Navigating the intricacies of surcharging while adhering to Generally Accepted Accounting Principles (GAAP) can be a complex process for any business. Biller Genie’s Compliant Surcharging feature is designed to help businesses maintain GAAP standards effortlessly, ensuring financial transactions are accurately recorded and books are kept in pristine order.

The Essence of GAAP in Surcharging:
GAAP provides a framework for consistency, accuracy, and fairness in financial reporting which is particularly relevant when implementing surcharging on credit card transactions. It dictates that revenue and expenses must be recorded in the period they are incurred – an important consideration when applying additional fees like surcharges.

Biller Genie’s Compliant Surcharging:
With Biller Genie, businesses can implement a surcharging program that’s transparent, fair, and compliant with both GAAP and credit card brand regulations. Here’s how it simplifies the process:

  1. Clear Customer Communication: Before a transaction is completed, customers are informed about the additional surcharge through a clear popup, promoting transparency.
  2. Regulatory Compliance: Biller Genie ensures surcharges are not applied to debit and prepaid cards and that all customer notifications meet regulatory requirements. Surcharges are limited to a maximum of 3% and are not available in certain states.
  3. Seamless Acquirer Notification: Businesses must notify their acquirer according to card brand rules before implementing surcharging. Biller Genie can help streamline this process.
  4. Non-Taxable Technology Fee Item: By default, the technology fee is non-taxable, with options to adjust based on your unique tax considerations. Biller Genie can automatically handle tax calculations if the fee is set as taxable.
  5. Customizable Fee Names: The default “Technology Fee” can be renamed in your accounting software to match your company’s terminology, maintaining consistency across your financial documents.

Maintaining GAAP Standards with Biller Genie:
To stay aligned with GAAP standards when using Biller Genie’s surcharging feature, follow these best practices:

  • Use Sales Receipts for Syncing Fees: When technology fees are collected, sync them back to your accounting software as sales receipts. This ensures that the revenue from surcharges is recorded in the correct period.
  • Avoid Sync Errors with Line Items: If you lock invoices after a certain period for GAAP compliance, syncing technology fees as line items may lead to synchronization errors. Biller Genie’s recommended practice prevents this issue.
  • Correct Period Recording: Ensure that surcharges are recorded in the same period when the payment is made to adhere to the matching principle of GAAP.

Biller Genie’s Compliant Surcharging feature allows businesses to offset the cost of credit card acceptance while keeping their financial reporting up to GAAP standards. By automating surcharge calculations, transparently communicating fees to customers, and ensuring proper recording of these fees, Biller Genie helps businesses maintain orderly books with reduced effort and increased accuracy. With Biller Genie, you can focus on growing your business, confident that your accounts are compliant and correctly managed.