Eliminate Credit Card Fees with Surcharging

Surcharging lets you pass 100% of processing fees to credit card paying customers. You have the ability to apply a payment card surcharge (also known as a checkout fee), which is an additional fee added to a customer’s bill when a credit card is used for payment.

This lets you completely cover the cost of accepting credit cards!

What is a Surcharge?

A surcharge, or checkout fee, is a fee merchants in the U.S. and its territories may add (subject to certain limitations) to a consumer’s bill when a credit card is used for payment.

Merchants who choose to surcharge

  • Can potentially save thousands of dollars (or more!) annually while driving costs on credit card transactions to zero
  • Must follow consumer disclosure and other requirements

Before choosing to surcharge, Visa suggests U.S. merchants consider:

  • The potential impact on your customers’ experience
  • What your competitors might be doing
  • What information must be disclosed to your customers, and how
  • Cost of credit cards and other forms of payment

How Dharma Supports Surcharging

Every Dharma account comes with our MX Merchant platform for easy transaction management and reporting. The MX Advantage option is available for $25 / month, and turns on surcharging for both card-present and card-not-present situations. Because it is part of the MX suite, surcharging via Advantage also is available in the QuickPay virtual terminal, MX Invoice for invoicing and recurring payments, and MX Quickbooks Sync, for reporting the surcharge in QB.

In a card-present environment, we also recommend the Dejavoo Z11 terminal, that integrates directly into MX Advantage for smooth, seamless transitions for your customers.

Please note: currently, surcharging is only available on the TSYS platform. This means that surcharging cannot be used with Clover Point of Sales systems, which require the Fiserv/First Data platform.

Is it legal to charge a credit card fee?

  • Surcharging is only allowed for credit card transactions, not for debit card transactions or prepaid gift card transactions.
  • A merchant surcharge can be between 1% and 3%, but cannot be higher than the cost of your card processing. Colorado limits merchants to 2%; and Illinois limits merchants to 1%, or the true cost of the transaction, whichever is less.
  • Surcharges can only be applied to certain payment amounts. The payment or transaction amount must be at least $1.00.
  • Surcharging is currently prohibited in Connecticut, Maine, Massachusetts, and California (effective July 1, 2024).
  • Registration with VISA and Mastercard is required: Merchants must notify Visa, Mastercard and Dharma at least 30 days in advance of beginning to surcharge. Simply alert the Dharma Support team that you are going to implement surcharging, and we will coordinate your registration.
  • Surcharging needs to be disclosed. For face-to-face transactions: You must disclose the surcharge as a merchant fee and clearly alert consumers to the practice at the point of entry, the point of sale or transaction, and on every receipt. Signage is included with the merchant’s welcome kit. For Telephone orders: must provide verbal notification of surcharge and surcharge amount before sale is completed.

Credit card rules for merchants

U.S. merchants that intend to surcharge are required to:

  • Notify Visa, Mastercard and your acquirer at least 30 days in advance of beginning to surcharge. Simply alert the Dharma Support team that you are going to implement surcharging, and we will coordinate your registration.
  • Limit surcharging to credit cards only (debit cards and prepaid cards cannot be surcharged) and limit the amount to your merchant discount rate for the applicable credit card surcharge.
  • Disclose the surcharge as a merchant fee and, for both in-store and online transactions, clearly alert consumers to the practice at the point of entry, the point of sale or transaction, and on every receipt. Merchants should also consider whether they comply with all applicable state and/or federal laws. Currently, several states have laws that prohibit or limit surcharging, including Connecticut, Maine, Massachusetts, and California (that’s new as of July 1, 2024).

More information can be found at www.visa.com/merchantsurcharging.

Dharma’s Built-in Surcharging Application


If you’re looking for ways to offset the cost of credit card processing,
MX Advantage for Surcharging is right for you!

MX Advantage

MX Advantage for Surcharging provides the ability to apply a payment card surcharge, also known as a checkout fee, which is an additional fee added to a customer’s bill when a credit card is used for payment. MX Advantage works for card-present and MOTO environments.

In addition, MX Advantage for Surcharging works seamlessly with the MX QuickPay, MX Payment Links, MX Invoice, and MX Quickbooks Sync. MX Advantage also seamlessly integrates with Dejavoo terminals for card-present payments with surcharging.

MX Advantage is available for Dharma Merchant Services Accounts on the TSYS platform for only $25/month.

Dejavoo Z11 for MX Advantage: $295

The Z11 countertop payment terminal provides an easy to use EMV payment experience for every business owner. With easy access to frequently used options in the “Favorites” Menu, and direct integration with MX Advantage for transaction surcharging, merchants love the ease of use of Dejavoo Z11. Please note, this terminal is only available for the TSYS platform. Accept every form of payment, plus implement surcharging, in the most secure way possible:

  • Accept EMV (chip) sales and magnetic stripe cards
  • EMV tip adjustment, so that you can take tips on your EMV sales
  • Allows for Chip+PIN, for the most secure transaction possible
  • Connect via IP or Dial, or utilize a wireless (WiFi) connection
  • Color, touch screen for quick and easy navigation
  • Take NFC payments, such as Apple Pay, Google Wallet, Visa payWave, and MasterCard PayPass
  • Designed to integrate with MX Advantage to seamlessly automate transaction surcharging

Dejavoo Z11 Terminal $295

Other ways pass to credit card fees onto customers

Surcharging isn’t your only option, there are three
other ways you can offset transactions costs.

Learn about Alternatives to Surcharging

Get a free consultation from Dharma

Tell us how to contact you, and a little about your business, and we’ll be happy to give you a free evaluation of your fees, and let you know how you can save with Dharma

Free Consultation