Service fees or convenience fees are additional compensation for facilitating the transaction. To charge fees, you must be eligible to charge the Visa Service Fee and MasterCard Convenience Fee.
The Visa Service Fee and MasterCard Convenience Fee can only be charged in card not-present transactions (online and MOTO), and only for specific Merchant Category Codes (see table below). Visa and MasterCard also specify that the fee charged can be up to 1.50% of eligible debit card transactions, and up to 2.50% for eligible credit, prepaid, and international card transactions.
Eligible Merchants (MCCs)
|Visa Service Fee & MasterCard Convenience Fee Eligible MCCs|
|Service Fees are allowed for these MCCs:
4900 – Utilities
6513 – Property Management, Rent
8211 – Private Elementary, Secondary Schools
8220 – Universities and Colleges
8351 – Childcare
9222 – Fines
9311 - Taxes
The Service Fee/Convenience Fee:
- must be disclosed to the cardholder before the transaction is completed, and the cardholder must be given the option to cancel the transaction without penalty.
- must be recorded as a separate item on the transaction purchase receipt (see next section).
- must not be identified as a "Visa or MasterCard Fee".
- must be assessed on the final transaction amount, after all discounts and rebates have been applied.
- must be the same for all similar card products, regardless of the issuer.
- may be applied on recurring transactions.
For more details, check the specific rules for each Payment Card Network.
How to Display the Service/Convenience Fee on the Receipt
To display the Service Fee, you must submit the service fee amount with your transaction request. You can do this by adding a Custom reference field variable in the email receipts template.
Add Custom Reference Field
In the email receipts template, add the variable %ref1% and call it Service Fee. This image shows what the receipt template looks like after it is modified.
The value associated with this variable must indicate the amount of the service fee. When this value is passed in the transaction request, it can be included in the receipt by using the same variable name.
A $40 credit card transaction with a 2.50% service fee charge would be $1.00. The 1.00 is stored in Bambora's system as the value for the ref1 variable. This is how to submit your transaction request (see bolded variable at the end of the request):