Credit card surcharging is permitted in Georgia as of March 2025. This billing practice helps MSPs in Georgia offset transaction processing costs when clients choose to pay with a credit card.
By adding a small fee to credit card transactions, MSPs can pass along some or all of the processing expenses rather than absorbing the entire cost themselves.
However, Georgia MSPs must follow specific regulations governing surcharges. State laws, federal guidelines, and card network policies outline strict requirements, including limits on surcharge amounts, mandatory disclosures, and rules prohibiting surcharges on certain payment methods.
This guide breaks down Georgia’s surcharging rules, explains fundamental compliance considerations, and offers practical insights on implementing surcharges while maintaining transparency with clients.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. MSPs should consult with a qualified attorney to address any legal or operational concerns.
What is Credit Card Surcharging for MSPs in Georgia?
Credit card surcharging allows MSPs to pass along credit card processing costs to clients by adding a fee to transactions.
Credit card processing fees include interchange fees, network assessments, and payment processor markups. These charges typically range from 2% to 4% per transaction, amounting to substantial expenses when accumulated over time.
For MSPs handling large transaction volumes or recurring client payments, these fees can become a financial burden, cutting profits and limiting funds for business expansion.
When MSPs absorb all processing fees, it restricts resources that could otherwise be allocated toward hiring, upgrading systems, or enhancing service offerings.
For example, a Georgia-based MSP processing $120,000 in monthly credit card transactions with an average processing fee of 2.8% incurs $3,360 in fees per month, adding up to $40,320 per year.
By implementing a 3% surcharge, the MSP shifts these costs to clients, allowing the MSP to retain the full transaction amount and reinvest the $40,320 into business growth.
Some MSPs take a shared-cost approach to balance cost recovery with client relationships. Instead of applying the full 3% surcharge, an MSP may impose a 1.5% surcharge, passing half of the costs to clients while absorbing the rest.
Under this model, the MSP recoups $1,680 per month and $20,160 annually, reducing financial strain while maintaining goodwill with clients.
Understanding Credit Card Surcharging Laws in Georgia
Credit card surcharging is a permitted but closely regulated practice in Georgia as of March 2025.
MSPs in the state can impose a surcharge on credit card transactions, but they must comply with specific state and federal rules to ensure transparency and fairness for clients.
While Georgia law does not ban surcharging outright, it imposes strict conditions to prevent excessive fees and deceptive pricing practices.
Unlike some states that prohibit surcharges, Georgia permits them under carefully defined conditions. The surcharge, often referred to as a "convenience fee," is allowed as long as merchants follow regulations aimed at consumer protection.
MSPs must adhere to requirements that limit surcharge amounts and mandate disclosure, as well as ensure alternative payment options are available.
Georgia’s surcharge laws are designed to prevent MSPs from profiting from the practice. Merchants can pass along credit card processing costs to clients, but only within specific guidelines.
According to the official website of the State of Georgia, these guidelines include:
- Surcharge Cannot Exceed Processing Costs: The amount charged cannot exceed the actual cost of credit card acceptance. MSPs are not permitted to generate additional revenue through surcharges.
- Alternative Payment Option: Merchants must offer a fee-free payment alternative, such as cash, check, or money order. It is illegal to impose a surcharge if a no-fee option is unavailable.
- Clear and Prominent Disclosure: MSPs must notify clients of surcharges before payment processing. Signage at the point of sale is required, and surcharge details must be displayed on the checkout page for online transactions.
Federal laws must also be considered.
For example, under the Durbin Amendment of the Dodd-Frank Act, MSPs cannot apply surcharges to debit or prepaid cards, even when processed as credit.
Georgia law does not set a fixed percentage cap on surcharges beyond the 4% federal cap, but MSPs still cannot charge more than their actual cost to accept a credit card.
Even though Georgia does not impose an additional percentage ceiling, credit card networks do.
Visa, for example, reduced its maximum surcharge to 3% in 2023, while other networks still allow up to 4%. If a merchant’s processing fee exceeds these thresholds, it must abide by the lower of the two limits—state law or card network regulations.
