Qualpay provides the information below as a general overview, but it is not intended to be legal advice. You are encouraged to consult with your own legal counsel before implementing any fee program.
While the card brands differentiate between surcharges and convenience fees, there is generally no material difference between them under state laws prohibiting surcharging. Under state laws prohibiting surcharging, there is no material difference between a surcharge and a convenience fee. If state law prohibits the addition of a fee associated with the use of a payment card, then it generally does not matter what that fee is called, even though state laws tend to refer to those fees as “surcharges.”
Qualpay implements surcharges and convenience fees in accordance with federal and state laws and card brand rules. The table below shows how surcharges or convenience fees are applied based on your location and the location of the cardholder making the payment.
Note that surcharges apply only to credit card payments. In contrast, convenience fees may be applied to any form of payment within a payment channel.
| Location | Surcharge | Convenience Fee |
|---|---|---|
| Colorado, Oklahoma | No more than 2% of the transaction amount or the actual merchant discount rate | Any additional charge for the use of debit cards, cash, checks, or gift cards is prohibited |
| Maine, Massachusetts, Connecticut, Puerto Rico | Prohibited | Prohibited |
| California, Minnesota | Surcharges must be included in the listed or advertised price | Follow state laws and card brand rules |
| Louisiana | Follow state laws and card brand rules | Prohibited on debit cards |
| All other U.S. States & Territories | Follow state laws and card brand rules | Follow state laws and card brand rules |
| U.S. Armed Forces | Qualpay does not apply surcharges to payments using U.S. Armed Forces addresses | Qualpay does not apply convenience fees to payments using U.S. Armed Forces addresses |
| Non-U.S. States & Territories | Qualpay does not apply surcharges to payments using non-U.S. cards | Qualpay does not apply convenience fees to payments using non-U.S. cards |