![]() ![]() Visa, Mastercard and American Express have guidelines that merchants must follow if they want to process card transactions on their networks. Credit card network convenience fee guidelines For example, a business may apply a flat 10 cent discount when someone pays with cash, but offer no discount for card-based payments. However, merchants are allowed to offer discounts for customers who pay in cash rather than by card. Some states also have laws that ban or limit the use of credit card surcharges. Furthermore, Visa requires merchants to post signage at the point of sale that discloses the surcharge policy. ![]() Most issuers frown upon the use of surcharges, and Visa even requires merchants to notify it at least 30 days before a merchant intends to surcharge credit card sales. While credit card convenience fees are added on for completing a transaction remotely - like online, via mobile app or over the phone - surcharges are fees that merchants impose for using a credit card rather than cash during an in-person transaction. On the flipside, you can choose to pay utility bills without a fee if you choose a linked bank account or use your debit card instead. In many cases, you can pay with a credit card online, but you’ll be charged a flat fee of $1 to $3.50 for each payment. ![]() You will typically get charged a convenience fee, for example, for paying utility bills, such as your electric or gas bill. Average convenience fees are anywhere between 1 percent and 3.5 percent, but they can also come in the form of flat fees. What is a convenience fee?Ĭonvenience fees are charges levied for the privilege of paying for a product or service using an alternative payment method, such as a credit card. Read on to find out what credit card convenience fees are, how much they typically amount to and how to decide if they’re worth it. However, credit card convenience fees can apply to certain types of purchases, and they can chip away at your rewards or even wipe them out altogether.īefore you pay a credit card convenience fee, assess whether the added charge is worth it, and if paying with cash or debit might leave you better off. There are several reasons for paying with plastic, such as the convenience factor and the potential for rewards. ![]()
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