Under state consumer protection laws, merchants who fail to follow Georgia’s surcharge regulations may face fines and other legal consequences.
The Georgia Attorney General’s Consumer Protection Division enforces compliance, and violations can be prosecuted under the state’s Fair Business Practices Act (O.C.G.A. §10-1-390 et seq.).
The following sections will cover step-by-step best practices for implementing credit card surcharging to help MSPs comply with these regulations while maintaining healthy client relationships.
Note: For accurate legal advice, consult a qualified attorney to ensure full compliance with Georgia’s surcharging laws.
Implementing Credit Card Surcharging for Georgia MSPs
A structured approach that prioritizes legal compliance, transparency, and operational efficiency is pivotal to successfully implementing credit card surcharging.
By following Georgia's regulatory framework, MSPs can apply surcharges fairly while maintaining trust and minimizing disruptions in client relationships.
The following guide provides a step-by-step process for integrating surcharging into MSP billing practices in Georgia.
It also outlines best practices for ensuring compliance, reducing disputes, and maintaining strong client relationships while recovering processing costs.
Step 1: Establish a Clear Surcharge Policy and Structure
Georgia MSPs must develop a clearly defined surcharge policy that complies with state and card network regulations. This policy should specify the surcharge rate (ensuring it stays within legal limits), when it applies, and which transactions will be subject to the fee.
MSPs must also determine how they will structure surcharges, with common approaches including:
- Fixed Percentage Surcharge
- Tiered Surcharge System
- Flat Fee Surcharge
a) Fixed Percentage Surcharge
A consistent percentage is applied to all credit card transactions.
Example: A 2.8% surcharge on an $8,500 invoice results in a $238 fee, making the total $8,738.
b) Tiered Surcharge System
The surcharge rate varies based on the transaction amount.
Example:
- 1.9% for transactions under $4,000
- 2.9% for transactions between $4,000 and $7,500
- 3.5% for transactions over $7,500
A $3,800 invoice would incur a $72.20 surcharge, while a $6,500 invoice would have a $188.50 surcharge.
c) Flat Fee Surcharge
Regardless of the invoice size, a fixed dollar amount is added to each credit card payment.
Example: An MSP applies a $45 flat fee to all credit card payments. If a client pays a $4,200 invoice, the total comes to $4,245.
MSPs must be mindful of compliance when using this approach.
If an invoice is small, adjustments may be necessary. For example, if a $650 invoice has a 3% processing cost, a surcharge exceeding $19.50 would violate surcharge regulations.
This method works well for MSPs with standardized pricing but requires oversight to ensure compliance on smaller transactions.
Step 2: Notify Credit Card Institutions and Clients
Georgia MSPs must inform their payment processors or acquirers, such as Visa, Mastercard, American Express, and Discover, at least 30 days before implementing surcharges. This ensures compliance with card network requirements.
Clients should also receive advance notice.
Service agreements must clearly define surcharge amounts, explain their purpose (offsetting processing fees), and outline any conditions under which they may fluctuate.
Transparency must be prioritized above all else. Clients need to understand that surcharges are not a profit-driven strategy but a way to recover credit card processing costs.
Failing to communicate this properly could damage trust and lead to payment disputes over perceived unfair fees.
Invoices should itemize the surcharge amount and percentage to prevent confusion.
Example:
- A $9,300 invoice with a 2.6% surcharge would include an additional $241.80 fee, making the total $9,541.80.
Failure to disclose surcharges can lead to chargebacks, which are costly.
For instance, if a client contests a $225 surcharge they were not informed about, it could result in a chargeback.
According to Swipesum, the average chargeback costs businesses $190 per dispute—a financial risk MSPs must minimize.
Step 3: Update Invoicing and Payment Systems
When implementing surcharges, invoices must be updated to reflect these fees clearly. Each invoice should list the surcharge separately to prevent confusion and reduce the risk of disputes.
