Credit card Surcharges B2B sales

Hey guys I have been doing some reading into the new rules regarding credit card surcharges. The rules do not apply to to B2B transactions but it is a bit of a muddle for example if baying with a Business card business can still charge surcharges that do not equate to more than those charges by the merchant services. There is an allowance for a small difference but businesses are not to profit out of the surcharges just meet overhead costs. However if they pay with a consumer card then you business can not charge a surcharge.

We are left with 2 options abolish card surcharges and inflate costs across all our invoices or continue charging surcharges as we are only sell B2B. I am probably going to continue with surcharges. What would be beneficial is that if someone elects to use a onlne gateway we could have a dialogue presented to them about the charges. Either to advise that in compliance with the new ruling we have abolished surcharges / added in a service charge / continue to charge a surcharge.

It would be even better if they were prompted “Is this a consumer sale” or “business 2 Business sale” our business would default to b2b. If they select “consumer sale” no charges would be added and the option to append a separate charge like just eat and the like do… If they select B2B the current charges would be added.

Relevant links

Personally I think you’ll have a hard time enforcing this, it’s very much reliant on your clients being honest. Once people catch on that selecting B2C waivers the surcharge I think many will abuse it. Then are you likely to have that awkward conversation later to try to recoup the difference?

The only correct way to implement this is at the checkout level with your card service provider. At the point the client selects their card type, that is when any configured surcharge should be applied. Aside from SagePay, I don’t think many payment processors support this right now, although perhaps that will change in light of PSD2?

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