What is the Merchant Surcharge Program?
The Merchant Surcharge Program (MSP) is a feature designed to help you minimize payment processing expenses by responsibly and transparently passing credit card fees on to customers. MSP enables SimpleConsign users to automatically and compliantly apply a credit card surcharge to eligible transactions, providing a straightforward way to offset processing costs while maintaining adherence to applicable regulations.
How Does It Work?
MSP must be enabled both on the credit card processor’s side (SimplePay or Fiserv/CardConnect) and within SimpleConsign. There is an onboarding process with paperwork to complete. Once everything is in place, the system automatically:
- Applies your configured surcharge percentage to eligible credit card transactions.
- Excludes debit card transactions.
- Excludes transactions from customers located in areas where surcharging is prohibited by law.
Key Features
- Built-in legal safeguards based on location and card type.
- Automatic decision-making—SimpleConsign communicates with your processor to determine surcharge eligibility for each transaction.
- Clear surcharge display on EMV devices and customer receipts.
- Surcharge totals tracked in your Sales Reports.
Example: Credit Card Transaction with Surcharge
When a customer uses a credit card in a qualifying area, the EMV device displays the purchase total, including the surcharge, before they complete payment.
The receipt clearly lists the surcharge as a separate line item.
Example: Debit Card Transaction (No Surcharge)
Debit card transactions are exempt from surcharges. When a customer uses a debit card, only the purchase amount is charged, and no surcharge appears on the receipt.
Using the Estimate Surcharge Feature
For MSP-enabled stores using manual card entry (e.g., phone orders), the Estimate Surcharge button is available. This allows staff to preview the estimated surcharge before committing to the transaction, ensuring transparency for the customer.
These are the three main screens you’ll see when using the Estimate Surcharge button:
- Surcharge Estimate Displayed
- Invalid ZIP Code or Unsupported Card Type Error
If the system encounters a known issue (e.g., unsupported card or invalid ZIP), it will display a specific message to the customer.
Invalid Zip Code
Unsupported Card Type
- General Estimation Error
If another type of issue occurs, the message “Error estimating surcharge” will appear.
Benefits of MSP
- Offsets rising credit card processing costs
- Maintains transparency and compliance
- Preserves your store’s profitability
- Includes automatic legal safeguards based on location and card type
Enrollment & Onboarding Process
Already Integrated?
If you’re already using CardConnect/Fiserv or SimplePay:
- Submit a Surcharge Inquiry by creating a support ticket using the “Credit Card Processing” category
- Our support team will verify your processor and assist with next steps.
- Once fully approved by both SimpleConsign and your credit card processing company, MSP will take effect on the 1st of the following month, provided paperwork is submitted in time.
- If all docusigns and addendums are not completed 5 business days before the end of the month the Merchant Surchange Program will not be put in place. You will need to wait until next month.
Not Yet Integrated?
You can enroll in MSP as part of your initial processor setup with SimpleConsign.
Surcharge Rate Configuration
You can set your surcharge percentage (up to legal limits, typically 3%) with your integrated credit card processor. This setting is managed through your processor agreement, not within SimpleConsign.
Frequently Asked Questions (FAQs)
Q. Can I apply a surcharge to all payment types?
A. No. MSP applies only to eligible credit card transactions processed through SimplePay or Fiserv/CardConnect. Debit card transactions are always exempt.
Also if the customer presents a card that is from a state that doesn't support surcharge the transaction will not have a surcharge applied.
Q. Can I bypass the surcharge for a specific transaction?
A. Automatic exclusions apply for debit cards and restricted regions. You cannot bypass individual credit card transactions.
Q. Can I choose the surcharge percentage?
A. Yes, you can configure the percentage (up to the legal maximum) through your processor agreement.
Q. Will this upset customers?
A. Most customers are accepting of surcharges when they are disclosed clearly and handled professionally. Offering surcharge-free options like debit or cash can help.
Q. Are there risks for non-compliance?
A. SimpleConsign helps you stay compliant automatically, but it’s important to be aware of local and state regulations. Your processor also plays a key role in compliance.
Q. Where does the surcharge fee go?
A. The surcharge is processed along with your regular credit card deposits to your connected bank account.
Q. How do I know if surcharging is allowed in my area?
A. Your processor determines this automatically during each transaction. They handle legality checks based on region and payment method.
Q. Do processors like CardConnect or SimplePay support Apple Pay?
A. Many do, but please verify with your processor directly or through SimpleConsign Support.
Q. What if my EMV device asks Credit or Debit?
A. In most cases, the device detects the card type. If manual selection is required (e.g., PIN debit scenarios), the correct surcharge rules still apply.
Q. When will the surcharge be enabled for my business, and how long does the process take?
A. Surcharge activation is processed in the order requests are received within the first-of-the-month rate change queue. Processing typically takes a few days, depending on queue volume. To ensure your business is fully enabled for the Merchant Surcharge Program (MSP) on the first of the upcoming month, all required paperwork must be completed with CardPointe at least five business days before the end of the current month.
Best Practices
- Display required surcharge notices at checkout
- Use the Estimate Surcharge feature for manual entries
- Train staff on explaining surcharges to customers
- Monitor surcharge transactions in the Sales Report or through your CardPointe portal
Need Help or Ready to Enroll?
Submit a Surcharge Inquiry through SimpleConsign Support to get started or to learn more.
Additional Resources
Webinar Recording: Understanding the Merchant Surcharge Program
In this session, the SimpleConsign Team explains:
- How surcharging works within SimpleConsign
- Compliance requirements and best practices
- Setup and reporting walkthrough
- Answers to common customer questions