Additional Merchant Fees (Surcharges and Tariffs)
GSA SmartPay® Smart Bulletin No. 017
UPDATE:
| Date | Version History Action Log - Summary of Action/Changes |
|---|---|
| January 27, 2013 | Implementation of Smart Bulletin #17 |
| August 16, 2023 | Revised to update for administrative changes. |
| March 22, 2024 | Revised for administrative updates |
| May 16, 2025 | Revised to add tariff information |
| May 29, 2025 | Revised for administrative updates |
Effective Date
This Smart Bulletin becomes effective upon issuance and shall remain in force until modified or rescinded.
Business Line(s) Affected
Purchase, Travel, Fleet, and Integrated
Introduction
This bulletin addresses additional fees - such as surcharges and tariffs - that merchants may choose to impose on their customers.
Summary
Surcharges
Surcharges are fees that a retailer chooses to add to the cost of a purchase when a customer uses a charge card or credit card product. As a result of the settlement between a class of retailers and brands on January 27, 2013, merchants in the United States and U.S. Territories are permitted to impose a surcharge on card/account holders when a charge card/account or credit card is used as a form of payment.
Please note that not all merchants will choose to impose a surcharge, and each state may have its own policy regarding surcharge allowability.
In accordance with brand rules, the following limitations apply to merchant-imposed surcharges:
- The surcharge amount is limited to the specific and negotiated acceptance rate of a merchant and the networks, meaning that merchants are not allowed to profit from choosing to assess surcharges. For example, if a merchant’s negotiated acceptance rate with Visa and Mastercard is 3%, the merchant is allowed to impose a surcharge of no more than 3% of the total transaction value. Please note that the total surcharge rate a merchant can impose cannot exceed 4% in any State.
- Merchants are prohibited from imposing different surcharge amounts for different networks. For example, a merchant cannot impose a 3% surcharge for a Visa or Mastercard network product and a 2% surcharge for a non-Visa or Mastercard network product. In this example, the merchant would only be able to add a surcharge of up to 2% for all charge cards/accounts and credit cards accepted.
- Merchants must post clear notice and signage of imposed surcharges, which includes brick and mortar locations and e-commerce portals.
- All surcharges must be documented as a separate transaction line item in receipts. For more information, please refer to Visa and Mastercard policy at:
https://www.mastercard.us/en-us/business/overview/support/merchant-surcharge-rules.html
Tariffs
Tariffs are taxes imposed by governments on goods imported from other countries.
In 2025, the United States government began implementing tariffs on certain goods imported from select foreign countries. In response, some merchants began passing these tariff-related costs on to their customers.
Generally, tariffs should be clearly disclosed, justifiable, and not misleading to customers. In some industries, they must also comply with applicable regulatory requirements.
Unlike surcharges, tariffs are not linked to specific payment methods, such as charge card/account transactions. Instead, they are applied uniformly, regardless of the customer’s chosen form of payment.
For purchases made through the GSA Multiple Award Schedule (MAS), please note that added tariff fees are not permitted unless they are already included in the contractor’s approved pricing.
Action
Surcharges
A/OPCs should ensure card/account holders and other charge card management personnel are aware of the possibility of surcharges when making purchases using GSA SmartPay charge cards/accounts. If a merchant is imposing a surcharge, the card/account holder may choose to consider another merchant that offers the same or similar item(s) to avoid paying the surcharge.
Tariffs
A/OPCs should ensure that GSA SmartPay card/account holders and charge card management personnel are aware that merchants may add a tariff fee to the purchase price of certain goods. If a merchant includes the tariff fee, the agency/organization may allow the card/account holder to proceed with the transaction or may require the card/account holder to consider an alternative merchant offering the same or similar item(s) without the additional fee. This decision is at the discretion of the agency/organization. However, for purchases made through the GSA Multiple Award Schedule (MAS), please note that added tariff fees are not permitted unless they are already included in the contractor’s approved pricing.
