Surcharging Guide

Merchant Services Surcharges

What is surcharging?

Can I charge this on all debit and credit cards?

How will I know if I can assess a surcharge?

Do state laws about surcharges override the card brand rules?

State laws can override card brand (Visa, Mastercard, Discover and American Express) rules, so knowing what's allowed in your state is essential. Here is a summary of the rules for the states in which Arvest Bank operates:

Oklahoma: Surcharging is NOT ALLOWED in Oklahoma due to a state law that prohibits it. Surcharging any cards, including credit cards, is prohibited in Oklahoma.
Arkansas, Missouri & Kansas: Surcharging credit cards is generally allowed, but it is critical to comply with Visa and Mastercard rules, which are capped at 3% or the cost of card processing, whichever is less. Proper disclosures are required on receipts and at the register.

What do I need to do to apply a surcharge?

What happens if I don't follow the rules surrounding surcharges?

The Dos & Don'ts of Surcharging

Dos:

Ensure legal compliance: Verify that surcharging is legal in your state and comply with local laws and credit card network regulations.
Transparency and clarity: Disclose the surcharge policy to customers before they pay, ensuring they understand the fee.
Equal application: Apply the surcharge uniformly to all credit card transactions, avoiding discrimination among card types.
Reasonable surcharge levels: Set surcharges that cover your processing costs while remaining fair to customers.
Staff training: Educate staff on the surcharge policy to effectively explain it to customers.
Offer alternatives: Provide customers with multiple payment options, including those without surcharges, such as cash and debit cards.
Document and review: Keep your surcharge policy well-documented, and regularly review and adjust rates as needed.

Don'ts:

Don't surcharge debit cards: Surcharges are typically limited to credit card transactions and can’t be applied to debit cards.
Don't exceed legal limits: Avoid charging more than your actual credit card processing costs or exceeding the limits set by card networks (e.g., 3% for Visa or 4% for Mastercard).
Don't mislead customers: Avoid deceptive practices and ensure they understand the surcharge and its purpose.
Don't discriminate among card types: Apply the surcharge uniformly across all credit card types unless permitted by local law and credit card network agreements.
Don't surcharge for refunds: If you refund a customer, you must also refund the corresponding surcharge.
Don't ignore customer feedback: Monitor customer reactions to the surcharge and be flexible in adjusting the policy if necessary.
Don't forget to inform your processor: You must notify your credit card processor and card associations at least 30 days in advance of your intention to surcharge.

Questions: If you have additional questions, please contact your local Merchant Sales Advisor or email us at merchantsupport@arvest.com.