The payments sector can often be perplexing, and it may appear that complexity is intentional. At GoTab, our goal is to provide openness and understanding. By gaining insight into the processing fees you pay, you can manage these costs more efficiently. We know that every business is looking to be more profitable.
Let’s start with the good news! The GoTab point of sale now offers a credit card surcharging option.
While it’s not relevant for everyone, if expensive credit card fees are making a dent in your profits, read on to learn.
Bottom Line Up Front: This feature will allow you to pay a flat 1.5% + .15 for your credit and debit card processing while being in full compliance with current card network rules and government legislation. You should consider your customer demographics to understand any potential impact on your business. With certain customer demographics, implementing credit card surcharging may have a negative impact on your bottom line. But with the right customer profile, credit card surcharging will save you money while maintaining your customer base.
And Now for Some Fine Print
As required by card brand rules, our credit card surcharging feature applies to credit card processing only. It does not apply surcharges to debit cards, prepaid cards, or gift card transactions. Additionally, the maximum percentage allowable to be passed along to customers is 3.0% (specific rates vary by state). If you choose to implement GoTab’s credit card surcharging feature, you must comply with all of the credit card networks’ specific rules and requirements for surcharging. Some of the key requirements are outlined below, but please seek additional details directly from Visa and Mastercard for full compliance.
Eligibility: Beyond rules around surcharging only being applicable to credit card payments, there are a few additional eligibility restrictions to include:
- Merchants located in states where state law prohibits surcharging are not eligible, including Connecticut, Maine, Massachusetts, and Oklahoma.
- Merchants outside of the US, including US territories are not eligible.
- Merchants in Colorado can charge a maximum Credit Card Surcharge of 2.0%.
Signage & Informing Guests: All merchants instituting GoTab’s surcharging feature are required to display clear and visible disclosure signage at every entrance and point of transaction (e.g. storefront and registers). For accounts with surcharging in place, GoTab’s restaurant POS will surface notification of surcharges on guest checks, receipts and Customer Facing Displays. It is your responsibility to comply with all in-store signage requirements.
Additionally, GoTab recommends that you inform and train your staff on how surcharge fees work to effectively inform and answer guest questions. This includes disclosures on menus, in seating areas, etc. The most important detail to communicate is that surcharging applies to credit card transactions only.
If you’d like to learn more, and perhaps discuss the pros and cons of adopting this pricing model, set up some time with us by requesting a demo or contacting us at info@gotab.io.
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