Processing and Surcharge Fees

A comprehensive guide to enabling and managing processing fees (surcharges) on Cashflow.io for credit card and EFT/ACH transactions, including regulatory considerations

Introduction

Processing fees, also called surcharges, allow merchants to recover the costs associated with credit card payment processing by passing these fees on to customers. This helps businesses better manage their expenses while maintaining pricing transparency.

Activating surcharging on Cashflow.io provides complete transparency by clearly displaying any additional fees to customers before they complete a payment. This ensures compliance with consumer protection laws and builds trust by avoiding unexpected charges.

By adding a processing fee to a transaction, you can reduce business expenses and add to your bottom line.

Regulations on Processing Fees (Surcharges)

Surcharging regulations vary by region and transaction type. It’s important to understand these rules to ensure legal compliance:

• Canada (excluding Quebec): Most provinces allow surcharges on credit card transactions, capped at a maximum of 2.4% of the transaction amount

• Quebec: Consumer protection laws prohibit surcharging in B2C (business-to-consumer) transactions. However, surcharging is permitted in B2B (business-to-business) transactions.

• United States: Most states allow surcharges on credit card transactions, generally capped at 3%, though some states prohibit surcharging altogether. Merchants must follow state-specific regulations and may be required to register or notify credit card networks before implementing surcharges.

Enable and Configure Processing Fees in Your Account

1. Click on your Company Name on the top right corner and click on Settings.
2. Click on Credit Card Processing OR Electronic Cheques Processing (eCheques).
3. Find the Gateway you want to apply the processing fee and click on the Pen icon to edit.
4. Toggle the Add Processing Fees to YES and enter either the fixed amount or a %.
5. Click Submit.