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      Kimoby Pay Surcharge

      You have the option to add a surcharge to all of your payment requests. This allows you to pass on Kimoby Pay-related credit card transaction fees to your customers, should you choose to do so. 

       

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      Things to Consider

      Before activating the surcharge, it is important to consider a few things:

      • Legal Limitations and Restrictions: First and foremost, you must check your provincial/state and federal laws before enabling the surcharge. All States and Provinces have limitations and regulation around surcharges and in some cases it is completely restricted.
      • Registration with Credit Card Networks: Some Credit Card Networks (Visa, Mastercard, AmEx, etc) may require businesses to register with them before applying a surcharge. Failing to comply with their regulations could lead to penalties or issues with payment processing. Check with these Credit Card Networks to ensure you're meeting all necessary requirements for your region.
      • Customer Perception: Introducing a surcharge, even a small one, can impact how customers perceive your business. Some customers may understand the need, while others might see it as an unexpected or unjustified fee. Consider how it aligns with your business and whether it could impact trust or loyalty, especially with repeat customers.
      • Financial Impact: Evaluate whether the surcharge will meaningfully offset costs. Weigh the potential financial benefit against any risk of lost business or customer dissatisfaction. Will it make a noticeable difference to your bottom line, or is the return minimal compared to the potential impact on customer satisfaction?

       

      How is this different from a processing or convenience fee?

      A surcharge is added to offset the merchant's cost of credit card processing. It only applies to credit card transactions and is regulated by card networks and local laws.

      • A convenience fee is normally charged for using a non-standard payment method.
      • A processing fee is a general term that can cover administrative or handling costs. 

      Both convenience and processing fees can be applied to various payment types and their legality varies depending on the context and jurisdiction.

       

      How is Kimoby's surcharge legally compliant?

      • Our solution only applies the surcharge to credit transactions. Kimboy Pay will automatically detect if the customer uses a credit card versus debit or prepaid card.

      Note

      A surcharge cannot be added to an invoice when the customer chooses to finance with Affirm, as this is prohibited by Affirm.

      • We generate a legally compliant receipt. There is an extra line added to the receipt with the name "Surcharge Amount".


      Note

      Since the receipt Kimoby generates has the Surcharge Amount on it, this may render the receipt generated by your DMS invalid, or out of line with local regulatory requirements, unless it is updated to include the credit card surcharge as well. Please check the applicable regulations in your jurisdiction.

      • After clicking on the payment link, the customer will see this statement under the invoice amount: "Save (amount) by paying with cash, debit, or check"

       

      Can I set a different rate depending on my credit card?

      It is not possible to set a different rate for each credit card type. This is illegal in many jurisdictions and against most credit card network rules.

       

      Can I just add or waive the surcharge on specific transactions?

      The surcharge option can be turned on or off by an account administrator, and the change only takes a few seconds to apply. However, it is not recommended to turn it off and on repeatedly as it can cause errors, especially if the option is toggled while a customer is checking out.

      If you want to deactivate the surcharge for a customer, the best option would be to manually add a discount to their bill, canceling out the surcharge amount.

       

      How do I activate the surcharge?

      To activate the surcharge on all Kimoby Pay transactions:

      1. Click the Pay tab.
      2. Click the Settings sub-tab.
      3. Under Surcharge Settings, check the Enable Surcharge box.
      4. Set the surcharge rate. Check your local laws for restrictions on the surcharge amount.