Fines Without Findings: Surcharging Rules, Real Penalties, and How to Stay Out of the Crosshairs

Join Christopher Dryden, Leo Arzumanyan, and Jeremy Stock of Global Legal Law Firm (https://www.globallegallawfirm.com/podcasts/) as they discuss how merchants are getting hit with four- and five-figure “surcharging violations”—and no one will say what actually went wrong. In this episode, our hosts pull back the curtain on the rulebook, the enforcement machine, and the practical fixes that keep ISOs, PayFacs, processors, and merchants compliant without tanking conversion. We share real cases, explain the caps, and show exactly where signage and receipt language fail in the wild—and how to fix them fast.

Why this matters

When letters arrive without clear findings or remediation steps, fines escalate, fear shuts down communication, and portfolios absorb risk they can’t see. Underwriting can’t screen for prior fines, “debit is not credit” keeps tripping teams, and state laws collide with brand rules at the POS. We translate that chaos into a clear playbook you can apply this week.

What we cover (and how to use it)

Fines without findings
How assessments jump from a few thousand dollars to much more with little guidance, why letters lack specific violations, and the operational drag that follows.

The three pricing models—done right
Surcharging (credit-only; capped by brand), cash discounting (posted price is the card price; discount for cash), dual pricing (two posted prices: cash vs. credit). Where teams mix concepts and invite complaints.

Debit ≠ credit
The most common failure mode. Why “flat fee on everything” is a lawsuit magnet, how to configure debit handling so frontline staff can’t override compliance.

Signage, receipts, and “conspicuous disclosure”
The exact choke points: entry, shelf/menus, checkout, and receipts. What must be stated, where it must appear, and why register-only signs get merchants fined.

State law vs. brand rules
How state statutes (e.g., display/advertising) can create liability even when brand caps are honored, and why the stricter rule governs in conflicts.

Risk flow and blind spots
Liability waterfalls from sponsor bank → acquirer/ISO → merchant, yet there’s no fines database. The underwriting gap this creates—and how to close it with attestations and audits.

Due process and escalation
Why fear of reprisal keeps merchants quiet, what a transparent channel should look like, and how to preserve evidence to challenge bad assessments.

The practical playbook (copy/paste to your runbook)

Standardize onboarding
Require a signed pricing/surcharging attestation covering signage, debit handling, caps, and receipt language. Lock these into your CRM and renewal cycles.

Compliance-in-a-box
Provide pre-approved templates for entry placards, menu/shelf tags, POS receipt footers, and e-commerce disclosures. Include brand-cap reminders where staff see them.

Configure the POS, not just the people
Hard-cap surcharge percentages at the terminal; block debit surcharges by BIN range; enforce item-level dual pricing where required. Turn on receipt disclosures by default.

Audit on a cadence
Quarterly website and on-site checks (or merchant-submitted photo audits). Verify that posted prices match the program (cash discount vs. dual vs. surcharge). Document everything.

Respond like a regulator will
When a notice lands, open a ticket, collect photos/receipts, map each allegation to the rule text, remediate within SLA, and keep a paper trail for appeal. Train support to route these instantly.

Who should watch/listen

ISOs/PayFacs tightening pricing programs across mixed merchant portfolios

**Matters discussed are all opinions

A payments podcast of Global Legal Law Firm