Successful Acumatica resellers always look for new ways to delight their Acumatica customers. One of the best ways is to help them save money. Learn how to cut costs with Acumatica payment processing surcharging and fee recovery. As the cost of goods, services, and labor continue to increase, fee recovery has become a popular method to counter those increases. It's a win-win: merchants lower operating costs and their customers can use their preferred payment method. In this article, we'll review the basics to help your Acumatica customers get started with fee recovery and surcharging within Paya's Acumatica integrated payments.
Surcharging and fee recovery have distinct meanings. Surcharging applies only to credit card payment fees, while fee recovery can cover other expenses. Their purpose and regulation differ.
Surcharging helps Acumatica merchants in B2C transactions cover credit card processing costs. It adds an extra fee when customers pay with a credit card, allowing the merchant to offset the fees. These fees are tied to payment method costs and are subject to industry regulations. The charge is displayed on the receipt.
Acumatica merchants can avoid credit card processing costs by implementing fee recovery and passing on interchange fees to customers during payment. Paya merchants using integrated payments with Acumatica can utilize the recovery fee option to shift the burden of credit card processing fees onto their customers.
Many businesses add surcharge fees to their prices to offset credit card processing costs. Alternatively, some companies opt for the fee recovery method, directly passing on additional expenses, such as government fees, taxes, regulatory compliance, and operational costs, to their customers. This method is typically applied in B2B transactions and provides transparency by displaying the fee beforehand on the invoice. It is worth noting that surcharging is another approach to cover processing fees, but customers are typically unaware of this fee beforehand.
Before implementing surcharge recovery fee collection, it's essential to understand the guidelines and restrictions. Surcharging regulations vary by country, state, and even individual merchant policies. In the United States, surcharging is regulated by federal and state laws, with the U.S. Supreme Court ruling in favor of merchants' ability to surcharge credit card transactions in 2017. Stay updated on any amendments to these laws and review your state's regulations before implementing a surcharge program.
To implement fee recovery surcharges with Visa or MasterCard (or both), visit the Paya Knowledgebase page or contact Paya Support for up-to-date information - 800-261-0240, Press 1.
Please note that regulations regarding surcharging and recovery fees may change. Your Acumatica end users should consult with their financial advisor for any possible restrictions. As always, Paya will assist you as an Acumatica reseller to get help setting up these capabilities for your Acumatica customers.
Paya's partnerships with Acumatica resellers/VARs and ISVs are deeply rooted in trust. Our core focus is providing tools, resources, and dedicated support you can rely on to retain and acquire new customers. Paya differentiates itself by working closely with our Acumatica resellers, involving our experts early on to understand your Acumatica end users' processes and requirements. This allows for Acumatica end users to quickly get up and running, optimizing billing and invoice processes, providing more payment options and flexibility to customers, and improving back-office efficiencies.
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