Visa has significantly revised its rules governing surcharge programs. Payment providers who offer surcharge or other cost-shifting programs to merchants (and the participating merchants) should carefully review the program to ensure it complies with the new rules. Notably, as anticipated (and in addition to other updates), Visa reduced the maximum surcharge amount permitted in the U.S. to be the lesser of the merchant's actual cost of acceptance or 3%(which was previously set at 4%). The updated rules also impose new transaction data requirements, which will enable Visa to identify when debit cards are being surcharged and monitor the amount of the surcharge. The industry has seen a marked uptick in Visa surcharge program enforcement actions over the past few months. In addition, Visa recently confirmed its continued opposition to surcharging practices generally. Accordingly, companies that support cost-shifting programs should be particularly mindful of these new rules. Please reach out to a member of Taft's Paytech and Payment Systems group for more information.
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