Frequently Asked Questions
Frequently Asked Questions
Q: How much can I surcharge?
A: Card networks cap surcharging at 3% of the transaction amount. Vanilla + Yeeld apply the correct rate automatically, keeping you within allowed limits.
Q: Will my customers know about the surcharge?
A: Yes - and they have to be told. Card network rules require clear disclosure before payment. Vanilla handles this automatically on every transaction.
Q: Is surcharging legal?
A: Surcharging is legal in 48 US states. Connecticut and Massachusetts are the only exceptions. Vanilla's compliance engine automatically applies a $0 surcharge in those states.
Q: Can I profit from surcharging?
A: No, surcharging can offset costs of transaction expenses but can not produce revenue for your business.
Q: Can I recover Vanilla + Yeeld fees in the surcharge amount?
A: Yes. As part of your transaction fees, you are able to recover Yeeld + Vanilla fees directly in the surcharge amount (as long as the total is no more than 3%).
Surcharging allows you to offset credit card processing fees by passing a small percentage to the customer - automatically, compliantly, and without changing your pricing. It can also be used to recover any associated Vanilla and Yeeld fees.
With VanillaPOS and Yeeld, surcharging functionality is built directly into your platform and terminals. There’s nothing to develop, configure, or maintain.
Overview
Surcharging is available out of the box through Vanilla’s direct integration with Yeeld. Once enabled, it applies automatically across your payment flows while ensuring compliance with U.S. regulations and card network rules.
Key benefits:
Recover up to 3% on credit card transactions
Fully compliant across 48 supported states
No configuration or development required
Works across terminals, invoices, kiosks, and online payments
Built directly into Vanilla
How It Works
Once surcharging is enabled, everything runs automatically in the background:
1. Ready to use
Surcharging is already available within your Vanilla account, and can be enabled upon request - no additional development is required.
2. Card type detection
Vanilla automatically detects whether a customer is using a credit or debit card.
Surcharges apply to credit cards only
Debit cards are never surcharged
3. Real-time compliance checks
Each transaction is evaluated instantly using Yeeld’s compliance engine:
State laws and card network rules are applied in real time
Restricted states (e.g., Connecticut and Massachusetts) automatically receive a $0 surcharge
4. Customer disclosure and payment
The surcharge is clearly shown to the customer before payment
The fee is applied to the transaction and offsets your processing costs
Compliance and Regulations
Surcharging rules vary by state and card network, and they can change over time. Yeeld handles this complexity for you automatically.
What’s handled for you:
Real-time rules engine for every transaction
Automatic handling of restricted states
Continuous updates as regulations change
Built-in customer disclosure requirements
You don’t need to track laws, maintain lists, or make manual updates.
Where Surcharging Applies
Surcharging works across all Vanilla payment channels:
In-person terminal payments
Kiosks
Online checkout
Payment links and invoices
No additional configuration is needed for each channel.
Why Use Surcharging?
Surcharging is more than just a feature - it’s a way to improve your margins without increasing prices.
Benefits to your business:
Keep more revenue from every sale
Offset 2-3% processing fees on credit cards
Maintain transparent pricing
Avoid operational complexity
Surcharging and Refunds
When issuing refunds on transactions that include surcharges, the surcharged amount is automatically added to the refunded amount.
Example: If a customer makes a purchase of $100.00 and a 3% surcharge is applied, the total amount charged will be $103.00.
When processing a refund in the Point of Sale, enter the original purchase amount ($100.00) as the refund amount. The system will automatically include the associated surcharge ($3.00) when the refund is issued, resulting in a total refund of $103.00 being returned to the customer.
Getting Started with Surcharging
Surcharging is already built into your Vanilla account.
To enable it, complete this form, contact your account team or support, and we’ll activate it for you.