Payment surcharges
Zuora now supports the ability to apply credit card surcharges to help merchants pass on payment processing fees to end customers, offering greater flexibility in managing processing fees. For example, if a customer pays by credit card, the merchant can apply a percentage based fee based on the payment processing charge.
This is currently in the Early Availability phase and in limited availability and is available for customers on Invoice settlement.
Payment surcharges are assessed at the time of payment request and do not alter the original invoice or debt documents. Surcharges are recorded as debit memos linked to the original invoice once the payment is processed.
A payment surcharge is created only when the payment is created from a payment run.
Benefits
- For merchants,
- Reduces the financial burden of credit card transaction fees and improves profit margins for merchants.
- Allows flexibility to tailor surcharge fees according to the business needs and cost structures.
- For buyers,
- Provides awareness to understand the additional costs associated with their payment method, leading to more informed payment decisions.
- Allows the usage of lower-cost payment methods to reduce their overall transaction fees.
Prerequisites
The payment Surcharges feature is available only if the Invoice Settlement feature is enabled.
If you would like access to this feature, contact your Zuora account team or submit a request to Zuora Global Support specifying your tenant ID.
Permissions and Roles
The following user role permissions are required for the surcharge capability in Zuora:
- Surcharge configuration: Surcharge configuration is performed by making an API call to create the combinations of attributes-value pairs that determine the surcharge amount (or rate). An API user is required to perform this action.
- Surcharges computed during the payment run process will use the Payment Run Schedule Job user to create the debit memo holding the surcharge amount.