Compliance guide for enabling the payment technology fee

When enabling the payment technology fee , businesses must follow federal regulations, state laws, and card network rules to avoid penalties and legal issues. This guide provides essential compliance information based on current regulations and industry best practices.

Disclaimer

This is not legal advice. Consult qualified counsel for your jurisdiction.

General guidelines

The payment technology fee cannot be applied to debit or prepaid cards.

Maximum payment technology fee limits

• Visa: 3% maximum cap
• Mastercard: 4% maximum cap
• Recommended standard: 3% maximum

Network rules (US)

• Mastercard: Pre-registration required. Submit the form 30 days before go-live.
• Visa: No pre-registration required. Follow Visa’s payment technology fee guidelines .
• Others (AmEx, Discover): Review their terms if you accept them.

How to implement

Legal and policy

As this is simply a feature offered by TaxDome, we suggest seeking independent counsel on eligibility and legal requirements within your state before enabling the payment technology fee.

Registration

• File Mastercard registration 30 days in advance.
• Review Visa and other network rules.

Client communication

• Give advance notice (approximately 30 days) if changing pricing.
• Provide fee-free alternatives (ACH, check, etc.).

Example

$1,000 invoice with a 3% payment technology fee → client pays $1,030.

If your underlying card fee is 2.95% + $0.30 = $29.80, the fee covers it. Don’t charge more than your actual cost.

References

• Mastercard payment technology fee rules
• Visa U.S. payment technology fee Q&A
• LawPay Overview of State Rules

Share

Link copied