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How do I charge my credit card processing fee?

Author

Mia Moss

Published Feb 26, 2026

How do I charge my credit card processing fee?

All merchants are allowed to charge their customers a convenience fee for using a credit card if the customer is using a non-customary payment channel. For example, if a business primarily accepts payments in person, a convenience fee may be added if their customer uses a mail or telephone order.

Consequently, can I charge a processing fee?

These fees are called credit card surcharges, and they're more common than you might think. Retailers may decide to charge these fees to help offset the credit card processing fees they have to pay. In some states, however, it's illegal for businesses to pass credit card processing fees on to the customer.

Also Know, is it legal to charge credit card fees to customers? Credit card surcharges are optional fees added by a merchant when customers use a credit card to pay at checkout. Surcharges are legal unless restricted by state law. The consumer's receipt must also indicate a surcharge was added to the bill. Surcharges cannot be imposed on debit cards or prepaid debit transactions.

Thereof, how do you charge a credit card convenience fee?

Convenience fees can be a fixed dollar amount or a percentage of the transaction amount (usually 2 to 3 percent) and must be disclosed to the customer in advance. Ways to charge credit card fees to your customers: Add a line item for credit card surcharge to the invoice and add a standard amount to each invoice.

How are credit card processing fees calculated?

Processors calculate the flat rate as a percentage of the full transaction, or as a percentage of the purchase price plus an additional, fixed fee. Square, for example, is known for their flat-rate pricing—for each card present transaction, the Square fee is 2.6% + $0.10.

What is an online processing fee?

Payment processing fees are the costs that business owners incur when processing payments from customers. Businesses that accept credit cards and online payments are charged a small fee per transaction, which is referred to as the payment processing fee.

How are convenience fees calculated?

The fee amount will be a flat rate of $3.75 for debit or ATM/Debit transactions and 2.25% (minimum of $3.75) of the tax liability payment amount for all other payment types. To calculate the convenience fee, select a payment method, card type, and then enter the payment amount below.

Are credit card processing fees subject to sales tax?

When you process a credit card transaction, your customer's credit card is charged for the total amount of the sale including sales tax. Transactions aren't divided into sale amount and taxes. Since the transaction amount is the sum of the total sale and the sales tax, you pay your processing fees on that amount.
Credit and debit card surcharges were banned in January 2018, but retailers, letting agents and even a university have been found breaking the rules. The legislation means customers cannot be charged more for paying by card.

Can you charge a convenience fee on debit cards?

You can charge a convenience fee on both card-present and card-not-present credit and debit transactions so long as: The fee is only charged for a bona-fide convenience outside of the typical payment channels and sales process. The fee is applied to all payment channels, including cash.

How do you avoid credit card convenience fees?

How to Avoid Paying a Credit Card Convenience Fee or Surcharge. For the most part, getting around a convenience fee is easy. Since only certain types of merchants charge them, you can simply use a different payment method and continue using your credit card for other everyday purchases.

What is the difference between a credit card surcharge and a convenience fee?

It's important to note that a convenience fee is different than a surcharge. A surcharge is the ability to charge extra just for the benefit of using a credit card while a convenience fee is for a specific use, such as taxes or tuitions, or payment through alternative channels, such as by phone or online.

What is a processing fee?

A payments processing fee is what you pay your credit card processor for use of the product. Typically, this fee is charged per transaction, , in hidden fees, and monthly fees.

Can restaurants charge a credit card fee?

California has a law, California Civil Code section 1748.1, that prohibits retailers from adding a surcharge when a consumer chooses to use a credit card instead of paying by cash.

How do you offset credit card processing fees?

A quick strategy for how to offset credit card processing fees
  1. Lower operating expenses.
  2. Increase sticker prices.
  3. Set a minimum for using a credit card.
  4. Avoid manual entering of credit card info (this leads to higher fees)
  5. Negotiate with your credit card processor.
  6. Find a cheaper payment processor.

How Much Does Visa charge merchants per transaction?

Average credit card interchange fees: 1.5% to 3.3%
Payment networkInterchange fee range
Visa1.15% + $0.05 to 2.40% + $0.10
Mastercard1.15% + $0.05 to 2.50% + $0.10
Discover1.35% + $0.05 to 2.40% + $0.10
American Express1.43% + $0.10 to 3.30% + $0.10

How much is the average credit card bill per month?

The average monthly credit card bill is a minimum payment of $123.88, based on the average American credit card balance of $6,194 and the average minimum payment percentage of 2%.

Do merchants get credit card processing fee back when customer makes a return?

Some credit card processors will refund the processing fees, but charge you a flat-rate fee for returns. This could be as little as $0.05 or $0.10. These fees might not necessarily appear on your transaction as a “credit card refund fee.†But you may not be getting your processing fees back.

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