What is a surcharge?

A surcharge is an additional fee added to the total of the items the consumer is purchasing to cover the cost of the credit card transaction, this is also known as a “Checkout Fee.”

What do I need to do in order to surcharge?

Register with Visa, MasterCard & Discover. Notify your processor and make sure they allow surcharging. Know the surcharging rules. Know if your State allows for surcharging.

Do I need to register with American Express to surcharge?

No. American Express does not require a registration form.

Can I surcharge a debit or a pre-paid card?

No. Credit Cards are the only cards that can be surcharged.

Can I surcharge a debit card if I run it as a credit card?

No. A debit run as a “credit” is still a debit card.

Can I accept debit if I surcharge?

Yes. If you want to accept debit cards then the standard rules for processing apply, the merchant will cover the cost of a debit card transaction, which carry the lowest transactions fees in the Interchange table.  

Is there a limit to how much I can surcharge?

Yes. Your surcharge cannot exceed your cost of acceptance or 3%.

Do I have to tell my customers I am surcharging?

Yes, if you are surcharging you have to tell your customers before you complete the sale. You also have to have signs up and disclose the surcharge clearly on the receipt.

Can anyone in the US Surcharge?

No. There are currently 6 states that prohibit surcharging. Non-surcharging states are Maine, Connecticut, New York, Massachusetts, Pennsylvania and Oklahoma.

What if the customer is from a non-surcharging state?

Surcharging rules are controlled by the state in which the business is located. If the state allows surcharging, the merchant can surcharge regardless of if the consumer is from a non-surcharging state.

Is a "Surcharge" or "Checkout Fee" the same as a "Convenience Fee"?

No. A Convenience Fee is a fee that is added to your bill for the convenience of paying in a way that is not standard for the merchant. Movie theaters for example, generally sell tickets face-to-face at the theater but if you purchase your tickets online there may be an additional Convenience Fee.

How long can an Authorization hold last?

Authorization could be capture anywhere from 1 to 8 business days after the transaction date depending on the bank’s policy. In the case of credit cards, holds may last as long as 30 days, depending on the issuing bank.

• If the authorization fails during capture, the merchant should perform a new authorization before attempting to capture again.

How Strictly Prevents Chargebacks?

Enhancing Payment Security with 3DS, AVS and CVV2 Verification to Prevent Chargebacks as Fraud Prevention Tools.

At Strictly, we understand the importance of minimizing chargeback rates for your business. We are dedicated to providing advanced security measures to protect your transactions and ensure a seamless payment experience for your customers. Three key features we implement to prevent chargebacks are 3-D Secure (3DS), Address Verification Service (AVS) and Card Verification Value 2 (CVV2) verification.

What is 3-D Secure (3DS)?

3DS, helps prevent online fraud with card-not-present transactions via frictionless authentication.

When enabled, a cardholder is required to authenticate their identity before the transaction can be completed.

How does 3DS work?

1. The cardholder enters their card information to complete payment.​

2. If the card-issuing bank deems the transaction is low-risk, they approve the transaction.​

3. If the card-issuing banks deems the transaction high-risk, they may request additional verification. Verification methods vary by bank but are user-friendly for genuine cardholders.​

4. Once the cardholder is authenticated the bank approves the transaction.

What are common authentication methods?

• The cardholder may need to enter a passcode that the bank sends to their designated email address or phone number.​

• The cardholder may need to provide answers to questions that only the real cardholder knows.​

• The cardholder might need to use a biometric authentication method (fingerprint, voice, face recognition).​

Address Verification Service (AVS):

AVS is a fraud prevention system that cross-references the billing address provided by your customers with the address on file with their credit card issuer. When a transaction is processed, the AVS checks if the entered billing address matches the one associated with the card. If there's a mismatch, the transaction may be declined or flagged for further review.

By utilizing AVS, we can effectively:

1. Detects and prevents fraudulent transactions, as fraudsters may not have access to the correct billing address.

2. Reduce chargebacks due to unauthorized transactions.

3. Enhance customer trust by ensuring their sensitive information is being handled securely.

Card Verification Value 2 (CVV2) Verification:

1. CVV2 is a three-digit or four-digit security code found on credit and debit cards. This code acts as an additional layer of security, verifying that the customer has the physical card in their possession during the transaction.

2. By implementing CVV2 verification, we can:

3. Prevent fraudsters from using stolen card numbers without the actual card.

Reduce the risk of chargebacks resulting from fraudulent transactions.

Provide an extra layer of security for your customers, assuring them that their card information is protected.

Incorporating 3DS, AVS and CVV2 verification into our payment processing system enables us to significantly reduce the likelihood of chargebacks and fraud. By safeguarding your transactions with these security measures, strictly helps you maintain a secure and trustworthy payment environment for your customers.

Should you have any further questions or concerns regarding chargeback prevention or our security features, please don't hesitate to reach out. We're here to support your business and ensure a smooth payment experience for you and your customers.