In recent weeks, Visa has intensified its enforcement efforts on non-compliant fee programs, affecting thousands of merchants across the U.S. For first-time violations, merchants are issued $1,000 assessments for non-compliant fee programs, so it’s essential that resellers, ISOs, and payment providers understand what’s changing, what’s required, and how to keep their merchants in compliance. 

This blog breaks down what Visa’s new enforcement push means and how you can help your merchants avoid costly penalties.

What’s Happening?

Visa has issued widespread notifications to acquirers, flagging merchants who are utilizing the non-compliant Non-Cash Adjustment program or have implemented compliant fee programs incorrectly or without following proper procedures. Acquirers are being charged upwards of $1,000 per assessment. The goal is clear: Visa is cracking down on non-compliant practices, and enforcement is no longer theoretical; it’s actively happening. 

What Is a Surcharge?

A surcharge is an additional fee a merchant adds to a transaction when a customer chooses to pay with a credit card. It’s intended to help merchants offset the cost of credit card processing fees. However, surcharges must be implemented with strict adherence to Visa’s guidelines to be considered compliant.

According to Visa’s U.S. Merchant Q&A (2024), merchants may only surcharge credit cards, not debit or prepaid cards, and must not exceed 3%.

Key Visa Surcharge Compliance Requirements

If your merchants plan to surcharge, they must follow these rules:

• Provide notice to their acquirer at least 30 days prior to implementing a surcharge.
• Display compliant signage at the point of entry and point of sale.
• Include the surcharge amount in a dedicated field (Field 28) of the transaction message.
• Limit surcharges to credit cards only—debit and prepaid card transactions cannot be surcharged, even if “credit” is selected on the terminal.
• Clearly disclose the surcharge on the receipt and during the transaction.
• Ensure surcharge amount is not higher than 3%

Additionally, merchants operating in certain states (e.g., Connecticut, Maine, Massachusetts, Oklahoma, and Puerto Rico) are legally prohibited from surcharging. Others, like Colorado and New York, have specific requirements that must also be followed​.

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What Does Non-Compliance Look Like?

Examples of non-compliance include:

• Applying a surcharge to debit or prepaid card transactions.
• Charging more than the allowed amount above the 3% cap. 
• Failing to provide proper signage and receipt disclosures.
• Not notifying the acquirer 30 days prior to surcharging.
• Labeling the fee incorrectly on receipts or signage.

Even seemingly minor violations—like improper wording on signage or charging a surcharge on a debit card that was run as “credit”—can result in a $1,000 assessment from Visa.

You can view Visa’s compliant signage samples here​.

What’s the Difference Between a Surcharge and a Cash Discount?

It’s critical that resellers and merchants understand that surcharging and cash discounting are not interchangeable.

• A surcharge is added on top of the advertised price when a customer uses a credit card.
• A cash discount is a discount from the listed price if the customer pays with cash or another non-card method.

Cash discounting must also be implemented correctly to avoid being flagged as an illegal surcharge. The full card price must be listed upfront, not added at the end of the transaction​.

What Should Resellers and ISOs Do?

As a reseller, your reputation is tied to the success and compliance of your merchants. Here’s what you can do to stay ahead of Visa’s enforcement push:

1. Audit merchant signage and receipts. Ensure disclosures match Visa’s requirements.
2. Educate merchants. Many violations are due to misunderstanding.
3. Verify surcharge limits. Double-check they’re within the 3% limit.
4. Encourage timely notifications. Merchants must notify their acquirer 30 days before they start surcharging.
5. Provide proper training. Equip your teams with the resources they need to help merchants implement compliant programs.

If a merchant receives a violation notice, time is of the essence. Prompt resolution and documentation can help reduce the risk of further assessments or account funding holds.

BOLD’s Support for Partners

If you’re working with BOLD, you’re not in this alone.

Our Risk & Compliance Manager and our Partner Experience Managers (PXMs and SPMs) are available to assist partners and their merchants with surcharge compliance. We can:

• Review signage and disclosures
• Assist with acquirer notifications
• Provide clarification on confusing rules
• Support merchants through appeals or corrections

If you or your merchant received a surcharge violation, reach out to your dedicated contact for personalized help.

Conclusion

Visa’s surcharge crackdown is here, and the stakes are high. As a reseller, now is the time to get informed, be proactive, and support your merchants in maintaining compliance. With the right education and partner support, you can help protect your portfolio and avoid costly penalties.

For more resources or assistance, reach out to the BOLD Risk & Compliance Team today.

