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Can I add a 3% surcharge to all my Visa and MC transactions using GoPayment app?

I am a small business located in Hawaii and accept credit card payments from customers ONLY using the Go Payment app on my cell phone.  I want to add an across the board 3% surcharge for Visa and MC paying customers (I don't accept Amex or Discover).  My plan is to add it to the invoice, then run the card with that added 3% already incorporated.  I understand that I need to let Visa and MC know ahead of time, as well as my credit card servicer (which is Go Payment), but I am confused if it GoPayment allows this??  The link https://community.intuit.com/articles/1768678-accepting-credit-card-payments-the-basics has the info: "Protect your account: There are a few guidelines you must follow to protect and manage your new account and also prevent fraud. Here's a list of dos and don'ts that can help protect you from losing your payments account and from incurring extra fees or fines. Don't charge any sort of usage fee for credit card transactions to offset the cost of accepting credit cards."  Then there is other information on your website stating I can add it.   Please advise if I can add the 3% surcharge to all my Visa and MC transactions using GoPayment. 

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Best answer 09-09-2019

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Established Community Backer ***

@cjb The cost of processing for credit card transactions...

@cjb

The cost of processing for credit card transactions is just a cost of doing business.  State laws vary on the legality, and also on your requirements to notify the customer both before and during the purchase.

I use square, no monthly fees, and $2.75 as a merchant fee  on every $100 sale is not going to hurt me.

But you should be aware of the state and federal laws, it is not just the CC company you have to comply with.

and you can not surcharge a debit card or pre-paid card at all, and how will you know in an online environment?  Better to just raise the price a little or accept the expense as part of doing business

Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

surcharge fees must be itemized on the receipt, in store or online

an overview
https://www.valuepenguin.com/credit-card-surcharges-convenience-fees
http://www.ncsl.org/research/financial-services-and-commerce/credit-or-debit-card-surcharges-statute...



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3 Comments
Established Community Backer ***

@cjb The cost of processing for credit card transactions...

@cjb

The cost of processing for credit card transactions is just a cost of doing business.  State laws vary on the legality, and also on your requirements to notify the customer both before and during the purchase.

I use square, no monthly fees, and $2.75 as a merchant fee  on every $100 sale is not going to hurt me.

But you should be aware of the state and federal laws, it is not just the CC company you have to comply with.

and you can not surcharge a debit card or pre-paid card at all, and how will you know in an online environment?  Better to just raise the price a little or accept the expense as part of doing business

Surcharging for using a CC card is illegal in the following states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

surcharge fees must be itemized on the receipt, in store or online

an overview
https://www.valuepenguin.com/credit-card-surcharges-convenience-fees
http://www.ncsl.org/research/financial-services-and-commerce/credit-or-debit-card-surcharges-statute...



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Community Contributor *

Note that illegal surcharging laws have been struck down...

Note that illegal surcharging laws have been struck down in half those states.  Surcharging is allowed in most states, but five still have bans — Colorado, Connecticut, Kansas, Massachusetts and Oklahoma —  These have active court cases and it is probably that all states will allow surcharges soon.
QuickBooks Team

Hello there, cjb. Currently, we can add a surcharge to an...

Hello there, cjb.

 

Currently, we can add a surcharge to an invoice through QuickBooks, not in the GoPayment app.

 

Just to clarify, are you using a stand-alone GoPayment app? If that's the case, we don't have an option to add a surcharge using the GoPayment app since it records a real-time transaction.

 

But if you connect GoPayment to QuickBooks Desktop Enterprise, you'll be able to add a surcharge using that software. To add a surcharge, you can create a subtotal item to apply a surcharge to all selected items on an invoice. This item totals all the previous items within an invoice.

 

Here' how:

 

  1. Go to the Lists menu.
  2. Select Item List.
  3. Click the drop-down arrow next to Item and select New.
  4. For the item Type, select Subtotal.
  5. Enter a name for the subtotal.
  6. Enter a description to show on invoice or sales receipt.
  7. Select the columns you'd like to add on the total.
  8. Click OK.

Once done, you can add the subtotal item on the invoice.

 

For more information about adding subtotals, you can refer to this article: Add, Edit, and Delete Items.

 

You can also visit our Help Articles for QuickBooks if in case you need tips and related articles in the future.

 

Please feel free to post any questions you have below. The Community is always here to help out.

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