To assist with mitigating noncompliance assessments, we would like to outline the rules that tend to cause the most confusion and the most violation notices. This list is not exhaustive but rather highlights some of the commonly offended rules, including: 

• Minimum/Maximum Transaction Amounts 
• Cash Discounting 
• Surcharging 
• Convenience Fees 
• Service Fees 

Minimum/Maximum Transaction Limits 

In order to minimize processing fees on lower dollar transactions, the card brands allow a Minimum  Transaction Limit amount to be implemented for credit card transactions. The rules for implementation are as  follows: 

Minimum Transaction Limit 

• A merchant may impose a Minimum Transaction Limit on credit cards. However, it MUST NOT  be imposed on a debit or prepaid card. 
• This requirement refers to the type of card presented for payment and not the method in which  the card is being processed (PIN debit, signature debit, credit). Minimum Transaction Limit  CANNOT exceed $10. 
• The cardholder must be allowed to use their credit card for all transactions over $10. A  merchant MUST disclose the Minimum Transaction Limit amount to be imposed by placing  signage at both the entrance into the location and the point of purchase. 

Maximum Transaction Limit 

• A merchant may NOT impose a Maximum Transaction Limit on debit or credit card  transactions. 

NOTE: A debit card refers to a card that has a cardholder’s checking or savings account attached to it as a  funding source for the transaction. The word “Debit” is usually printed on the card. 

Cash Discounting 

A merchant may implement a discount to customers who pay in cash rather than a card; however, there are  specific rules around doing so. The rules are as follows: 

• The listed price of the good or service MUST be the price PRIOR to any discounts for payment method.  The discount would then be applied to the price at the point of purchase if the customer chooses to  pay in cash. 
• Merchants are not permitted to post a cash price and then charge a higher price for cards at the point  of purchase. 
• A merchant MUST disclose the Cash Discount intent and amount by placing signage at both the  entrance into the location and the point of purchase. 

Surcharging 

A Surcharge is a fee assessed on credit cards to help recoup all or part of the card processing cost. 

• Registration is required before implementing a Surcharge. Visa requires a Surcharge indicator to be  included in the transaction.
• Please check with us to ensure your device can Surcharge properly and is set up to send the indicator.  Surcharges must NOT be charged to a debit or prepaid card. 
• This requirement refers to the type of card presented for payment and not the method in which the  card is being processed (PIN debit, signature debit, credit). 
• Surcharge can be charged in a Face-to-Face and Non Face-to-Face environment.
• The Surcharge amount can be fixed or variable, but it must be charged the same on all card brands and  all payment channels. 
• Surcharging cannot exceed the cost of acceptance and is capped at 3%. Note: The cap for Visa is 3%  while Discover and Mastercard are at 4% and American Express OptBlue is 3.5%. Given that there is a  rule requiring parity across all card brands, the cap of 3% must be utilized. 
• A merchant MUST clearly disclose the Surcharge intent and amount by placing signage at both the  entrance into the location, at the point of purchase, and on the transaction receipt. Disclosure must  have the exact amount or percentage of the Surcharge. Disclosure must include a statement that the  merchant is assessing the Surcharge and is only applicable to credit transactions.
• The cardholder must be given the opportunity to cancel the transaction without penalty after the  Surcharge is disclosed. 
• Surcharging is currently prohibited in Massachusetts, Connecticut, Maine, and Oklahoma (this list is  subject to change without notice). Note: When assessing a Surcharge (in accordance with card brand  requirements), please also consult your legal counsel as needed, to ensure that Surcharging is  permitted by law as it varies by jurisdiction and may not be allowed or may have limitations. 
• A Surcharge cannot be charged in conjunction with a Service Fee or a Convenience Fee. The intent and definition of these are a bit different and each has their own set of rules (see below). 

NOTE: Surcharging rules apply to Visa, Mastercard, and Discover. Surcharging on American Express is only  allowed via our American Express OptBlue program. (If you are interested in processing American Express  OptBlue, please contact us for information on the program and eligibility.) 

Convenience Fees 

Convenience Fee is a fee charged to cardholders as a way for a business to recoup some costs involved for offering convenient payment options to cardholders. The card brands rules for implementing a Convenience  Fee are as follows: 

• A convenience fee MUST only be charged when a true convenience for the cardholder is offered as an alternative payment channel to a customary payment channel. 
• Convenience Fees are ONLY allowed in a non face-to-face environment; NEVER in a face-to-face environment. 
• The Convenience Fee MUST be disclosed to the cardholder prior to the charge being applied.
• A cardholder MUST be given the opportunity to cancel out of the payment/fee (without penalty) and the ability to use the same form of payment at a brick and mortar location (face-to-face). 
• The Convenience Fee must be a fixed amount; a percentage is not allowed. 
• A Convenience Fee can be charged on both credit and debit cards. 
• No card brand registration is required. 
• Convenience Fees CANNOT be charged on recurring transactions. 

Service Fees

Service Fees are used by government and education merchants as means to help recoup the cost of  accepting payments. This type of fee is only eligible for select government and education merchant types. The card brand rules for implementing a service fee are as follows: 

• Registration with Visa is required in order to implement a Service Fee. Upon approval, Visa will assign a  specific code that we will place into our system. This will indicate to Visa that the transaction has  been approved for Service Fees. 
• Only the following government merchant category codes are all eligible: 9211 Court Costs, Including  Alimony and Child Support; 9222 Fines; 9311 Tax Payments; 9399 Government Services (Not  Elsewhere Classified) 
• Only the following education merchant categories are eligible: 8211 Elementary and Secondary  Schools; 8220 Colleges, Universities, Professional Schools, and Junior Colleges; 8244 Business and  Secretarial Schools; 8249 Vocational and Trade Schools 
• The service fee can be a fixed or variable amount and charged on all payment channels.
• The fee must be disclosed to the cardholder prior to the charge. 

NOTE: Service Fees are a term recognized and defined by Visa only. Mastercard, Discover, and American  Express do not recognize this as a unique fee type and do not have separate requirements around it. 

In conclusion, it is important that all merchants understand and follow the specific card brand requirements  for Minimum Transaction Amounts, Cash Discounting, Surcharging, Convenience Fees and Service Fees as  described above. This is imperative in order to mitigate the risk of noncompliance violations and the potential  for costly noncompliance fines. 

This contains a compilation of information received from various sources.

This information is presented solely for the convenience of the reader and should not be used as a substitute for your own research and reference to actual regulations and/or other official documents or as a substitute for consulting your legal advisor. Evolv, Inc and its affiliates shall not be responsible for any inaccurate, outdated or incomplete information.