Consider this a way for your small business to save on fees! Yes, credit cards are an easy, convenient way for your clients to pay, but the impact on your bottom line? It’s costly! Walla Redeem is a feature that allows you to offset the frequent credit card processing fees that quickly add up. This optional feature adds a 3% fee on credit card payments at your studio as part of the total order cost.
Did you know merchants paid $126.35 billion in processing fees to accept credit card payments in 2022 (up over 20% from 2021)? Walla directly addresses this common negative monetary challenge—especially for small businesses—without adding any extra work by implementing an automated and compliant surcharge. That means you can recover what was once lost in credit card processing expenses by sharing the fees with your clients on individual transactions instead of increasing class and plan pricing!
With Walla Redem, we completely automate every transaction to collect the shared credit card fee when a client makes a payment. Upon Walla Redeem activation, your processing rate, specifically for credit cards, increases to 4%. So, how can we help you offset that fee specific to credit card transactions (not debit cards or other payment methods)? With the 3% fee added to client purchases, Walla Redeem immediately reduces your processing costs.
Strict adherence to various rules, policies, and state-specific laws is essential for credit card surcharging to remain compliant, and failure can result in substantial fines and penalties. Implementing credit card surcharges should be visible and communicated to clients, but can result in client dissatisfaction and more.
By activating Walla Redeem, you recognize and accept that ensuring compliance with all legal and card network obligations, including MasterCard's notification requirements, is solely your responsibility. In addition to card network surcharging rules, merchants must follow federal and state laws specific to surcharging and laws prohibiting deceptive or misleading disclosures. Laws change from time to time and vary by state.
Currently, 10 U.S. states have surcharging restrictions, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas. Additionally, merchants located in Colorado may only surcharge up to 2%.
Please note that the Walla Redeem feature is not available to businesses in Connecticut, Maine, Massachusetts, and Oklahoma.