Convenience Fee for Electronic Payment
Understanding when a convenience fee applies and your right to choose your payment method.
Ohio law expressly permits businesses to charge a convenience fee when a customer elects to use a non-standard method of payment — including credit cards and other electronic payment instruments. Convenience fees are lawful in Ohio regardless of the type of card used, provided the fee is disclosed clearly to the customer prior to completing the transaction. Additionally, federal card network rules (Visa, Mastercard, Discover, American Express) require that any such fee be disclosed upfront and applied consistently.
Ohio convenience fee law | Federal card network merchant rules | 15 U.S.C. § 1666fWhat Is a Convenience Fee?
A convenience fee is a charge assessed when a customer chooses to pay using a non-standard payment method — in this context, a credit card, debit card, or other electronic payment instrument — rather than the dealer's standard payment method of cash or check.
Unlike a surcharge, which is added to the price of a product, a convenience fee is tied to the method of payment you select. It is designed to offset a portion of the processing costs that the dealership incurs when accepting card payments, which include interchange fees, processing fees, and compliance costs assessed by payment networks.
Ohio law recognizes that businesses have the right to pass along these costs to customers who choose the electronic payment option, provided the fee is fully disclosed before the transaction is completed.
Why Ohio Permits This Fee
Ohio law allows convenience fees on transactions regardless of the type of payment card used. This is consistent with Ohio's broader approach to consumer transactions, which permits businesses to establish transparent fee structures provided customers receive clear, advance notice.
When a customer pays by credit or debit card, the dealership is charged an interchange fee by the card network — typically a percentage of the transaction amount. On large vehicle transactions, these fees represent a meaningful cost. Ohio law and federal card network rules permit dealers to recover a portion of this cost through a disclosed convenience fee, rather than building the cost invisibly into vehicle pricing for all customers.
Important limitations under federal law and card network rules:
- Debit card surcharges are prohibited under federal law (Durbin Amendment, 15 U.S.C. § 1693o-2). However, a properly structured convenience fee — tied to the payment environment, not the card type — may still apply.
- Card network caps apply. Visa and Mastercard limit credit card surcharges to 3% of the transaction. Federal law caps surcharges at 4%. Convenience fees must not exceed the dealer's actual cost of acceptance.
- Prepaid cards are treated as debit cards under federal law and cannot be surcharged.
- Prior disclosure is mandatory. Customers must be informed of the fee before the transaction is finalized. We provide this notice at the point of sale.
Your Options at the Time of Payment
You have a genuine choice. Here is what each option means for your transaction:
Disclosure & Consistency
Don Wood Automotive Group applies the convenience fee uniformly — the same fee structure applies to all customers who elect electronic payment. We do not vary the fee selectively. The fee is always disclosed in writing on your purchase agreement before you sign.
If you have any questions about the convenience fee or your payment options, please speak with any member of our finance team before finalizing your transaction. We want every customer to make an informed decision about how they pay.