A convenience fee is a charge passed on to customers for the privilege of paying for a product or service using an alternative payment method that is not standard for a business. A business that traditionally accepts cash or checks for transactions but also offers credit card payments for convenience may charge an additional fee for that convenience.

For example, a movie theater typically sell tickets face-to-face at the box office. However, if the movie theater provides customers with an alternative option to pay by phone using a credit card, the theater could charge a convenience fee. The convenience fee is charged not for using a credit card, but for the privilege of using the pay-by phone option.

WHAT YOU NEED TO KNOW

• Registration with the card brands is not required
• A convenience fee may only be assessed in a Card-Absent Environment and may not be charged if you operate exclusively in a Card-Absent environment
• Convenience fees may not be applied to recurring transactions
• Convenience Fees must be implemented according to Card Brand rules, and the type(s) of hardware/software solutions available for each method may also vary

Click here for current rules and regulations regarding Convenience Fees.