Is an electronic signature valid?

Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.

Do I need a notary or witness?

Most private surcharge agreements do not require notarization; state-specific rules vary. Use the state requirements table for jurisdictions with different standards.

What if a customer disputes the fee?

Provide the executed agreement and audit trail showing consent. Disputes may still trigger chargebacks; align refund and reversal policies to minimize losses.

How should I store executed copies?

Retain signed agreements in a secure, access-controlled repository with tamper-evident storage, export capability, and retention policies aligned with IRS and industry rules.

Are consumer disclosures required?

Consumer-facing financial disclosures should meet ESIGN consumer-disclosure requirements where applicable, and card networks or state law may impose additional notice obligations.

What authentication level is recommended?

Use email plus SMS or knowledge-based authentication for higher assurance. For high-risk transactions, stronger methods improve attribution and reduce fraud.

Electronic Signature
Templates
Finance
Credit Card Fee Agreement

Credit Card Fee Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

CREDIT CARD FEE AGREEMENT

Parties and Effective Date

This Credit Card Fee Agreement (Agreement) is made between Processor Name: and Merchant Name: . Effective Date:

Contact and Identification

Processor Contact Processor Address Merchant DBA (if any) Merchant Address

Recitals and Scope

WHEREAS, Processor provides payment processing services that permit Merchant to accept credit card and debit card transactions; and WHEREAS, Merchant agrees to compensate Processor for services and pass-through costs in accordance with the Fee Schedule and terms set forth below.

Fee Schedule

The parties agree that fees shall be assessed as described in the table below. Fees listed include processing charges, assessment fees, and any per-transaction surcharges permitted by applicable law. All monetary fields are US dollars unless otherwise specified.

Description	Rate / Amount	Frequency	Application

Additional fees (including but not limited to chargeback fees, retrieval fees, equipment rental, and early termination fees) will be assessed as set forth in Merchant statements or in writing. Fee adjustments to reflect changes in card brand assessments or governmentally mandated fees may be applied upon notice.

Billing and Payment

Processor will deliver statements to Merchant on a periodic basis. Merchant authorizes Processor to debit the Merchant account for fees, chargebacks, refunds, and any amounts due under this Agreement. Billing cycle: . Amounts are due within days of statement date. Late fee: .

Statements, Reconciliation and Audits

Merchant shall review statements promptly and notify Processor in writing of any dispute within 60 days. Absent timely written notice, statements will be deemed accurate. Processor may audit transaction records subject to reasonable prior notice and confidentiality protections.

Chargebacks, Refunds and Risk

Merchant accepts full responsibility for chargebacks, refunds, and customer disputes. Chargeback fees assessed by Processor will be recoverable from Merchant on the next statement. Processor may withhold funds or place reserves to cover disputed amounts or excessive chargeback activity; such actions do not constitute a breach by Processor when taken in good faith.

PCI Compliance and Data Security

Merchant shall maintain compliance with card brand rules and applicable data security standards (PCI DSS). Merchant certifies that it will not store prohibited cardholder data and will implement required safeguards. Processor is authorized to transmit data to card networks and service providers solely for processing purposes.

Merchant PCI Attestation

Term, Renewal and Termination

The initial term of this Agreement is months from the Effective Date and shall automatically renew for successive periods of equal length unless either party provides written notice of non-renewal at least days prior to the end of the then-current term. Processor may terminate immediately for material breach, insolvency, excessive chargebacks, or violation of card brand rules.

Representations, Warranties and Covenants

Each party represents that it is duly organized and has authority to enter this Agreement. Merchant warrants that all transactions presented for processing are bona fide and that Merchant will comply with all applicable law, card brand rules, and disclosures to cardholders.

Indemnification and Liability

Merchant shall indemnify, defend and hold Processor harmless from any claims, losses, fines or liabilities arising from Merchant's breach, fraud, failure to comply with card brand rules, or unauthorized retention of cardholder data. Processor's aggregate liability under this Agreement shall not exceed the total fees paid by Merchant to Processor in the six months preceding the claim, except for willful misconduct or gross negligence.

Taxes and Assessments

Fees do not include taxes imposed by any governmental authority. Merchant shall be responsible for all taxes, assessments, or fees (excluding taxes based on Processor's net income) resulting from the services or fees under this Agreement.

