If you have already started adding a card fee, one of the first accounting questions is are credit card surcharges taxable? There is no single nationwide sales-tax answer. Whether the surcharge belongs in the taxable sales price depends on the state’s statutes, regulations, administrative guidance, the nature of the underlying...
Surcharging Invoices and Card-on-File Payments: Disclosure Rules for Service Businesses That Bill Remotely
For a service business researching surcharges on invoices cards not present, the most important change from countertop payments is where disclosure happens. A business that emails invoices, sends payment links, or charges stored cards cannot treat a sign in an office as the primary customer notice. The surcharge needs to...