Table Of Contents
Overview
Surcharging is an option available to merchants using the Payment API, allowing them to add a fee to transactions. This article provides insights into the rules set by card brands, processor support, and how to effectively utilize the Payment API for surcharging.
Rules and Limits
Card brands typically limit surcharges to a maximum of 3%. However, specific rules can vary among merchants. It's essential for businesses to be aware of these regulations to ensure compliance and avoid any issues with card brands.
Processor Support
While the Payment API supports surcharging, not all processor integrations can transmit the surcharge value to the processor. Selecting a compatible processor is crucial for ensuring that all parties involved in the transaction are informed about the applied surcharge. The Partner portal's Processor Matrix provides a list of supported processors for surcharging.
Utilizing the Payment API
The Payment API facilitates surcharging through a dedicated surcharge variable in the transaction request. Unlike some systems, the Payment API does not perform the surcharge calculation, requiring merchants to specify the surcharge amount. For instance, a sale transaction request for $10 with a 3% surcharge would be structured as follows:
POST: /api/transact.php
PARAMS:
[
security_key : your_security_key
type : sale
amount : 10.30
surcharge : 0.30
]
Tips for Merchants
- Stay Informed: Regularly check card brand rules and regulations regarding surcharging to ensure compliance.
- Processor Compatibility: Before implementing surcharging, verify that your chosen processor supports the transmission of surcharge values through the Payment API.
- Clear Communication: Clearly communicate surcharges to customers during transactions to maintain transparency and trust
Conclusion
Surcharging can be a valuable tool for merchants seeking additional revenue streams. By understanding the rules, ensuring processor compatibility, and effectively using the Payment API, businesses can implement surcharging practices smoothly and transparently.