Are you ready to speak with a Payment Industry expert?
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:
- Audit merchant signage and receipts. Ensure disclosures match Visa’s requirements.
- Educate merchants. Many violations are due to misunderstanding.
- Verify surcharge limits. Double-check they’re within the 3% limit.
- Encourage timely notifications. Merchants must notify their acquirer 30 days before they start surcharging.
- 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.
Are you ready to speak with a Payment Industry expert?