Automated billing solutions like FlexPoint allow Georgia MSPs to apply and calculate surcharges seamlessly. These tools ensure compliance and eliminate manual errors, making the process straightforward for both the MSP and its clients.
For example, a $5,700 invoice with a 2.9% surcharge would show an additional $165.30 fee, bringing the total to $5,865.30.
By integrating automation, MSPs reduce the likelihood of disputes and increase payment efficiency.
Step 4: Continuously Monitor Compliance
Surcharge regulations are subject to change, so Georgia MSPs must consistently review their surcharging policies to stay compliant with state laws and card network rules.
Surcharge rates should always align with the latest regulatory caps. Changes in legislation or payment processor policies must be accounted for to avoid non-compliance.
For example, as mentioned above, Visa reduced its surcharge cap from 4% to 3% in 2023, requiring MSPs to adjust accordingly.
Meanwhile, Mastercard’s 4% cap only applies if a merchant's processing fees exceed this amount. Otherwise, the surcharge cannot exceed the merchant discount rate (MDR).
“If a merchant’s merchant discount rate for Mastercard credit cards is 2.50%, the cap on the surcharge that this merchant may charge a consumer is 2.50%, not 4%.
The 4% cap only becomes relevant in the rare instances where a merchant is paying more than 4% for Mastercard acceptance.”
Proactively monitoring surcharge policies helps Georgia MSPs remain compliant, avoid penalties, maintain client trust, and effectively manage payment processing costs.
The Role of FlexPoint in Simplifying Credit Card Surcharging for Georgia MSPs
FlexPoint offers specialized payment solutions that streamline surcharging and optimize financial efficiency for Georgia MSPs looking to control processing costs while maintaining compliance.
Payment Processing Options
FlexPoint provides two customizable payment processing plans designed to accommodate the distinct needs of MSPs:
- Interchange+ Plan
- Customer Surcharge Plan
a) Interchange+ Plan
The Interchange+ Plan is ideal for Georgia MSPs that prefer to absorb payment processing costs rather than passing them on to clients.
Interchange rates vary depending on the card type used in a transaction.
This plan adjusts processing fees according to these interchange rates, ensuring a transparent and cost-effective strategy.
For example:
- Transactions with Discover cards, which often have lower interchange rates, result in reduced processing costs.
- High-reward credit cards or American Express transactions tend to have higher interchange rates, leading to increased processing fees.
This plan is well-suited for MSPs who want to offer credit card payments without surcharging clients while securing the best possible rates.
b) Customer Surcharge Plan
The Customer Surcharge Plan shifts credit card processing fees to clients.
Instead of absorbing these costs, MSPs apply a fixed percentage surcharge to each credit card transaction, ensuring the fees are covered without impacting profit margins.
This approach offers clear, upfront pricing and helps MSPs maintain predictable cash flow by eliminating out-of-pocket processing expenses.
Example:
- A 3% surcharge on a $14,500 invoice results in a $435 fee, which the client pays in addition to the invoice total. This covers the processing cost, keeping the MSP’s revenue intact.
FlexPoint also supports a hybrid approach for MSPs looking for a balanced strategy. In this approach, the surcharge is split between the MSP and the client.
This level of flexibility allows Georgia MSPs to protect their bottom line while maintaining strong client relationships.
How FlexPoint Enhances Compliance and Transparency
FlexPoint simplifies credit card surcharging by handling fee calculations automatically, ensuring MSPs stay compliant with Georgia regulations, federal mandates, and card network policies.
The built-in safeguards prevent MSPs from exceeding surcharge limits, including the federal 4% cap and Visa’s 3% maximum surcharge rule.
With these compliance measures in place, Georgia MSPs can pass processing costs to clients without worrying about manual calculations or regulatory missteps.
Here’s an example of how an invoice processed through FlexPoint might look when applying a 3% surcharge:
Note: For accurate legal advice, consult a qualified attorney to ensure full compliance with Georgia’s surcharging laws.
