Visa Convenience Fee Guidelines Visa guidelines state that a surcharge is different than a convenience fee. It prohibits merchants from imposing surcharges, as it considers it a discrimination based on a payment type. However, it allows merchants to add convenience fees to debit and credit card transactions.

Can merchants charge a debit card fee?

Surcharges cannot be imposed on debit cards or prepaid debit transactions. If merchants add a surcharge, they must decide to add them at the brand or product level — but not both. A brand level surcharge adds the same fee to all credit card transactions from the same payment network, such as Visa or Mastercard.

Is it legal to charge a fee on a debit card?

It must be a flat fee regardless of a transaction amount. It must be a part of a total transaction. Ten states — California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas — have made it against the law to charge a fee on credit card processing transactions.

Which is the only bank that does not charge for debit card?

Most banks like SBI, HDFC, PNB, yes bank and Axis bank charges a fee of Rs 50 for its debit card. However, there are no charges applicable to customers generating an instant PIN, wherein the customer sets up the PIN using net banking or mobile banking, according to the bank’s website.

Are there states that do not allow credit card surcharges?

Eleven states—California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas—and Puerto Rico have laws that prohibit merchants from charging consumers with surcharges on credit card transactions.

What are the laws on debit card surcharges?

Statutes Related to Credit of Debit Card Surcharges STATES PROHIBITION ON CREDIT/DEBIT SURCHARGE: ALLOWS DISCOUNTS FOR CREDIT/DEBIT CARD U Ohio None None Oklahoma Okla. Stat. tit. 14A, §2-211 (1982) A. W Okla. Stat. tit. 14A, §2-211 (1982) A. W Oregon None None Pennsylvania None None