Product Documentation
Product Documentation
Offering payment by credit card as an option for customer payments, and doing so profitably, can be a challenge. Distributors have to consider the steps required to implement a surcharging program, such as managing credit card processing, navigating compliant convenience fees and surcharging, and reconciling fees.
The intricate nature of surcharging—paired with costly credit card processing fees—often make it difficult for distributors to offer their customers a credit card payment option that doesn’t reduce profit margins.
To provide a seamless, digital payment flow and help mitigate credit card processing fees, Kodaris has implemented fully compliant surcharging and convenience fee features into the Kodaris Platform. This means, if the state allows, you have the ability to freely apply convenience fees or surcharges to sales paid with a credit card.
Not only can you implement surcharging, but you can also determine the fee you want to charge your customers based on a fixed dollar amount (a “convenience fee”) or percentage-based amount (a “surcharge”). With this flexibility and customization, you can decide to charge the entire processing fee back to the customer or only a portion—the choice is yours.
Kodaris also offers both U.S. ACH and Canadian EFT payment methods, both of which have much lower processing costs. This allows you to restrict customers to this payment method or offer an alternative to card payments. To pay by ACH or EFT, customers can easily enter and save their bank account information within the Customer Portal, just like they can with a credit card, or you can do this on their behalf.
With customizable surcharging and convenience fee capabilities, you can now offer a credit card payment option that doesn’t affect your profitability. The Kodaris Platform has the functionality to support credit card processing and facilitate compliant fee-charging methods which allow you to easily capture and reconcile fees received, ultimately improving your bottom line and cash flow.
Through payment partners, Kodaris offers compliant merchant processing and both surcharging and convenience fee options. Surcharging and convenience fees are simple to set up in the Operations Portal. You can refer to our library of step-by-step documentation on how to configure the fees; however, the Kodaris Support team is always available to assist whenever needed.
Once the proper settings have been enabled and configured, the surcharging and convenience fees can appear in various payment flows depending on your needs:
In any circumstance listed above, the fee notice will display at the time of payment, providing full transparency of the fee and amount. In the example image below, which highlights the payment flow in the Customer Portal, the fee is displayed near the credit card type and the last four digits.
Users will not have to follow any additional steps to accept the fee. By simply selecting a credit card as their chosen payment, the associated fee will be added on to their payment total.