GoTab Credit Card Surcharging Program Details
GoTab has developed a new surcharging feature to help you offset the cost of credit card processing fees that allows operators to automatically pass costs to your customers while being in full compliance with current rules. As required by card brand rules, our surcharging feature does not apply surcharges to debit, prepaid, or gift card transactions (any method other than credit cards). Additionally, the maximum percentage allowable to be passed along to customers is 3.0%. If you choose to implement GoTab’s surcharging feature, you must comply with all card network requirements for surcharging. Some of the key requirements are outlined below, but please seek additional details directly from Visa and Mastercard for full compliance.
Eligibility: Beyond rules around surcharging only being applicable to credit card payments, there are a few additional eligibility restrictions to include:
- Merchants located in states where surcharging is prohibited are not eligible, including Connecticut, Maine, Massachusetts, and Oklahoma.
- Merchants outside of the US, including US territories are not eligible
- Merchants in Colorado can charge a maximum Credit Card Surcharge of 2.0%.
Signage & Informing Guests: All merchants instituting GoTab’s surcharging feature are required to display clear and visible disclosure signage at every entrance and point of transaction (e.g. storefront and registers). For accounts with surcharging in place, GoTab will surface notification of surcharges on guest checks, receipts and Customer Facing Displays. It is your responsibility to comply with all in-store signage requirements.
Additionally, GoTab recommends that you inform and train your staff on how Credit Card Surcharging works to effectively inform and answer guest questions. This includes disclosures on menus, in seating areas, etc. The most important detail to communicate is that surcharging applies to credit card transactions only.
We recommend that your staff be prepared for this inevitable question.
Guest: Why do I have to pay more to use a credit card?
The best answer in our opinion is something to this effect.
Staff: Credit cards cost up to 5% more to process than debit cards. Any type of credit card rewards are essentially paid for by us. Please use a debit card
Credit Surcharging Example Photos
Printed itemized receipt reflecting the 3% credit surcharge with credit card signature slip.
GoTab Customer Facing Display (CFD) reflecting the regular total, as well a credit total.
Credit surcharge fee reflected in the POS.
Credit Card Surcharging Laws
In addition to the card network surcharging rules laid out above, operators are required to adhere to federal and state credit card surcharging laws prohibiting deceptive or misrepresented disclosures. Currently, these states prohibit credit card surcharging: Connecticut, Maine, Massachusetts, and Oklahoma. Colorado currently may also limit the maximum credit card surcharge allowed. Laws are subject to change at any time.
Aside from any states prohibiting credit card surcharging, it is your responsibility to adhere to any other laws that may apply to your location. These laws can change at any given time so please be sure to verify if your establishment is subject to any additional requirements, disclosures or signage regarding credit card surcharging.
Risks of Surcharging Circumvention
GoTab's Credit Card Surcharging program allows you to properly assess credit card surcharges to a guest in compliance with credit card company rules and regulations.
GoTab may disable any fees or service charges on our platform that are intended to circumvent proper credit card surcharging. Such attempts pose a high risk of non-compliance with credit card network rules. Non-compliance can lead to card network fines starting at $1000 for the first violation, increasing quickly from there. As it stands, Visa is currently strictly enforcing non-compliance rules and other major card companies may soon follow in Visa's crackdown.