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Convenience Fee vs. Service Fee. Visa Operating Regulations section 5.2.E. state that except as specified otherwise for Tax Payment Transactions in Section 5.2.E.2, a Merchant that charges a Convenience Fee must ensure that the fee is:
Tax Payment Program Fee Requirements, they can be
found in Section 5.2.E.2 in the Visa Operating Regulations.
5.2.E.2 Tax Payment Program Fee Requirements (Effective October 4, 2008)
5.2.E.2.a A Tax Payment Program Merchant may charge a Convenience Fee for processing a Tax Payment Transaction, as specified in Section 5.4.K, if all of the following conditions are met:
- The Convenience Fee is a fixed or flat amount regardless of the value of the tax payment
- The Convenience Fee charged for a Visa Transaction is not greater than any fixed or flat fee charged for a transaction with any other payment card
- The Convenience Fee is clearly disclosed prior to the completion of the Transaction and the Cardholder is given the opportunity to cancel
5.2.E.2.b To qualify for the Debit Tax Payment Interchange Reimbursement Fee specified in Section 4.9.K, the Convenience Fee for a Visa Debit Card Transaction must be a fixed or flat amount not exceeding $3.95 per Transaction, regardless of the tax payment amount.
5.2.E.2.c A Convenience Fee may be charged for Tax Payment Transactions in either a Card-Present Environment or a Card-Absent Environment, including Recurring Transactions.
5.2.E.2.d A Tax Payment Program Merchant that charges a Convenience Fee must process the Convenience Fee amount as a separate Transaction.
5.4.KTax Payment Program (Effective October 4, 2008)
The Visa Tax Payment Program allows a Tax Payment Program Merchant to process Visa Card Transactions for the payment of certain eligible federal, state, and local taxes.
5.4.K.2.a To participate in the Tax Payment Program, an Acquirer must register the Tax Payment Program Merchant as specified in the Visa Tax Payment Program Guide.
5.4.K.2.b A Tax Payment Program Transaction must originate from a Tax Payment Program Merchant properly assigned Merchant Category Code 9311 (Tax Payments).
5.4.K.2.c An Acquirer must provide the Merchant Verification Value as specified in the VisaNet User’s Manuals.
5.4.K.2.d The tax payments must be limited to the following categories:
- Federal and State personal and small business income taxes
- Real estate/property taxes
5.4.K.2.e The Transaction may be processed in either a Card-Present Environment or a Card-Absent Environment.
5.4.K.2.f Visa reserves the right to disqualify a Tax Payment Program Merchant from participation in, modify, or discontinue the Tax Payment Program at any time.
5.4.K.3Service Fee Conditions
5.4.K.3.a A Tax Payment Program Merchant may assess a variable service fee for processing a Visa Consumer Credit Card or a Commercial Visa Product Transaction if:
- The Transaction is an eligible Tax Payment Transaction as specified in Section 5.4.K
- The service fee is clearly disclosed prior to the completion of the Transaction and the Cardholder is given the opportunity to cancel
- The service fee for a Tax Payment Transaction on a Visa Card is not greater than the fee charged to a Cardholder who pays with another comparable general purpose consumer credit or commercial payment card
5.4.K.3.b The service fee for a Tax Payment Transaction must be processed separately from the Transaction and not included with the amount of tax due.
5,4.K.3.c A Tax Payment Program Merchant must not assess a service fee for a Visa Debit Card Transaction, but may assess a Convenience Fee to process a Visa Debit Card Tax Payment Transaction, as specified in Section 5.2.E.2.
5.4.K.4Interchange Reimbursement Fee
5.4.K.4.a A Visa Consumer Debit Tax Payment Transaction qualifies for the Debit Tax Payment Interchange Reimbursement Fee as specified in Section 4.9.K and Section 9.5.A.2.
5.4.K.4.b A Visa Consumer Credit Card Transaction or a Commercial Visa Product Transaction qualifies for the appropriate Interchange Reimbursement Fee rates as specified in Section 9.5.A.1 or Section 9.5.B.