Surcharging is currently only available for select DaySmart Salon, DaySmart Pet, DaySmart Spa, and DaySmart Body Art cloud customers who have merchant accounts through DaySmart Payments via Stripe and have been invited into our beta program. General availability will be coming soon.
Overview
Surcharging through DaySmart Payments via Stripe allows merchants to pass on card processing costs by adding a fee to card transactions that their customers will pay. When customers pay this fee, the merchant will be able to keep the entirety of the cost of the transaction as income without having to pay card processing fees.
Requirements & Availability
Surcharging Terms & Conditions
You are fully responsible for any fines, penalties, or losses arising in connection with your failure to adhere to applicable surcharging requirements. Please review applicable laws around surcharging in your jurisdiction and card network rules before enabling this feature.
Surcharging is currently only available for merchants in the United States*, Canada, Australia, and New Zealand using DaySmart Payments via Stripe using the latest versions of the DaySmart Salon, DaySmart Pet, DaySmart Spa, and DaySmart Body Art cloud applications.
*DaySmart does not currently support surcharging in the following states/regions in the United States:
California
Colorado
Connecticut
Illinois
Maine
Massachusetts
Puerto Rico
Surcharging availability is subject to change at any time and may be removed from your account as rules and regulations change.
Rates
Surcharging will charge an additional fee, calculated by a set rate, to a customer on top of the total of the transaction amount. This rate is non-configurable by the merchant. If surcharging is added onto a transaction, you as a merchant will not pay card processing fees and they will be passed onto your customer. Surcharging will increase the card processing fee for an applicable transaction based on the rates indicated in your software, but you will not pay them, your customer will. If surcharging is not applied to a card transaction for some reason, you as the merchant will pay the card processing fee, but it will be based on your normal rates, not the rate used for surcharging.
Rates to calculate the surcharge fee added to transactions are as follows, depending on the country of the merchant account:
United States*: 3%
Canada: 2.4%
Australia: 4%
New Zealand: 4%
*Where supported
Surcharging rates are subject to change at any time.
Compliance
Merchants are responsible for following the disclosure requirements of all card networks accepted and their jurisdiction when surcharging is enabled.
Merchants who surcharge must display a clear disclosure of their card surcharge policy within their business. This must be inclusive of the rate that is used to calculate the fees of the surcharge. The rate can be found in your software under Surcharging Options.
Consult the rules of the card networks you accept and your jurisdiction for specific information on the requirements you must meet as a merchant that surcharges.
Card network requirements can be found below:
Visa (US)
Mastercard (US) *Disclosure form details can be found here
Supported Transaction Types & Terminals
Surcharging is supported for card present* and card not present transactions that are processed using DaySmart Payments via Stripe.
Surcharging is prohibited on debit card transactions in the United States and Canada. Customers will not be surcharged if a card used is determined to be a debit card in these regions.
*Currently surcharging is only available using the following terminals for card present transactions:
BBPOS WisePOS E
Stripe Reader S700
Surcharging is not available using the following terminals for card present transactions:
Stripe Reader M2
BBPOS WisePad 3
Tap to Pay on iPhone
Tap to Pay on Android
If you need to purchase a supported terminal, you can learn how to buy one with our help article.
Support for more terminals will be coming in the future as it becomes available from Stripe.
How to Enable Surcharging
Web
Web
Navigate to Settings
Click on the Card Processing dropdown > Settings option
Under Surcharging Options click the Enable surcharging toggle to turn surcharging on.
Note: You may not see the Surcharging Options section or see a message saying "Surcharging is not available for your account at this time." This means that surcharging is not supported in your region.
Read the Surcharging Terms & Conditions and click I Agree if you agree with the terms and conditions.
Mobile
Mobile
Tap More in the bottom navigation bar
Tap Settings
Tap Credit Card Processing Settings
Tap Surcharging Options
You may not see the Surcharging Options within the Credit Card Processing Settings page. This means that surcharging is not supported in your region.
Tap the Enable surcharging toggle to turn surcharging on
Note: You may see a message saying "Surcharging is not available for your account at this time." This means that surcharging is not supported in your region.
Read the Surcharging Terms & Conditions and click I Agree if you agree with the terms and conditions.