Confidentiality

Each party will keep confidential non-public business information obtained in connection with this Agreement and will not disclose such information except as required by law or to perform obligations under this Agreement. Confidential information excludes information independently developed or publicly available.

Governing Law and Dispute Resolution

This Agreement shall be governed by the laws of the State of without regard to conflict of laws principles. The parties agree to negotiate in good faith to resolve disputes; if unresolved, disputes shall be resolved in the courts located in the governing state.

Notices

Notices under this Agreement shall be in writing and delivered to the addresses below or to such other address as either party may designate by notice.

Processor Notice Address Merchant Notice Address

Amendment and Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes prior agreements. Any amendment must be in writing and signed by both parties.

Additional Terms

Special Provisions, Notes, or Modifications

Processor:

By:

Date:

Merchant:

By:

Date:

What a Credit Card Fee Agreement Is

A Credit Card Fee Agreement is a written contract between a merchant and a customer or client that documents whether the merchant will pass card-processing costs to the payer, the fee amount or calculation method, and the circumstances when the fee applies. The agreement clarifies scoring, rounding, maximum percentages, and any minimum or fixed surcharges. It also sets billing timing, refund or reversal conditions, and dispute handling. Clear terms reduce chargebacks, regulatory risk, and customer confusion when card-processing or convenience fees are assessed.

Why this Agreement Matters for Businesses

A written Credit Card Fee Agreement documents consent to pass processing costs, establishes transparent fee mechanics, and creates an audit trail for disputes and tax reporting. It helps merchants comply with card network rules and consumer-protection expectations while reducing operational ambiguity.

Who commonly completes a Credit Card Fee Agreement

Use varies by industry; specialized rules apply in regulated sectors such as healthcare and finance where additional disclosures or BAAs may be required.

Retail and e-commerce merchants accepting online or in-person card payments and managing surcharge policies.
Service providers and contractors who invoice clients and may apply a processing surcharge to invoices.
Finance and billing teams responsible for payment policy, merchant-acquirer relationships, and customer disclosures.

Core elements every professional agreement should include

A complete Credit Card Fee Agreement names parties, describes fee calculation, sets effective dates, explains authorization and refund rules, and specifies governing law and dispute resolution. These elements reduce ambiguity and support enforcement.

Parties

Full legal names and contact details for payer and merchant, including business entity type and billing address.

Fee Formula

Exact surcharge method: fixed amount, percentage of transaction, or tiered schedule. State maximums or caps should be explicit.

Scope

Which transactions are covered (card-present, card-not-present, refunds, partial refunds, recurring payments) and excluded transaction types.

Effective Date

Start date for enforcement and any notice period before new fees apply; critical for consumer-facing agreements.

Authorization

Customer consent mechanism (signed agreement, checkbox, invoice language) and how consent is recorded and retained.

Governing Law

Designated state law for interpretation, plus remedies, limitation of liability, and dispute resolution method.

Required information fields at a glance

Merchant name: Full legal entity name

Customer name: Legal name on payment method

Fee amount: Percentage or fixed amount

Effective date: MM/DD/YYYY format

Transaction scope: Included/excluded transactions

Contact info: Billing address and support email

Step-by-step: creating and executing the agreement

Follow these steps to draft, accept, and document a Credit Card Fee Agreement with a clear audit trail for compliance and disputes.

01

Draft: Define parties, fee method, scope, and effective date.
02

Review: Have legal or billing review for card network compliance.
03

Obtain consent: Collect signed or e-signed customer authorization.
04

Store record: Keep a retrievable copy with audit metadata and timestamps.

Configuring the agreement for digital workflows

Set up fields and authentication to capture consent, reduce fraud, and preserve an evidentiary audit trail when signing electronically.

Field	Configuration
Signature field	Required; capture timestamp and signer IP
Authentication	Email plus SMS or KBA for higher assurance
Conditional fields	Show fee details only when surcharge is selected
Template saving	Save standard language for reuse and version control

Where to send and how to route completed agreements

Decide a single authoritative destination for executed agreements and configure automated routing to legal, billing, and archive folders.

