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.
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Interested in contributing to payments industry thought-leadership? Apply to join an ETA committee for 2020 here.