What Are Convenience Fees?
Convenience Fees are charged for the “convenience” of paying through an alternative channel.
To promote the acceptance of eCommerce cards, the card associations established a Convenience Fee program, enabling merchants to impose Convenience Fees on transactions conducted via online channels.
Convenience Fees are not permissible under the following circumstances:
- They cannot be levied solely for accepting a card; a “customer present” payment method must also be available.
- They cannot be imposed alongside a Surcharge.
- They cannot be applied to recurring or installment transactions.
- They cannot be collected separately from the transaction amount.
Benefits
- Legally share processing fees with your customers.
- Improve cash flow and lower your expenses.
- Offer your customers the convenience of an additional payment channel.
Cardholder Disclosure
A Convenience Fee must be clearly disclosed to the customer and the merchant must communicate that the fee is for the convenience of using an alternative payment channel.
The customer must also be allowed to cancel the transaction prior to completion.
Educate your employees.
When employees are well trained and knowledgeable, they will ensure the success of your program (you’ll save money!).
Train your employees right away – don’t wait. This will help make them more comfortable.
Make the training fun. Try role playing, have active discussions and give employees the chance to ask questions and give feedback.
Reward positive behavior and motivate your employees. Compliment employees when you see them doing a great job.
Disclaimer: The information provided in this communication does not, and is not intended to, constitute legal advice and is provided for informational purposes only. Recipients of this communication should contact their attorney to obtain advice with respect to any particular legal matter.