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In recent years, local payment methods (LPMs) have experienced substantial growth, becoming critical in the global e-commerce landscape. 

What Are Local Payment Methods?

Local payment methods (LPMs) are payment options tailored to consumers’ preferences and cultural practices in specific regions of the world. Examples include digital wallets and transfer apps like Zelle in the U.S., Alipay in China, and iDEAL in the Netherlands. By aligning with regional consumer expectations, businesses offering LPMs typically see improved conversion rates and greater customer loyalty. 

The Rise of Local Payment Methods

Consumer demand for localized payment solutions is rapidly growing, significantly influencing purchasing behaviors worldwide. Offering familiar and trusted payment options can greatly increase conversions and customer satisfaction, reducing friction at checkout. Roughly 13% of consumers abandon their shopping carts due to the lack of preferred payment methods, emphasizing the necessity for businesses to incorporate LPMs.

Why Local Payment Methods Matter to Your Business

1. Enhanced Customer Experience: Offering localized payment solutions aligns with customer expectations, creating an easier, more intuitive checkout process. Addressing this need can significantly reduce cart abandonment rates, directly improving sales and customer retention.
2. Global Market Expansion: Businesses leveraging local payment methods can effectively enter and thrive in new global markets. These payment solutions facilitate smoother transactions, helping companies gain trust and acceptance from local customers enabling stronger international growth.
3. Improved Cash Flow and Efficiency: LPMs, such as digital wallets and real-time payments, offer merchants faster access to funds. This speed enhances cash flow, allowing businesses to reinvest quickly and maintain operational efficiency.

Conclusion

Local payment methods represent a significant opportunity for businesses to drive growth, enhance customer experiences, and enter new markets effectively. Companies that integrate these methods, backed by regulatory and consumer support, are more likely to succeed in a competitive global market.

Successfully integrating LPMs involves selecting payment providers that offer transparent pricing, strong security measures, and continual technology updates. Ensuring your payment partner stays ahead of regional trends and consumer preferences will position your business advantageously in a competitive marketplace.

References:

• Baymard Institute. (2024). Cart Abandonment Rate Statistics. https://baymard.com/lists/cart-abandonment-rate
• EY Parthenon. (2025). Key 2025 Payments Trends.
• Checkout.com. (2024). An Introduction to Local Payment Methods. https://www.checkout.com/blog/an-introduction-to-local-payment-methods

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The right payment processor can enhance your software’s value proposition, improve merchant adoption, and create new revenue streams. But with so many options, how do you choose the right embedded payments partner?

Here are the key considerations every ISV should evaluate when selecting a payment processor.

Frictionless Merchant Pricing and Sign-Up Process 

A long, complex onboarding process can be a deal-breaker for ISVs and their merchants. A payment partner should offer a seamless sign-up experience, transparent pricing, and minimal manual intervention for new merchant activations. For merchants, cash flow isn’t just important, it’s everything. Delays in receiving funds can disrupt operations, limit reinvestment opportunities, and even put businesses at risk of failing. Many small business owners operate with tight margins, meaning every transaction counts. If merchants have to wait days or even weeks to start accepting payments, they may abandon the process altogether. The faster you can get them their funds, the happier they’ll be.

“Merchants expect the funds processed from a card to be deposited into their bank accounts as quickly as possible.” (PayNation, 2024)

A frictionless sign-up experience ensures merchants can start processing transactions quickly, leading to faster revenue for ISVs. BOLD ensures that ISVs and their merchants can focus on growth without complications.

Support for Multiple Payment Methods & Future-Proof Solutions 

Beyond onboarding, ISVs also need to think about how their merchants accept payments. Customers expect to pay how they want, whether it’s credit cards, debit cards, digital wallets, or virtual cards. However, businesses today are also exploring alternative payment solutions such as ACH, bank transfers, real-time payments (RTP), and Buy Now, Pay Later (BNPL) services. ISVs must ensure their embedded payments partner can accommodate a wide range of payment preferences, including emerging payment methods, to meet evolving customer expectations.

“According to a recent Forbes survey, 53 percent of respondents use digital wallets more often than traditional payment methods, so it’s important to choose a payment processor that supports virtual card capabilities.”​ (PayNation, 2024)

When evaluating a payment processor, ISVs should look for a partner that supports all of their unique and complex use cases and payment flows. Including but not limited to attended and unattended self-service, mobile and softPOS applications, plus pay-by-app, e-commerce, recurring payments, and broad omnichannel payment flows. The processor should also offer a seamless integration process to ensure merchants can provide a smooth checkout experience across all channels. Future-proofing is critical; ISVs should choose a provider that continuously innovates, ensuring compatibility with emerging technologies such as tap-to-pay and embedded finance solutions. By selecting a payment partner with broad payment method support and a commitment to innovation, ISVs can enhance merchant adoption, reduce churn, and stay competitive.

