A Service Fee program is a flexible solution that can be leveraged to offset the cost of accepting all payments, not just credit cards. A service fee can be a flat fee or a percentage of the transaction – depending on the payment method. Unlike other Fee programs, there are no set caps or rules around specific service fee amounts. However, the fee must be reasonable as compared to the cost of processing the transaction. This gives organizations the flexibility to leverage a fee that matches its acceptance cost model.
Service fees are only available to a select set of organizational types as established by the card brands. Although they are allowed in both card present and card-not-present environments, there are specific card brand rules guiding the collection of them. Elavon’s Service Fee program help you remain compliant with these brand acceptance rules, while efficiently and effectively implementing service fees across your organization.
Let us help you fund the important programs
When working through budgets defined by grants and/or government funding, controlling costs can be a critical part of keeping vital areas properly funded. A Service Fee program provides organizations the ability to offset the costs associated with accepting card payments, allowing money previously allocated for card acceptance to fund parts of the budget that are most important to citizens. Compared to other Fee programs, Service Fee gives the Public Sector industry the flexibility needed to support their specific needs.
Compared to other Fee Programs
Credit Card Surcharge Fees
- Fee applied to credit cards only
- Requires point-of-sale and point-of-entry signage
- Calculated as a percentage of final total, not to exceed 4%
Convenience Fees
- No business type restrictions but cannot be charged by a solely online merchant
- Charged on all card-not-present payment platforms, offered as an alternative to a standard method of payment
- Fixed amount
- Must be disclosed clearly to the cardholder prior to completion of the transaction
The fine print
- While no signage is required, the service fee must be clearly disclosed as a fee charged by the government authority or educational institution to the cardholder. The disclosure must occur prior to completion of the transaction and allow the cardholder the opportunity to cancel
- The fee must be reflected on receipts
- The service fee can only be applied after all other discounts or rebates have been applied to the transaction
- It cannot be applied in conjunction with any other fee program
- Visa is the only card brand that requires registration, or intent to apply service fees, prior to program implementation
Supported organizational types
- 9211 Court Costs
- 9311 Taxes
- 9222 Fines
- 9399 Misc. Government Services
- 8211 Elem. and Secondary Schools
- 8220 Colleges & Universities
- 8241 Correspondence Schools
- 8244 Business Schools
- 8249 Trade Schools
- 8299 Educational Services
- 9223 Bail and Bonds
- 9399 Government Service
- 9402 Postal Services
