Using Gravity Payments Surcharging Without Misapplying Fees

By Jordan Lee, merchant-pricing documentation editor with nine years in payments-support writing (editorial persona)
Last reviewed: July 12, 2026

Gravity Payments allows participating merchants to add a surcharge of up to 3% to eligible credit-card transactions. Debit and prepaid cards must be excluded, even when a customer selects “credit” at the terminal, and the fee must be disclosed before payment and itemized on the receipt.

This independent guide is not operated by Gravity Payments and cannot activate or approve a surcharge program.

What Gravity Payments surcharging means

A surcharge is an additional amount applied because a customer chooses an eligible credit card. Gravity says its program can offset part of a merchant’s processing expense, although it cannot eliminate costs connected with debit cards, prepaid cards, international cards and certain card-brand fees.

Gravity’s June 2026 guidance states that its surcharge cannot exceed 3%. It also says the percentage cannot exceed the merchant’s effective processing rate. Visa applies the lower of the merchant discount rate for the applicable credit card or 3%.

That distinction matters. A business paying an effective eligible credit-card rate of 2.6% should not simply configure a 3% surcharge because 3% is the widely advertised ceiling.

Check the measured rate first. Skip a percentage copied from another merchant’s sign.

Never surcharge a debit or prepaid card

Gravity and Visa state the same core restriction: surcharges apply to eligible credit cards, not debit or prepaid cards. A debit card remains a debit card when the customer chooses a signature-based “credit” route instead of entering a PIN.

This is where manual fee entry becomes dangerous.

An employee looking at a card may not reliably know whether it is debit, prepaid or credit. Gravity says the payment system should be capable of removing the surcharge automatically when the payment method is not eligible. Its April 2026 merchant guidance also warns that manually adding a fee can result in debit cards being charged incorrectly.

Priority one is compatible equipment. Skip a generic percentage button that staff must apply by memory.

Payment method	Gravity surcharge treatment
Eligible consumer credit card	May be surcharged under the configured program
Debit card with PIN	Cannot be surcharged
Debit card processed as “credit”	Cannot be surcharged
Prepaid card	Cannot be surcharged
Cash	No credit-card surcharge
ACH or check	Governed by the account’s separate pricing and payment rules

The table summarizes Gravity and Visa’s published restrictions. Account settings and state requirements may further limit eligibility.

Notify the processor before starting

Gravity instructs merchants to review their processing agreement and notify the acquirer before beginning a surcharge program. The company says it can assist with card-brand registration and reporting for merchants using its supported setup.

Visa currently requires merchants to notify their acquirer at least 30 days before surcharging begins. Visa also requires the surcharge amount to be sent through the dedicated transaction-message field enabled by the acquirer.

Mastercard’s public pages contain a temporary 2026 wrinkle. Its general rules page describes 30-day notice to Mastercard and the acquirer, but its current registration-form page says U.S. merchants are temporarily not required to register through that site while Mastercard updates its rules. Mastercard expects revised requirements during the second half of 2026.

Do not interpret the unavailable Mastercard form as permission to begin immediately. The merchant should follow Gravity’s onboarding instructions and confirm what acquirer notice remains required when the program is activated.

Signs and receipts are part of the transaction

Visa requires clear customer disclosure for both in-store and online transactions. The customer must be alerted at the point of entry, at the point of sale or transaction, and on every receipt. Mastercard similarly requires disclosure at the point of interaction and the dollar amount of the surcharge on the receipt.

Gravity’s merchant materials describe signs at the business entrance and payment counter. For remote transactions, the surcharge must be disclosed before the payment is processed. The receipt should show the surcharge as a separate line item.

A small sticker beside the terminal may not cover every channel. A business accepting telephone payments, online links and counter payments needs disclosure in each applicable customer path.

The customer must see the cost before committing.

Gravity applies one program, not an improvised fee

Gravity’s current FAQ says merchants using its surcharge program cannot switch the fee on for selected credit-card transactions and off for others. It also says the same percentage must be used across card brands rather than charging, for example, 2% on Visa and 3% on Mastercard.

Card-network rules can contain more detailed brand-level and product-level options. Mastercard, for example, describes both brand-level and product-level surcharges, each subject to cost-based caps and other conditions. Visa describes parity restrictions when a merchant accepts competing credit networks.