Transparent Pricing & Revenue Share Opportunities 

Pricing models can make or break a partnership. Look for a processor that offers clear, competitive pricing and revenue share models that help maximize profitability. Unexpected fees or complex rate structures can create frustration, erode margins, and make it difficult to scale.

“Make sure your payment processor explains the total cost of payment processing, including interchange fees, transaction fees, monthly fees, chargeback fees, and sometimes also less obvious costs, such as membership fees, set-up fees, and Payment Card Industry (PCI) compliance fees.” (PayNation, 2024)​

Beyond transparency, a strong revenue share program can significantly enhance an ISV’s profitability. Payment processing should not only be a necessary function of your software but also a strategic revenue driver. When assessing potential partners, ISVs should evaluate the percentage of revenue share offered, how payments are structured, and whether real-time transaction-level reporting is available to maintain full financial visibility.

The importance of transaction-level transparency isn’t just a best practice, it’s why BOLD Integrated Payments exists today. In 2009, our Chief Strategy & Quality Officer, Gary Liu, founded BOLD after discovering a major gap in his own payment processor’s reporting system. Instead of detailed, transaction-level insights, he was only provided with aggregated data, making it impossible to audit charges properly or understand the true cost of payment processing. Recognizing that ISVs and merchants alike need clear, actionable financial data to run their businesses effectively, Gary built BOLD with transparency as a core principle, ensuring that every partner has access to real-time, transaction-level reporting.

Choosing the Right Embedded Payments Partner 

Selecting an embedded payments partner is a strategic decision that impacts merchant satisfaction, revenue growth, and long-term scalability. The right processor should offer easy onboarding, seamless payment method integration, transparent pricing, and a strong revenue-sharing model, all while future-proofing your business.

BOLD’s offerings set the industry standard:

• Streamlined merchant sign-up process with intuitive workflows.
• Transparent, competitive pricing with no hidden fees.
• Eliminates unnecessary friction to increase conversion rates.
• Auto-approval for low-risk merchants in 30 minutes or less.

Ready to Take the Next Step?

If you’re an ISV looking for the right embedded payments partner, let’s talk. BOLD Integrated Payments offers fast and easy onboarding, automated merchant approvals, and industry-leading support to help you scale.

References:

PayNation. (2024). Eight Key Considerations for ISVs When Choosing a Payment Processor for Maximum Success and Profitability.

Forbes. (2024). Credit Card Statistics And Trends.

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Independent Software Vendors (ISVs) continuously want more control over the experience they deliver to their clients. As their growth plans continue to quickly evolve, they have recognized the importance of embedded payments. And as they take on additional payment-related responsibilities, they gain a higher share of the processing fees. However, not all payment providers offer the same level of support or economic advantages.

Key Considerations for ISVs Selecting a Payments Partner

The 2023 Software Study Report by TSG and ETA highlights the 3 primary factors ISVs evaluate when choosing a payments provider:

• Competitive Economic Split
• Quality Customer Support Team
• Easy Merchant Onboarding Process

TSG, 2023 Software Study Report, Page 16

What Many Integrated Payments Providers Lack

Many embedded payments providers simply fall short and fail to deliver on these critical components, leading to frustration for ISVs and their merchants. ISVs often cite concerns over unclear revenue-sharing models, slow merchant onboarding, and inadequate customer support. As a true partner, payments providers should actively contribute to the ISV’s growth and success going beyond just processing transactions.

Why Embedded Payments Are More Important Than Ever

According to the TSG study, 73% of ISVs are reevaluating their payments strategies. By selecting the right embedded payments partner, ISVs can unlock new growth opportunities while strengthening their software’s value proposition.

How BOLD Stands Out

BOLD Integrated Payments is committed to addressing these industry gaps, and giving control to ISVs:

• High Revenue Share Programs – ISVs receive true high revenue share with transparency on all income and expenses.
• Comprehensive Support Framework  – We are a nimble organization with engaged, personable, and responsive team members.
• Frictionless Merchant Onboarding – ISVs manage merchant pricing and sign-up process plus benefit from automated merchant approval and quick activation.

At BOLD, we believe that knowledge is just as valuable as service. Our goal is to equip ISVs with the insights and tools needed to further power their payments strategy, not just sell them a solution.

