 28 for some (or all) Acquirers. Can I still surcharge?
Yes. You can surcharge with the service of your choice as long as you can submit the surcharge data to the payment gateway or terminal. Merchants and their payment software platforms can always abide by the Visa merchant rules by submitting the surcharge data in an optional data field.
Separately, merchants have a First Amendment right to surcharge upheld by the U.S. Supreme Court in Expressions Hair Design v. Schneiderman (2017). While InterPayments recommends you always abide by Visa’s rule, Visa states that its rules may not conflict with prevailing law (1.1.1.3 Compliance with Laws and Regulations; ”In the event of any conflict between the Visa Rules and any applicable laws or regulations, the requirements of the laws or regulations govern”).
For Acquirers
How do I know if the acquirer responsibilities apply to me?
You’re an Acquirer with Field 28 responsibilities if you:
- Sign Merchants or Payment Facilitators
- Provide Cash Disbursements to Cardholders, OR
- Loads funds to a Prepaid Card, AND
- Directly or indirectly enter Transactions into Interchange.
Payment Gateways are NOT acquirers because they do not directly present Transaction data directly to an Issuing bank.
What do I need to do? How do I comply? What are the penalties for not submitting Field 28?
Visa enforces its surcharge rules against Acquirers. This includes Acquiring Banks, Processors, ISOs, and merchant aggregators like Payment Facilitators and software platforms that sell payment processing.
Visa rules mandate Acquirers submit the surcharge amounts in Field 28 to Visa. This requires your payment gateways and card present terminals have a dedicated field to allow merchants to submit the surcharge data. If you do not control your payment gateway or terminals, you must work with those vendors to enable accepting the surcharge amount from your merchants.
Failure to submit Field 28 can result in $1,000 fines per noncompliant transaction assessed by Visa.
For Acquirers and Merchants: Can I request a waiver?
You could request a waiver from Visa. You can request this through your processor if you lack a direct Visa contact*. Waivers are rare, and it’s never guaranteed that you will receive one. If you do, it may require extended negotiations and will take significant time to obtain.
*NOTE: If you are a Cybersource or Authorize.Net payment gateway customer or partner, you can request a waiver directly from Cybersource or Authorize.Net, as they are owned by Visa.