For an individual Gravity merchant, Gravity’s configured program controls the available operation. The broader network rules do not mean an employee can create custom percentages at checkout.

Surcharge, cash discount or convenience fee?

These terms are often treated as interchangeable. Gravity defines them differently.

A surcharge adds a percentage to eligible credit-card payments. It cannot be applied to debit or prepaid cards.

A cash discount starts with the card price and offers a lower displayed price for an alternative payment method. Visa says the merchant should display either the card price alone or the card and cash prices side by side. Adding a fee to a lower advertised price at checkout may cause the arrangement to be treated as a surcharge.

A convenience fee is associated with a nonstandard payment channel and is generally structured as a fixed amount rather than a percentage under the Gravity explanation. Its availability and rules depend on the channel and accepted payment types.

Gravity says its surcharge program cannot be combined with cash discounting. Choose the pricing model before configuring the terminal or publishing signs.

Refund the surcharge with the sale

Gravity’s surcharge FAQ says the surcharge must also be returned when a customer receives a refund.

A $103 transaction containing a $100 sale and a $3 surcharge should not produce a full refund of only $100. The transaction record and refund workflow should account for the added amount.

Use the original transaction whenever the system allows it. Skip a manually calculated refund until the processed total and surcharge line have been confirmed.

Partial refunds may require account-specific handling because the surcharge adjustment must remain consistent with the amount being returned. Gravity’s public surcharge FAQ confirms the full-refund rule but does not publish a universal partial-refund formula for every integrated system.

State rules can be stricter

Gravity notes that state law may prohibit or restrict credit-card surcharging. Visa gives the same warning and explicitly says its own list may contain omissions or become outdated.

A static blog list is not enough for a multi-state business. The applicable rule may depend on the merchant outlet location, the way prices are displayed and the type of transaction. Visa says each outlet must follow the law of the state where that outlet operates.

Verify state requirements before launch, especially when payments are accepted across several physical locations or through an online channel serving customers nationally.

Common Gravity Payments surcharge mistakes

The first mistake is applying the surcharge to a debit card because the customer selected “credit.” The network still identifies the product as debit.

The second is advertising the lower cash amount as the normal price, then adding a card fee at checkout. Visa says a valid cash-discount structure must display the full card price rather than constructing it through a surprise fee.

Other concrete failures include:

• Starting before the acquirer notice process is completed
• Using a rate above the eligible processing cost
• Omitting the fee from the receipt
• Posting a sign only at the register when entrance disclosure is required
• Adding the fee manually to every card
• Failing to return the surcharge during a refund
• Combining Gravity surcharging with cash discounting

Gravity says its compatible systems can automatically apply the surcharge to eligible cards and exclude debit. That setup is safer than relying on staff to identify the card type.

FAQ

What is the Gravity Payments surcharge limit?

Up to 3%, subject to the merchant’s eligible processing cost and applicable rules.

Can Gravity Payments surcharge debit cards?

No.

A debit card cannot be surcharged even when it is processed without a PIN or the customer selects “credit.” The card product remains debit, and both Gravity and Visa prohibit adding a credit-card surcharge to it.

Does a merchant need to register first?

Gravity says merchants must notify the acquirer and that it can assist with registration and reporting. Visa requires at least 30 days’ acquirer notice. Mastercard has temporarily suspended registration through its U.S. web form while revising its 2026 rules, so confirm the current process through Gravity.

Must the surcharge appear on the receipt?

Yes. Visa, Mastercard and Gravity require customer disclosure, including a separately identified surcharge amount on the receipt.

Can I charge 2% on Visa and 3% on Mastercard?

Gravity says merchants using its program cannot use different percentages by card brand. Broader network rules can be more detailed, but the merchant must follow the processor configuration and applicable parity requirements.

Is a cash discount the same as a surcharge?

No. A surcharge adds a fee to an eligible credit-card transaction. A cash discount presents the full card price and offers a lower price for an alternative payment method.

What happens when the purchase is refunded?

Gravity says the surcharge must be refunded too. Use the original transaction record so the sale and added fee can be traced together.

The practical order is to confirm state eligibility, complete Gravity’s setup process, use compatible equipment and test the receipt before applying the surcharge to a live customer transaction.