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A payment surcharge, also known as checkout fee, is an extra fee charged by a merchant when receiving a payment by cheque, credit card, charge card, debit card or an e-money account, [1] but not cash, which at least covers the cost to the merchant of accepting that means of payment, such as the merchant service fee imposed by a credit card company. [2]
These fees are set by the credit card networks, [1] and are the largest component of the various fees that most merchants pay for the privilege of accepting credit cards, representing 70% to 90% of these fees by some estimates, although larger merchants typically pay less as a percentage.
“The top debit card is the Chase card, which gives you the same near-perfect rate the bank does and one per cent cashback on spending in the UK and abroad,” Lewis said. ... Martin Lewis has ...
The settlement lowers interchange fees for merchants and also protects credit card companies from being sued over the issue again in the future. [23] That settlement was reversed. Currently one for US$6.24 billion is scheduled to go before the district court on November 7, 2019. [24]
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Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. In some cases, merchants may charge users a "credit card supplement" (or surcharge), either a fixed amount or a percentage, for payment by credit card. [77]
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