Convenience fees are charged for the privilege of paying for a product or service using a non-standard method of payment. For example, movie theaters usually sell tickets in person at a ticketing window. If the movie theater also gives customers the option of paying for tickets online, the theater could charge a convenience fee for the online ticket orders. Customers are not paying for the right to use their credit card, but for the privilege of making a payment in a non-standard method.
A convenience fee is sometimes mistakenly referred to as a surcharge; however, there is a distinct difference between the two. A surcharge is charged for the privilege of using a credit card as a form of payment. A convenience fee is assessed for using a more convenient payment channel and is not limited to credit cards. It is imperative to understand which can and cannot be utilized, and in what circumstances.
Note: By default, convenience fees are not enabled. You may request this option to be added to your Qualpay account profile. To request this option, please contact the Qualpay Customer Support Team.
Guidelines for Applying Credit Card Convenience Fees
As a merchant, you may charge a convenience fee to credit card transactions under the following conditions.
- The Merchant must notify the customer of the convenience fee before finalizing the payment.
- All transaction receipts must display the amount of the convenience fee. If using the Qualpay Virtual Terminal, the receipt will comply with this guideline.
- The payment must take place in a non-standard payment channel.
- A convenience fee must be a flat, fixed amount.
- The convenience fee must be applied to all means of payment accepted through the non-standard payment channel.
- The convenience fee must be included in the transaction amount total.
- A convenience fee cannot be applied to recurring payments.
- The business collecting the payment may not be exclusively operating in a card-not-present environment.
Setting Convenience Fee Options For The Qualpay Virtual Terminal
- Select Administration
- Select Settings
- Select Payment
- Scroll down to the Virtual Terminal Settings section of the payment profile
In the Convenience Fee section, you can set if a convenience fee is required on Qualpay Virtual Terminal transactions. If the convenience fee is required, the toggle option will show in green. If the convenience fee is optional, the toggle will show in white.
You can also set the default convenience fee amount in the Convenience Fee section. To add the default convenience fee amount, enter the set dollar amount in the Default field. Once the amount is added, scroll to the top of the page and click Save Payment Profile.
Processing Convenience Fees On Qualpay API Solutions
To process a convenience fee using one of our API solutions, you must include additional parameters with your API call. Visit our Developer Center API page for the solution guide needed to identify and add the additional fields to your integration.