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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