Credit Card Fees

Disclaimer

Laws governing the use of credit card fees vary by region. Depending on your organization’s location, you may face restrictions on the type of transactions to which credit card fees may apply, the maximum fee that can be charged, and/or the amount of disclosure that must be provided to the customer.

The below table summarizes the restrictions placed on credit card fees in a number of regions as of October 2025. This list is provided for reference only and does not constitute legal or financial advice.

Texada assumes no responsibility or liability for any loss, penalty, or damages arising from reliance on this information or from non-compliance with applicable laws or card network rules. We strongly recommend performing due diligence on the compliance requirements for your organization’s region before enabling credit card fees for your system.

Region	Status	Key Compliance Requirements
Australia	Permitted (with restrictions)	Surcharges are capped at the merchant's 'cost of acceptance' for each card type. The Reserve Bank of Australia (RBA) sets these standards. The fee must be clearly disclosed.
New Zealand	Permitted (with restrictions)	Surcharges must be reasonable and reflect the actual cost of processing the payment. The merchant must clearly disclose the fee to the customer before the transaction.
United States	Complex & Varies by State	Federally, surcharging is legal following a major legal settlement. However, several states (e.g., Connecticut, Massachusetts) still prohibit it. Where permitted, the surcharge is typically capped (often at 4% or the cost of acceptance) and must be clearly disclosed.
Guam	Permitted	As a U.S. territory, Guam follows federal rules. There is currently no specific territorial law banning surcharging. The same caps and disclosure rules as the mainland U.S. apply.
Canada	Permitted (with restrictions)	As of late 2022, merchants are permitted to surcharge. However, card networks have imposed a cap (e.g., 2.4%) and require advance notice and clear point-of-sale disclosure.
Germany (EU)	Prohibited	The EU's Payment Services Directive (PSD2) bans surcharges on most common consumer credit and debit card payments (including Visa and Mastercard). This is a strict prohibition.
Singapore	Prohibited (in practice)	While not strictly illegal, card network agreements in Singapore almost universally prohibit surcharging. The Monetary Authority of Singapore (MAS) discourages the practice. Offering a discount for cash is the compliant alternative.
Vietnam	Prohibited (in practice)	Surcharging is generally prohibited by merchant agreements with acquiring banks. It is not a common or accepted practice. Local legal advice is essential here.

Introduction

A credit card fee, also known as a processing or convenience fee, is a small charge added to payments made by credit card to offset the processing fees charged by credit companies. In Financials (Classic and Next), credit card fees can be configured to be charged automatically when credit card payments are made.

The following article will cover everything you need to know about configuring and using credit card fees.

This feature is only available for systems using Payments. If you are interested in incorporating Payments with your system, please contact your Texada account representative.

Configuration

Credit card fees can be configured via the Software Integration Parameters - Texada Pay utility in Financials (Classic), at System Maintenance → Configure System Settings → System → Company Parameters → Software Integration → Texada Pay → Credit Card Fees.

Convenience %: The amount of the credit card fee that will be applied to payments, expressed as a percentage of the payment amount. For example, a Convenience % of 2.000 will add a $2 fee to a $100 payment.
Convenience Description: The description of the credit card fee line item as it will appear on invoices.
Convenience Revenue Account: The revenue account to which credit card fees will be posted.
Convenience Fee Optional: Uncheck this box to make credit card fees mandatory on all payments. If unchecked, the user will not have the option of unchecking the “Card Fee” checkbox in the Add Payment window in Financials (Next).

Invoices (Next)

Once credit card fees are enabled in your system, a Card Fee line item will be included in the Payments panel of the Create / Edit Invoice screen in Financials (Next). This line item indicates the amount that has been paid toward credit card fees on the current Invoice.

Remember that the name of this line item is determined by the value of the “Convenience Description” field in Financials (Classic).

Add Payment Window (Next)

A “Card Fee” checkbox will also appear in the top-right corner of the Add Payment window in Financials (Next):

Check this box to charge a processing fee for the current payment. Uncheck this box to waive the processing fee. Remember that if the “Convenience Fee Optional” option is unchecked in Financials (Classic), you will not have the option of unchecking this box.