Convenience Fees: What Are They and Can You Charge One?

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What is a convenience fee?
- A service fee is a convenience fee that’s only for certain types of education and government merchants.
- A credit card surcharge (sometimes called a checkout fee) is a fee to cover credit card fees associated with a transaction.
Can you charge your customers a convenience fee?
- Visa, for example, allows convenience fees if they're for actual convenience in an alternative, nonregular payment channel (such as phone or online orders if the business typically sells in person). Merchants can’t charge a convenience fee solely because the customer is using a card.
- In addition, Visa doesn’t allow convenience fees on card-not-present transactions, but Mastercard does. Check your agreements to understand exactly how the rules apply to your business.
- Visa doesn’t permit convenience fees on recurring transactions or installment transactions, such as subscriptions or monthly fees, but Mastercard and American Express do
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What is a reasonable convenience fee?
How to charge a convenience fee
Convenience fee alternatives
Article sources
- 1. Fiserv. A Comprehensive Guide to Understanding Convenience Fees, Surcharges and Services Fees. Accessed Apr 29, 2022.
- 2. Connecticut State Department of Consumer Protection. Credit Card Surcharges. Accessed Apr 29, 2022.