How to use Surcharging
Once surcharging is enabled, a surcharge fee will automatically be added onto all applicable card transactions. Surcharges will be shown in the application interface to both you and your customers when they are applied, shown on the terminal when a customer is paying for their transaction, and on all receipts.
Web Examples
Web Examples
Example of surcharge disclaimer when using the Credit Card option in Checkout
Example of a card surcharge applied showing in the Order Summary
Example of card surcharge applied showing on a customer receipt
Example of a card surcharge applied showing in closed appointment
Mobile Examples
Mobile Examples
Example of surcharge disclaimer when using the Credit Card option in Checkout
Example of card surcharge applied showing on a customer receipt
Example of a card surcharge applied showing in closed appointment
Terminal Examples
Terminal Examples
Example of message shown on terminal indicating a surcharge will be applied if using an applicable card
Example of approved transaction with card surcharged
Reporting
All surcharge fees collected within the selected time frame will be added into Card Surcharges section of the Sales Totals and Sales Tax by Range of Days report. This is not income you received, but can serve as a way to understand how much money in card processing fees was passed onto your customers in a given time frame.
FAQ
Q: Do I need to notify card networks that I am surcharging?
Q: Do I need to notify card networks that I am surcharging?
Yes, some card networks, like Mastercard, require notification that you are surcharging. Please read the Compliance section above to learn more about card network notification. Refer to our article here to learn more about Mastercard's Surcharging Disclosure Form.
Q: Do I need to inform my customers that I am surcharging?
Q: Do I need to inform my customers that I am surcharging?
Card networks and most jurisdictions require signage to be displayed inside of your business indicating that you are surcharging on card transactions and the rate of the surcharge. Consult the rules of your jurisdiction for specific information on the requirements you must meet as a merchant that surcharges.
Q: Can I disable surcharging for certain card transactions or certain customers?
Q: Can I disable surcharging for certain card transactions or certain customers?
No, surcharging can not be disabled for certain card transactions or certain customers. Once surcharging is enabled, it will be applied to all applicable card transactions.
Q: Why won't the application allow me to surcharge on debit cards?
Q: Why won't the application allow me to surcharge on debit cards?
Card networks and some jurisdictions prohibit surcharging from being applied to debit card transactions. This applies to transactions made in the United States and Canada.
Q: Can I modify the rate that is charged to the customer?
Q: Can I modify the rate that is charged to the customer?
No, the rate shown in the Surcharging Options section or page is the surcharge amount that will be charged to your customers and can not be changed by the merchant.
Q: Will I be charged card processing fees if I enable surcharging?
Q: Will I be charged card processing fees if I enable surcharging?
No, once surcharging is enabled, a fee will be added to all applicable card transactions based on the applicable rate and you will not be charged card processing fees for those transactions. If a card is not applicable for surcharging, you will pay the credit card processing fee for that transaction.
Q: Why does the application say "Surcharging is not available for your account at this time"?
Q: Why does the application say "Surcharging is not available for your account at this time"?
This is shown if surcharging is not supported in your jurisdiction.
Q: Why don't I see the Surcharging Options section or option?
Q: Why don't I see the Surcharging Options section or option?
If you don't see the Surcharging Options section or option within your credit card settings, surcharging is not supported in your jurisdiction.
Q: Can I disable surcharging after it has been enabled?
Q: Can I disable surcharging after it has been enabled?
Yes, you can disable surcharging the same way it was enabled by toggling the Enable surcharging toggle. This will disable surcharging on all card transactions going forward.
Q: Is surcharging applied to transactions using a customer's card on file?
Q: Is surcharging applied to transactions using a customer's card on file?
Yes, transactions using a customer's card on file are considered card not present transactions and will have surcharging applied to them.
Q: Is surcharging applied to deposit transactions taken online or in person?
Q: Is surcharging applied to deposit transactions taken online or in person?
Yes, deposit transactions taken online or in person will have surcharging applied to them.
Q: Is the surcharge applied on top of tips?
Q: Is the surcharge applied on top of tips?
Yes, the surcharge is inclusive of tips.
Q: Is the surcharge applied on top of taxes?
Q: Is the surcharge applied on top of taxes?
Yes, the surcharge is inclusive of taxes.
Q: Is surcharging available for merchants using DaySmart Payments via CardConnect?
Q: Is surcharging available for merchants using DaySmart Payments via CardConnect?
No, surcharging is not available to merchants using DaySmart Payments via CardConnect.