Payment method surcharges: what you can and cannot charge

Every payment method costs you a fee, and it is tempting to pass it on to the customer with a surcharge at checkout. European regulations greatly limit that possibility. This article is for guidance only: always check with your adviser.

The general rule in the EU

The second Payment Services Directive (PSD2), transposed in Spain by Royal Decree-law 19/2018, prohibits surcharges for the use of:

• Consumer cards subject to the European interchange fee regulation (the vast majority of personal debit and credit cards).
• SEPA transfers and direct debits.

Grey areas

Some methods do not clearly fit into those categories (some e-wallets, corporate cards, non-European methods). In practice, some stores apply a surcharge to PayPal, but the interpretation is disputed and consumer authorities may see it differently. If you do it:

• Show it before the customer chooses the method, not at the end.
• Make sure the surcharge does not exceed the real cost you bear.
• Check with your legal adviser.

Alternatives to a surcharge

• Include the average cost of payments in the price.
• Offer a discount for the method that is cheapest for you (for example, bank transfer or SEPA), which is generally allowed.
• Negotiate fees with your payment gateway as your volume grows.