Let’s talk about your specific requirements and explore BOLD’s unique approach and industry insights.

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The Federal Trade Commission (FTC) recently proposed the Click to Cancel rule, a regulation aimed at simplifying the subscription cancellation process for consumers. For businesses that rely on subscription models, this rule brings new requirements designed to ensure transparency and fairness. ISVs (Independent Software Vendors), VARs (Value-Added Resellers), and merchants must understand these changes and adapt to remain compliant while maintaining a seamless customer experience.

In this blog, we’ll break down the key elements of the Click to Cancel rule, why it’s important, and how ISVs, VARs, and merchants can prepare.

What Is the Click to Cancel Rule?

The Click to Cancel rule mandates that businesses offering subscription services must provide consumers with an easy and straightforward way to cancel their subscriptions. The cancellation process must be:

• As Easy as Signing Up: If customers can sign up for a subscription online, they must be able to cancel it through the same channel without unnecessary hurdles.
• Transparent: Businesses must clearly communicate cancellation options, including any conditions or steps required.
• Efficient: No lengthy phone calls, complicated procedures, or unnecessary delays to process cancellations.

This rule is part of the FTC’s broader efforts to protect consumers from deceptive subscription practices, such as auto-renewals that are difficult to cancel.

Why Does This Rule Matter?

The Click to Cancel rule is designed to address consumer frustrations, but it also has significant implications for businesses:

1. Compliance Requirements:
   Merchants must update their systems to ensure compliance, which may involve technology upgrades and policy revisions.
2. Enhanced Transparency:
   Clear cancellation processes build trust and improve customer relationships.
3. Potential Churn:
   Easier cancellations may lead to higher churn rates, requiring businesses to focus on retention strategies.

For ISVs and VARs, helping merchants adapt to these changes presents an opportunity to strengthen partnerships and add value to their offerings.

How ISVs and VARs Can Support Merchants

As trusted technology providers, ISVs and VARs play a crucial role in helping merchants navigate the Click to Cancel rule. Here’s how you can support them:

1. Offer Cancellation-Ready Software

Ensure your solutions provide merchants with tools to offer seamless cancellation processes. Features like self-service portals, online cancellation forms, and automated workflows can simplify compliance and improve customer satisfaction.

2. Educate Merchants on Compliance

Provide training and resources to help merchants understand the rule and how it impacts their operations. Clear guidance on updating subscription terms, improving transparency, and tracking cancellations will set them up for success.

3. Focus on Retention Strategies

Encourage merchants to strengthen their retention efforts. Strategies such as personalized communication, loyalty rewards, and flexible subscription options can help mitigate the impact of increased cancellations.

4. Leverage Analytics

Offer tools that track customer behavior and cancellation trends. Analyzing this data helps merchants identify at-risk subscribers and take proactive steps to retain them.

5. Stay Ahead with Automation

Automated solutions can handle cancellations efficiently while providing a seamless experience for customers. Automation reduces the administrative burden on merchants and ensures compliance with FTC regulations.

Implications for Merchants

For merchants, the Click to Cancel rule isn’t just about compliance—it’s also an opportunity to improve customer relationships. Here’s what merchants should focus on:

• Simplify the Customer Experience: Streamlined cancellation processes can demonstrate a commitment to transparency and fairness, fostering trust and long-term loyalty.
• Strengthen Retention Tactics: Focus on understanding customer needs and offering incentives or alternatives to cancellation.
• Adapt Quickly: Merchants who implement these changes early will gain a competitive edge in the subscription market.

Balancing Compliance with Customer Retention

While the Click to Cancel rule makes cancellation easier, businesses can view this as a chance to strengthen customer loyalty. By offering value beyond the subscription itself—such as personalized experiences, superior service, and flexible options—merchants can turn potential churn into an opportunity for growth.

For ISVs and VARs, this is where your expertise can shine. Providing merchants with the tools and insights they need to adapt ensures compliance while reinforcing your value as a partner.

Conclusion

The FTC’s Click to Cancel rule is set to change the subscription landscape, pushing businesses to prioritize transparency and ease of use. For ISVs, VARs, and merchants, adapting to these changes isn’t just about compliance—it’s an opportunity to improve customer relationships and build trust.

By working together, businesses and their technology partners can create a seamless, customer-friendly subscription experience that fosters loyalty and drives growth. Ready to take the next step? Let BOLD Integrated Payments help you stay compliant and competitive in the evolving payments landscape.

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