Surcharging is a tactic used by merchants to pass the cost of credit card processing fees on to the customer.
Cash discounting is an incentive merchants use to discourage the use of credit cards altogether.
Naturally, both of these tactics are viewed unfavorably by the banks and the card brands. Numerous rules and regulations exist to make it difficult for merchants to implement these tactics, and steep fines and penalties can be levied for non-compliance.
Now, Visa is cracking down even more by mandating that acquiring banks release the names of all processors who allow surcharging and cash discounting, so that Visa can audit their practices.
To learn more, watch our short “Inside Scoop” video on this page, or find additional details here.
The new compliance penalties are just one of many recent industry shifts.
The payments industry is constantly evolving, and it can be difficult to stay on top of new developments and updates.
Find more breaking news from the experts at Verisave here:
Verisave is a third-party cost-reduction firm specializing in merchant accounts and credit card processing fees.
Verisave is not a payment processor, and is not affiliated with any processors, card brands, or banks.
Verisave has more than 20 years of experience optimizing and monitoring the credit card processing industry.