Payment Surcharge Legislation
From the 13th January, 2018, the Payment Services Regulation 2017 comes into effect. This regulation implements the EU Payment Services Directive II (PSD2), which has the aim of setting out a common legal framework for businesses and consumers when making and receiving payments within the European Economic Area (EEA).
From January 13th, 2018, it will be prohibited to add a surcharge, when accepting payments on non-commercial cards. The directive does not apply to cash, cheques, bank transfers or direct debits that are not in euros. Surcharges on payments using commercial/corporate cards is permitted, provided that the surcharge does not exceed the cost incurred by the merchant.
We recommend that you determine whether these regulations will apply to your organisation, and whether you are therefore allowed to charge a payment surcharge.
Payment Surcharges in WebCollect
WebCollect allows you to set a payment surcharge (as a percentage or fixed amount) for each payment method. We have a wide range of organisations using the software, some of whom are not prohibited from charging a payment surcharge. It is up to the individual organisation to determine whether there are any legal restrictions or prohibitions that apply to the organisation when using this feature.
