If you use Storable Payments, you can add a surcharge fee to credit card payments. Surcharging enables you to charge tenants a percentage-based fee on the total transaction amount when processing electronic payments to offset costs associated with payment processing and credit card payment fees.
Tips for Implementation
- Be Transparent. Clearly explain that you are implementing a surcharge fee. Openness, why it is necessary, and clear communication can help reduce adverse reactions.
- Limit Fees. Implement a reasonable surcharge limit to prevent high transaction amounts from alienating customers.
- Offer Alternative Payment Methods. Inform tenants of alternative payment methods that do not incur a surcharge fee.
- Do Your Research. Compare local competitor practices and adjust your strategy to remain competitive.
Before making a decision, consider the financial benefits of passing on credit card fees versus the potential impact on customer satisfaction and retention.
FAQs
What amount can I set the surcharge for?
You can choose a percentage between 0% and 3%. Unless you use flat-rate processing, in which case, the maximum fee would be your Flat Rate Fee or 3%, whichever is lower.
You have two options when setting your surcharge fee:
- You can use the max if you always want to charge the max fee, which will fluctuate if your fees change (up to 3%).
- You can set a custom fee percentage that is less than the max to keep your fee stable.
Please note: Some states have laws around maximum surcharging fees that are not accounted for in your software. Your use of the surcharging feature must comply with all applicable laws, regulations, and card brand rules. By using this feature, you acknowledge and agree that we are not responsible for the foregoing. Consult with a legal professional to ensure your compliance.
Certain states prohibit credit card surcharging. Among those are:
- Massachusetts (MA)
- Connecticut (CT)
- California (CA)
- Maine (ME)
If your facility is located in one of these states, Easy will automatically prevent any surcharging.
Nevertheless, as laws, regulations, and rules change, you are ultimately responsible for complying with those that are applicable to you.
Is there anything I need to do before enabling surcharging in Easy?
If you accept Mastercard payments, you should complete the Mastercard Surcharge Disclosure Webform no later than 30 days before beginning surcharging. Select Product in the Type of Surcharge field on the form and enter Storable Payments in the Acquirer/Processor field. In the Payment Channel section, select eCommerce for online payments, Retail for in-person (EMV) payments, and Telephone for Mail Order / Telephone Order payments.
If you accept Visa payments, visit Visa’s Merchant Credit Surcharging page for more information. You are required to 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. Visit this page for sample compliant signage.
Other helpful resources include:
If you’ve previously created a recurring Fee to manually apply a credit card fee, we recommend disabling it and removing it from tenant accounts before enabling surcharging. This helps avoid charging tenants multiple fees.
I created a recurring fee to apply a credit card fee. How do I switch to using Easy’s new surcharging feature instead?
If you’ve been using a recurring fee to apply a credit card convenience or processing fee, and you want to switch to the built-in surcharging feature, follow these steps:
For each tenant who has that service or fee applied:
- Go to their Tenant Profile.
- Click Edit Recurring Fees.
- Click Delete next to the recurring fee.
Once removed, you can proceed with enabling surcharging to ensure future credit card payments include the surcharge automatically.
What payments will include the surcharge fee?
Once enabled, surcharge fees will be added to credit card payments made online, in-store, over the phone, etc. They will apply to new one-time, auto-billed, and card-on-file payments. Please note that third-party payment sources, such as a custom website, will not include a surcharge fee unless the third party offers the feature.
Will surcharge fees be applied to debit card payments?
No, the fee will only be applied to credit card payments. Card payment processing in Easy remains unchanged. Our software identifies the type of payment card, distinguishing between credit and debit cards. Surcharging is automatically applied to credit cards, and not applied to debit cards.
Where will customers see the surcharge fee?
The surcharge fee will be shown when taking a payment in Easy, when the customer makes a payment online, and on the payment receipt.
How does surcharging work when a tenant pays for multiple units?
If a tenant pays for more than one unit, the total surcharge will be split between the units' ledgers and rounded down for all ledgers except the last one. The last ledger gets the remaining amount to ensure the total adds up correctly.
Example for a tenant making one payment for two units:
- The tenant has booked two units and is making a combined payment of $1234.
- The total surcharge is 3% of $1234 = $37.02
- The payment is split equally across two ledgers -> $1234 ÷ 2 = $617.00 each
- Ledger 1 (Unit 1): $617.00 × 3% = $18.51= $18.00 (rounded down)
- Ledger 2 (Unit 2): Remaining amount = $37.02 − 18.00 = $19.02
How should I communicate with my tenants about this change?
We recommend communicating with your existing customers before enabling surcharging. You can find an example email template and help articles related to sending mass email below.
Example email template:
Dear [Customer Name],
We are writing to inform you of an upcoming change regarding credit card payments. Beginning [insert effective date], a surcharge of [insert percentage]% will be applied to all credit card transactions.
We are introducing this change to help offset the processing fees charged by credit card companies. We’re committed to transparency and want to ensure you are aware of this update in advance.
To avoid the surcharge, you are welcome to continue using alternative payment methods such as [e.g., debit cards, ACH/bank transfer, checks—modify as applicable].
We appreciate your understanding. If you have any questions, please feel free to contact us at [insert contact information].
Thank you,