Visa Surcharge Changes: New 3% Cap

April 24, 2023 

Surcharge Changes – What You Need to Know

As of April 15, 2023, Visa has adjusted its maximum allowable amount for credit card surcharge from 4.0% to 3.0% in the United States and all U.S. territories. All merchants administering a surcharge of greater than 3.0% could now be subject to Visa compliance actions, including a non-compliance fee which can be $5000 or greater.

What is Surcharging?

Surcharges (read more here) are fees that a merchant adds to the cost of a purchase when a customer uses a credit/charge card.

Cash Discount Opportunities

In addition to surcharge programs, this new 3.0% cap will also apply to similar Cash Discount Programs (CDP), providing a more accessible, less costly entry point for businesses and their customers. Since CDP solutions became available to U.S. merchants in 2011, research has shown that:

  • Cash Discount Programs have no statistical effect on consumer behavior.2
    1. 99.2% of restaurant customers surveyed said that cash discounting was not an issue for them.
  • Customers understand that businesses’ operating costs have increased.
    1. 71% of consumers understand that the COVID-19 pandemic and the conflict in Ukraine have increased many business owners’ operating costs.

If you’re not sure whether a cash discount program is the right fit for your business but are interested in testing it out, Quantum FlexPay® may be a perfect solution.

Quantum FlexPay®

Rather than charging a 3% fee to every customer who pays using credit card, FlexPay® gives merchants the flexibility to absorb card processing fees themselves or apply a surcharge to the cardholder, per transaction. Merchants use this flexibility to:

  • Avoid raising prices.
  • Provide an automatic 3% discount on all sales made in cash.
  • Absorb transaction fees for specific products, services, or other circumstances.

Though all FlexPay® merchants have the ability to absorb transaction fees, our data reveals that merchants choose to apply the 3% surcharge 77% of the time, resulting in thousands in profit saved per year. This unique flexibility gives merchants the ability to control processing fees while also elevating customer relationships. No wonder over 98% of FlexPay® merchants stick with FlexPay® for the long haul.

You can learn more about our FlexPay® program here, or chat with one of our Payments Experts at 866-954-5915.

FlexPay by the Numbers


Reduced Fees

FlexPay merchants reduce processing fees by applying a surcharge 77% of the time.



Merchants stick with FlexPay as their permanent payments program 98% of the time.

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