By uniformly assessing a set service fee across all products and payment types, merchants utilizing the PayLo Program meet the standard regulations set forth by all major card service providers, state law and federal law. A small service fee is assessed on ALL sales regardless of how payment is made including cash, credit-debit cards, gift cards, etc. As stated in the Durbin Amendment §124.STAT.2073, 9b2 (www.napcp.org/page/DurbinAmendment) businesses are permitted to offer a discount to customers as an incentive and to encourage customers to pay by alternative methods other than a credit/debit cards (such as cash) in order to automatically receive a discount which is applied at the time of sale. As of January 27, 2013 several Card industry changes went into effect with regards to the credit card company’s federal class action litigation settlement. The settlement requires Visa and MasterCard to change some rules for merchants who accept their cards, including allowing merchants to “offer discounts to customers who pay with payment forms less expensive than Bank Debit cards”.

A Customer Notice is Required

Clear and conspicuous signage is required by law to be displayed at the business entry point and at the point-of-sale to easily and accurately explain the service fee program payment options. SignaPay also suggests verbally offering the customer a discount for cash payment. PayLo service fee program automates the service fee process by applying the customer service fee at the time of sale or removing the fee if the buyer pays in cash. PayLo provides register, terminal and door stickers as well as table tents and menu labels to help you stay compliant.

Receipts Must be Clear

True service fee technology will discern between credit/debit and cash payments and itemize the amount for each on receipts.