MITCHELL — A recent change to Visa's rules regarding surcharges on credit and debit card payments has left Mitchell-area businesses and consumers navigating a new landscape. The new regulations, which limit the service fees merchants can charge customers, have led to confusion and concern, particularly after an email from First Dakota National Bank last fall clarified the updated rules. ADVERTISEMENT Previously, many local businesses added a surcharge — a percentage added to a customer’s bill when they paid with a credit or debit card.
This surcharge helped cover the costs associated with processing card payments. Under the new Visa guidelines, however, merchants can no longer charge a fee just to cover card processing costs. Shelly Eilers, a senior vice president of digital banking solutions at First Dakota National Bank, explained the bank sent out the email to educate businesses about the changes.
However, the message caused confusion for some recipients, who initially interpreted it to mean that surcharges were no longer allowed. According to Visa's updated guidelines, businesses can still add a surcharge, but it cannot exceed 3 percent. The fee must be clearly disclosed to the customer, be limited to the actual processing costs and be applied equally across all payment methods.
For businesses that currently charge a surcharge, the email offered several alternatives, including adjusting prices to include processing fees, offering discounts for cash payments, which i.
