If you’re looking for a way to offset the cost of credit card processing, surcharging might be a good fit. This article walks you through what surcharging means, what rules to follow, and how to enable it in your Payments Manager+ account.
⚠️ Before you begin: Know the rules
Surcharging is regulated by card networks and state laws — and it’s your responsibility to make sure you’re following the requirements where you do business.
PM+ helps protect you by automatically enforcing some of these rules, but here's what you need to know:
| Rule or Regulation | What PM+ does | What you need to do |
|---|---|---|
| You can only apply a surcharge to credit cards — not debit, ACH, or prepaid cards | PM+ blocks surcharges on ineligible payment types | – |
| The federal cap is 3% | PM+ won’t let you set a rate above 3% | If your state has a lower limit (like 2% in Colorado), make sure you follow it |
| Surcharging is prohibited in some states (as of April 2025: ME, OK, MA, CT) | PM+ blocks surcharges in those states | – |
| Each location must follow its local laws | – | Make sure you're applying the correct rules per location |
| You must clearly disclose the surcharge to customers | PM+ handles digital disclosures and receipt formatting | Post physical signage if you accept in-person payments |
| Visa requires your surcharge to be no more than your merchant discount rate (MDR) | – | Know your MDR and apply the lower rate if required |
💡 Surcharging can help you recover costs, but it’s important to think about how it might impact your customer experience. Consider what your competitors are doing and how your customers might respond. If you’re unsure, talk it over with your rep — we’re happy to help you think it through.
What your customers will see
- The surcharge will show up as a separate line item on their receipt
- Digital checkout will clearly explain the surcharge before they pay
- If you take in-person payments, you’ll need to post signage at the entrance and point of sale
✅ Getting approved to surcharge with PM+
Before you can start applying surcharges, there’s a short approval process to make sure all the requirements are met.
Step 1: Submit the Surcharge Request Form
Reach out to your rep or our support team to request the form. You’ll also need to notify the card brands 30 days in advance before enabling surcharges.
Step 2: Wait for confirmation
After the 30-day notification period, we’ll enable surcharging in your PM+ account within 1–2 business days, as long as everything checks out.
Step 3: Start applying surcharges
Once surcharging is enabled, set your default rate in PM+ to automatically apply it to eligible credit card transactions. Steps are in the next section.
⚙️ Setting your surcharge rate
Once your account is approved for surcharging, follow these steps to configure your default rate:
Step 1: Open your surcharge settings
Go to Settings > Configuration > Surcharge. This is where you’ll manage everything related to surcharging in your PM+ account.
Step 2: Enable surcharging and choose your rate
Toggle the surcharge setting to On. PM+ will default to the federal maximum of 3%, but if you need to charge less (based on state regulations or personal preference), just enter your preferred rate (up to 3%) and click Save.
Step 3: Start accepting payments as usual
Now that surcharging is on, you can continue using invoices, payment links, payment forms, and Virtual Sell like you normally would. You’ll see a reminder that surcharging is enabled for credit card payments — and so will your customers.
When a customer checks out with a credit card, they’ll see a pop-up that displays the surcharge amount and updated total before they finalize their payment, ensuring full transparency.
🙋 FAQs
Can I apply surcharges to debit or prepaid cards?
No — surcharges only apply to credit card payments. PM+ will automatically block it for other payment types.
What if I try to set a surcharge above 3%?
You’ll get an error. PM+ won’t allow rates above the legal limit.
I operate in multiple states. Can I use surcharging in all of them?
Only in the states where it’s allowed. Each location needs to follow its own state’s rules.
Do I really need to disclose the surcharge?
Yes. Failing to disclose it properly — including on receipts and at the point of sale — can lead to fines from card networks. These fines start at $1,000 and you’re responsible for covering them.