Visa and MasterCard have made changes to their merchant acceptance practices effective January 27, 2013 as a result of the Merchant Class Action Litigation Settlement.
Merchants will now have the choice to add surcharges for some card based transactions. With the exception of pre-paid & debit cards, a merchant can now add a fee for accepting credit cards not to exceed the cost to process the card. Visa has determined that the surcharge should never exceed 4%. For full details on each brands rule and regulations regarding the new surcharge visit www.mastercardmerchant.com or www.visa.com/merchantsurcharging.
Before you choose to add a surcharge, you would want to take a few things into consideration. Your customers may find that your competitors have chosen not to add a surcharge on their products or services. This may lead to losing your customers to the competition. Another issue to look at is the complexity of training your sales representatives in adding the surcharge to some cards yet not on others such as debit. If your staff would miss-recognize a card, it could lead to penalties enforced on to you from Visa or MasterCard.
Your best route of travel is to insure you have the best rates available to you, so that the cost of credit card processing is at a minimum. Contact me at 800.51.TOTAL / 800.518.6825 if you would like to have your processing rates evaluated. Feel free to visit my website at www.totalmerchantservices.pro to view information on our free credit card terminal programs and other services I offer.
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You have beautifully explained the importance and updated news on the Payment Gateway Services. Keep up the nice posting as I have subscribed to your blog.
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