Understanding “Convenience Fee” payment models.

Understanding the difference between compliant and non-compliant “Convenience Fee” payment models.

High Risk Merchant Processing

By Cleveland Brown, Chair of the ETA Payment Sales and Strategy Committee.
There has been a lot of movement in the payments industry recently regarding fee-based payment processing models. While there are compliant ways to implement these solutions, many non-compliant models exist.
Recently, we highlighted a pattern of surcharge programs masquerading as Cash Discount solutions. A similar trend is emerging with Convenience Fees models: There are solutions available on the market that add fees to purchases or payments as a separate transaction. While these programs are often billed as “Convenience Fee” models, charging a convenience fee as a separate transaction is expressly prohibited by the card brands.
Often times, ISOs, ISVs, and resellers are unaware of the non-compliance of the solutions they’re promoting, which opens their business to risks of liability and leading to potentially severe consequences.
Click here to read the full article.
Interested in contributing to payments industry thought-leadership? Apply to join an ETA committee for 2020 here

Leave a Reply

Your email address will not be published. Required fields are marked *