Enabling Surcharge in Cartwheel

About this Article

This article walks you through how to enable and configure credit card surcharging with Cartwheel. It does not constitute legal or compliance advice. 

⚠ Credit Card Surcharge Disclaimer

The credit card surcharge feature may be subject to applicable laws, regulations, and card network rules, which can vary by jurisdiction. By enabling this feature, you acknowledge and agree that it is your sole responsibility to understand and comply with all such legal and regulatory requirements. You are strongly encouraged to consult with qualified legal counsel prior to activating or using this feature.

Cartwheel does not provide legal advice and makes no representations or warranties regarding the legality, enforceability, or compliance of any surcharge practices implemented through its platform. By proceeding, you agree that Cartwheel shall not be held liable for any claims, penalties, or damages arising from your use of this feature 

Surcharge FAQs

What is a surcharge?

Surcharging allows you to recoup fees (typically 2-3%) on a credit card transaction to offset the cost of acceptance. It’s capped at the cost of acceptance (you cannot profit from surcharging). 

What do they apply to? 

They apply to credit cards only–not debit/prepaid, ACH debit, or bank transfers. 

Do I need to disclose surcharges to my clients?

Yes. Surcharges must be disclosed at the point of entry, checkout, invoices, and on receipts. Additional regulations may apply. Consult your legal counsel to understand all the disclosure requirements specific to your organization. 

What happens if I issue a refund?  

You must also refund the surcharge, either in full or prorated. Confirm the applicable rules with your legal counsel.

Can I charge a surcharge to all clients? 

Surcharge regulations vary by state and country–and change frequently, which creates an ongoing compliance risk. You are responsible for knowing which rules apply to your business and keeping up with the changes. Consult your legal counsel before enabling surcharges on a regular basis thereafter.

What are high-risk states?

Some states have unique requirements or present a higher risk for surcharging compliance. When enabling the feature, you can choose whether to apply surcharges in high-risk states or exclude them. See Step 3 for details.

How will my clients know a surcharge is being applied? 

Required disclosure language and notification must appear at the point of entry, on the payment form, on invoices and receipts, and in saved payment methods, per card brand requirements. Cartwheel adds surcharge messaging on the point of entry in the application, the payment form, and saving a payment method for the first time. Cartwheel does not notify previously saved payment methods, which is often a requirement with associated timing. Additional requirements may apply. Ensuring full compliance is the customer’s responsibility. 

Is sales tax applicable for surcharges? 

It may be. Cartwheel does NOT apply sales tax to surcharges. Work with your counsel to determine your obligation to collect and remit sales tax on surcharges. 

Enabling Surcharges 

Before You Begin

Confirm the following before proceeding: 

• You have consulted legal counsel and understand surcharge regulations in all states and countries where you do business. 

• You know whether you intend to surcharge in high-risk states (See Step 3). 

• You understand if you’re required to complete a Merchant Surcharge Disclosure Form(s).

•  If required, you have already completed the Merchant Surcharge Disclosure Form(s) 30 days prior. 
  

Step 1: Open Global Client Settings

In your Cartwheel account, go to Settings in the left navigation. Then select Global Client Settings and click Edit. 

Step 2: Enable Credit Card Surcharges

This will open a Global Client Settings dialog box. 

Click Enabled. Once enabled, you will see fields to select the record country and state as well as the option to apply surcharges in high-risk states.

Step 3: Choose Your High-Risk State Policy 

Some states impose additional requirements for surcharging, like specific warning language or website disclosures. Consult your legal counsel to understand what high-risk state compliance requires before making this selection. The default setting is Do not apply surcharge in high-risk states. Make your selection by clicking on the corresponding radio button and clicking Update.

Step 4: Submit & Save

Click Update to save.

You’re all set. Cartwheel will begin processing surcharges effective immediately.

What Changes in the UI

Once surcharging is enabled:

• Checkout page — A Credit Card Surcharge line item appears beneath the list of invoices. The total and pay button amounts update to include the surcharge. A disclosure statement displays beneath the pay button.

• Transaction detail page — Three values now display: Collected, Invoice Payment, and Surcharge (only shown when a surcharge was applied).

• Receipts — Receipts include a Credit Card Surcharge line item when applicable.

• Terms & Conditions — A surcharge disclosure is automatically appended to all terms and conditions when surcharging is enabled.