This white paper explains how merchants can apply convenience fees, service fees, and surcharges to offset credit card processing costs. Convenience fees are charges for using an alternative, non-standard payment channel (like online or phone), while service fees are similar but limited to government and education merchants. Surcharges, distinct from convenience fees, apply directly to credit card transactions to cover processing costs but are regulated, capped at 3%, and prohibited in some states. Each card brand—Visa, Mastercard, AmEx, Discover—has specific rules, making compliance essential. Done correctly, these fees can generate significant savings for merchants.

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