106
107
CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
Section 5.1.3 – Price Signaling: Discounting, Surcharging, and Steering Price signaling refers to the transmission of a company’s pricing intentions to competitors, customers, or the broader market. This can be explicit or implicit and aims to sway market behavior or expectations. Surcharging is a common form of price signaling. Surcharging is a merchant’s act of adding a charge to a transaction based on the customer’s selected payment method (such as card and other payment methods), card type, or card network. Surcharging practices may be governed by national, state, provincial, and local laws or regulations and differ across countries and regions (refer to Figure 5.2). Certain jurisdictions either ban surcharging or limit the surcharge amount, while others allow surcharging under specific regulatory guidelines. Unless explicitly permitted by national or local laws, global card network rules generally prohibit or inhibit merchants from applying a surcharge.
Figure 5.2 – Map of Global Surcharging Requirements 232
Figure 5.1 – Local Card Network Presence Around the World 231
Global Payments Report 2023. The United Kingdom and Spain are not included due to a lack of local card presence. China’s UnionPay, although originating from China has not been included due to its widespread global acceptance; the same is the case for JCB in Japan. 232 CMSPI Estimates and Analysis. This should not be treated as exhaustive of all surcharging restrictions and excep-
231 Euromonitor 2023. Brazil, Mexico, Indonesia, Turkey are from Euromonitor 2021. Saudi Arabia is from Worldpay
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