Thank you for choosing [Your Business Name]! If you have any questions, please contact us at [Your Contact Information].
FlexPoint’s Integration with MSP Tools for Seamless Billing
FlexPoint connects seamlessly with popular business management platforms, allowing Georgia MSPs to handle invoicing, billing, and reconciliation within a single, centralized system.
Supported integrations include:
- QuickBooks Online AND QuickBooks Desktop
- Xero Accounting
- ConnectWise PSA
- Autotask
- SuperOps
- HaloPSA
These integrations eliminate unnecessary manual administrative work, improve invoice accuracy, and optimize billing processes, saving MSPs valuable time while ensuring precise financial records.
With FlexPoint, payment statuses, surcharge amounts, and reconciliation details automatically sync across systems, reducing human error and maintaining consistency across financial records.
For example, when FlexPoint is integrated with QuickBooks, it instantly applies real-time payments and surcharges to invoices. This means MSPs always have up-to-date payment insights, expediting month-end financial reconciliation.
Instead of spending hours tracking payments or correcting invoice discrepancies, MSPs can focus on delivering quality services to their clients.
FlexPoint also offers features like:
- Branded payment portals for a seamless client payment experience
- Real-time reporting to provide deep financial insights and cash flow visibility
With these tools, Georgia MSPs can manage payments effortlessly while ensuring their clients a smooth, professional experience.
Offering Flexibility in Surcharging
Managing surcharges effectively requires flexibility, and FlexPoint allows Georgia MSPs to tailor surcharging practices based on their business needs and client relationships.
With FlexPoint, MSPs can:
- Apply surcharges selectively—waiving fees for long-standing, loyal clients while charging them for new or infrequent clients
- Automate surcharge calculations to ensure compliance with card network rules and Georgia regulations
- Offer branded payment portals that improve transparency and client control over payment methods
FlexPoint ensures surcharges never exceed allowed limits, reducing the risk of non-compliance.
For example:
- Visa’s maximum surcharge is 3%, so FlexPoint automatically applies no more than 3% to Visa transactions
- This precision helps Georgia MSPs avoid penalties and ensures all surcharges comply with federal and state regulations
FlexPoint’s branded payment portals enhance trust by allowing clients to review surcharges before finalizing a transaction. When clients understand why surcharges are applied, the risk of disputes drops significantly.
These portals also give clients greater control over payment methods.
For example, a client who frequently uses a high-reward credit card with a 3.5% surcharge may choose to switch to a debit card to avoid the extra cost. This self-service flexibility reduces back-and-forth communication and streamlines payments for both MSPs and their clients
By automating compliance, integrating surcharge calculations, and offering client-friendly payment tools, FlexPoint eliminates the burden of manual processes, freeing Georgia MSPs to focus on building strong client relationships.
Conclusion: Streamlining Payments with Effective Surcharging Strategies
Processing fees can take a toll on the profitability of Georgia MSPs, making it crucial to find ways to manage these costs.
Credit card surcharging allows MSPs to share transaction fees with clients, helping to offset expenses. However, surcharging must be handled carefully to comply with federal laws, Georgia state regulations, and card network policies.
MSPs must clearly itemize surcharge amounts on invoices and notify clients of these fees before processing payments.
Failing to follow proper procedures, such as exceeding surcharge limits or not providing adequate disclosure, can lead to penalties, disputes, or restrictions from payment processors.
FlexPoint simplifies compliance and automation, ensuring surcharges are applied correctly and transparently. The platform manages fee calculations, legal requirements, and reporting, allowing MSPs to reduce costs without the burden of manual oversight.
With FlexPoint, Georgia MSPs can implement surcharging with confidence and keep their focus on business growth.
Ready to lower your credit card processing costs with the help of surcharging while staying compliant with Georgia’s regulations?
FlexPoint simplifies the process, helping you streamline payments and improve profitability.
Schedule a demo today and see how FlexPoint can transform your payment workflows and optimize financial operations.
Additional FAQs: Credit Card Surcharging in Georgia for MSPs
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