Customer copy: Deliver signed PDF to customer email automatically
Billing system: Attach agreed fee terms to the invoice record
Legal archive: Store long-term with access controls
Merchant records: Sync executed copy to accounting and CRM

Technical considerations for eSigning and eSubmission

Verify platform compliance requirements (e.g., HIPAA BAA if applicable) and ensure retention and export options meet your recordkeeping policy.

File formats: PDF and DOCX compatibility
Integrations: CRM and accounting connectors
Security: AES-256 at rest; TLS 1.2/1.3

Timing and critical deadlines to track

Track effective dates, notice periods, and tax reporting deadlines related to merchant surcharge income and payer documentation.

Effective notice period:

Provide any consumer-facing notice per card network rules; check acquirer terms for timing

Refund window:

Process refunds per merchant policy; reconcile with chargeback periods

1099-NEC reporting:

Jan 31 is the recipient and IRS deadline for 1099-NEC

Record retention start:

Effective date determines retention clock for tax and contract purposes

Audit access:

Make signed records available promptly for processor or regulator requests

Risks and potential penalties for defective agreements

Unenforceable fee: Fee may be void

Chargebacks: Increased dispute volume

Card network fines: Monetary penalties possible

Regulatory action: State consumer agency enforcement

Reputational damage: Customer complaints increase

Tax reporting errors: Incorrect 1099 treatment

Common mistakes to avoid when preparing this agreement

Using vague language for the fee calculation leads to disputes; specify percent, rounding, and caps to avoid interpretation conflicts.
Failing to obtain explicit customer consent or a recorded e-signature can make the surcharge unenforceable in chargebacks.
Not aligning agreement language with card network or acquirer policies may trigger penalties or processing restrictions.
Keeping only email confirmations without a signed agreement or clear audit trail increases risk in merchant disputes and audits.

eSignature providers for executing Credit Card Fee Agreements

Comparison of common vendor pricing and basic capability indicators for signing and storing fee agreements. Platform choice should align with security, compliance, and volume needs.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of related signNow customers

Two short examples show how businesses used digital signing to manage payment-related agreements and improve workflow controls.

Martin Properties

Tim Martin, Founder, used online signatures to replace paper fee addenda and speed tenant acceptance.

The team processed agreements remotely to reduce move-in delays.
As a result, they maintained compliance and kept a searchable archive tied to each lease for accounting and dispute resolution.

Fertility Centers

John Butler, Founder, adopted eSignatures to manage patient billing consent forms and fee disclosures.

Patient consent was captured before treatment authorizations.
The process improved document completeness, ensured retention for medical record rules, and reduced admin follow-up.

Practical tips for accurate, efficient completion

Apply consistent template language, strong authentication, and clear customer disclosures to minimize disputes and processing friction.

Standardize language across agreements

Use a single approved template for fee calculations, caps, and refund handling to reduce interpretation disputes and ease reviews.

Capture explicit consent

Record affirmative customer consent via signed agreement or a checked consent box with an audit trail showing date, time, and IP.

Align with processor rules

Verify surcharge policies against your acquirer and card networks; noncompliance can result in declines or fines.

Keep retrievable records

Store executed agreements with metadata and make them available for audits, chargeback disputes, and tax reporting.

FAQs and common troubleshooting for Credit Card Fee Agreements

Answers to frequent practical questions about enforceability, e-signing, required notices, and recordkeeping for surcharge agreements.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.
Do I need a notary or witness?
Most private surcharge agreements do not require notarization; state-specific rules vary. Use the state requirements table for jurisdictions with different standards.
What if a customer disputes the fee?
Provide the executed agreement and audit trail showing consent. Disputes may still trigger chargebacks; align refund and reversal policies to minimize losses.
How should I store executed copies?
Retain signed agreements in a secure, access-controlled repository with tamper-evident storage, export capability, and retention policies aligned with IRS and industry rules.
Are consumer disclosures required?
Consumer-facing financial disclosures should meet ESIGN consumer-disclosure requirements where applicable, and card networks or state law may impose additional notice obligations.
What authentication level is recommended?
Use email plus SMS or knowledge-based authentication for higher assurance. For high-risk transactions, stronger methods improve attribution and reduce fraud.

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