Hybrid Program LFG Training

VizyPay
25 Sept 202308:22

Summary

TLDRThe ViSiPay hybrid program is a surcharge solution that splits credit card processing costs between customers and merchants. Customers pay a 3% fee on credit card transactions, while merchants cover debit card fees at 1.5% plus 25 cents per transaction. The program is compliant and requires merchants to display signs and receipts detailing the fees. It's not available in Massachusetts and Connecticut. The hybrid approach saves merchants up to 40% compared to traditional interchange programs and is most effective for businesses with high credit card usage.

Takeaways

  • 💡 The hybrid program by ViSiPay allows merchants to split the cost of credit card transactions between the customer and the merchant.
  • 💳 A surcharge is a fee added to credit card transactions to cover the cost of processing payments, and it is applied only to credit card types.
  • 🛒 The customer is responsible for a 3% surcharge on credit card transactions, while the merchant covers debit card transactions at a cost of 1.5% plus 25 cents per transaction.
  • 🚫 Surcharging is not allowed on debit or prepaid cards; it is restricted to credit card transactions only.
  • 🏪 Compliance requires merchants to display a sign at every point of entry and sale, as well as include the surcharge information on receipts.
  • 💼 Merchants using a hybrid program can save 30-40% over traditional interchange fees, and customers cover the credit card processing fees.
  • 🚫 The hybrid program is not eligible for use in Massachusetts and Connecticut due to state regulations.
  • 💼 The program is beneficial for merchants who accept a significant amount of credit card transactions, as it can result in substantial savings.
  • 📊 The hybrid program provides a clear breakdown of costs and savings on statements, showing how much customers have saved by covering the surcharge.
  • ⏰ There is no waiting period for merchants to start passing on credit card fees once they enroll in a surcharge program.

Q & A

  • What is the main purpose of the ViSiPay hybrid program?

    -The ViSiPay hybrid program is designed to split the cost of credit card transactions between the customer and the merchant, with the customer paying a surcharge on credit card transactions and the merchant covering the cost of debit card transactions.

  • How does the surcharge work in the hybrid program?

    -In the hybrid program, a surcharge is applied only to credit card transactions, with customers responsible for a 3% fee to cover processing costs. The point of sale system automatically detects credit card payments and imposes the surcharge.

  • What are the merchant's responsibilities in the hybrid program?

    -The merchant is responsible for covering the cost of debit card transactions at a rate of 1.5% plus 25 cents per transaction. They also need to ensure compliance by displaying required signage at all points of entry and sale, and including the surcharge information on receipts.

  • Why can't surcharges be applied to debit cards?

    -Surcharges cannot be applied to debit cards due to legal restrictions. It is only legal to apply surcharges to credit card transactions in the U.S. and U.S. territories, as per a legal settlement.

  • Are there any states where the hybrid program is not eligible?

    -Yes, the hybrid program is not eligible in Massachusetts and Connecticut due to state-specific regulations that prohibit surcharging on credit card transactions.

  • What is the monthly subscription cost associated with the hybrid program?

    -The monthly subscription cost for the hybrid program is $25, which covers the use of the technology that enables the surcharge program.

  • How does the hybrid program benefit merchants?

    -Merchants can save around 30 to 40 percent over traditional interchange style programs. Customers cover the credit card fees, which can be significant for merchants with high credit card transaction volumes, thus helping them save substantially.

  • What are the compliance requirements for merchants using the hybrid program?

    -Merchants must display a sign at every point of entry and point of sale stating the surcharge fee and that there is no fee for cash or debit cards. The surcharge information must also be included on receipts.

  • What is the maximum surcharge that can be passed on to customers?

    -The maximum surcharge that can be passed on to customers for credit card transactions is capped at three percent.

  • How does the hybrid program differ from a cash discount program?

    -The hybrid program splits the fees between the customer and the merchant, whereas a cash discount program implements a discount for cash payments and includes a surcharge in the displayed pricing for all other payment methods.

  • What additional benefits does the hybrid program offer to merchants?

    -The hybrid program offers no annual fees, no leasing required, and the ability to use terminals that support the program at no upfront cost, making it an attractive option for merchants looking to reduce costs associated with credit card transactions.

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الوسوم ذات الصلة
Surcharge ProgramMerchant ComplianceCredit Card FeesHybrid ModelPayment ProcessingCost SavingsPoint of SaleVisipayDebit Card FeesLegal Settlement
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