Can I pass along credit card processing fees to my client?
The short answer is no.
To comply with all state laws and card issuer policies, invoices on AdvicePay cannot include processing fee surcharges. Here's why:
1. Surcharges on all
debit card purchases are illegal in every state. When it comes to
credit card surcharges, 10 states — California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas – have made them illegal.
AdvicePay accepts both debit and credit cards when clients pay an invoice using a card. To allow surcharges would mean devoting significant resources to the close tracking of who is paying by debit, who is paying by credit, who has been charged a processing fee, and the state laws that apply for each individual circumstance!
2. Further complicating matters are the rules by card issuers that they must be notified that you will be adding the fees, and customers must be notified by clear signage at checkout or in documented payment terms on contracts before they use their cards. Fees must also be noted as a separate line item on any receipts.
2. Further complicating matters are the rules by card issuers that they must be notified that you will be adding the fees, and customers must be notified by clear signage at checkout or in documented payment terms on contracts before they use their cards. Fees must also be noted as a separate line item on any receipts.
AdvicePay currently isn't designed to monitor -- and then enforce -- these transactions for each firm account. To remain a compliant billing option for advisors no matter where they're located or how their clients choose to pay, we've found that disallowing the passing on of card processing fees through our platform to be the best solution.
If you have any questions about this policy, please don't hesitate to contact us!
If you have any questions about this policy, please don't hesitate to contact us!