What You Need to Know
Surcharge fees are not available in all states.
Surcharging is prohibited in Connecticut, Maine, Massachusetts, and New York, and is not available in Puerto Rico. If your clinic is in one of these locations, this feature cannot be activated.
For clinics with multiple locations, surcharge eligibility may vary by location. Contact merchant@shepherd.vet to confirm whether surcharge fees can be enabled for a specific clinic location.
The surcharge applies to credit cards only.
Debit card transactions do not incur a surcharge, even if the client uses a card that can function as either.
Clients see the surcharge amount before approving payment.
The surcharge is displayed on the terminal or payment screen prior to confirmation — clients are not charged without visibility of the fee.
Refunds on surcharge payments are handled automatically.
Shepherd Pay calculates the correct refund amount including the surcharge. See [Shepherd Pay: Refunds and Voids] for full refund workflows.
Activating Surcharge Fees
Surcharge fees are separate from Shepherd Pay and must be activated by Shepherd Pay Support.
To activate surcharge fees for your clinic:
Confirm your clinic is not located in a restricted state (CT, ME, MA, NY) or territory (Puerto Rico)
Contact merchant@shepherd.vet to request surcharge activation
Once activated, enable the surcharge toggle in Shepherd:
Navigate to Admin > Clinic Settings > Financial Settings > Shepherd Pay
Toggle on Enable Surcharge Fee
Click Save
Surcharges will apply to all eligible credit card transactions from the point of activation forward.
How the Surcharge Is Applied
When a client pays by credit card with surcharging active:
The base invoice amount is displayed at checkout
A 3% surcharge is calculated on the base amount
The total (base + surcharge) is shown to the client on the terminal or payment screen
The client approves the total before the transaction processes
The surcharge amount appears as a line item in the transaction record and in reporting.
Troubleshooting
The surcharge toggle is not appearing in Shepherd Pay settings
The surcharge toggle only becomes available in Shepherd after activation has been completed by Shepherd Pay support. If you do not see the toggle after requesting activation, confirm with merchant@shepherd.vet that the activation process is complete before troubleshooting further.
The surcharge is not being applied to a transaction
If a transaction processes without the expected surcharge:
Confirm the Enable Surcharge Fee toggle is on in Admin > Clinic Settings > Financial Settings > Shepherd Pay
Confirm the payment method selected is a credit card, not a debit card
Note that some cards that appear to be credit cards are classified as debit cards by the issuing bank — in these cases the surcharge will not apply and this is expected behavior
If the toggle is on and the issue persists, contact merchant@shepherd.vet.
A client was charged the surcharge but says they were not informed
The surcharge is displayed on the terminal and payment screen before the client approves. If a client disputes being informed, you can reference the transaction record in the Gateway Portal, which shows the surcharge as a line item on the approved transaction.
Surcharge Fees in Reporting
Surcharge amounts appear as a separate line item in Shepherd's reporting. To reconcile surcharge revenue:
The End of Day Report includes surcharge totals in the payment breakdown
The Gateway Portal Batch History shows surcharge amounts per transaction
When surcharge fees are active, the amount charged to the client will differ from the original invoice subtotal. When reconciling deposits, account for surcharge fees alongside any refunds, voids, batch timing differences, and payments recorded with Shepherd Pay toggled off. Use the Gateway Portal to compare batched Shepherd Pay transactions against the payments recorded in Shepherd for the same date range.
Frequently Asked Questions
Does the surcharge apply to all payment methods?
The surcharge applies to eligible credit card transactions only. Debit cards, cash, checks, and other payment methods are not subject to the surcharge. The surcharge may also not apply to all card scenarios — some cards that appear to be credit cards are classified as debit cards by the issuing bank and will not incur a surcharge.
Can we charge a different surcharge percentage?
No. The surcharge is fixed at 3% and cannot be adjusted.
Can clients opt out of the surcharge?
Clients can avoid the surcharge by choosing to pay with a debit card, cash, or check. The surcharge is tied to the credit card payment method specifically, not applied to all transactions.
If a surcharge payment is refunded, is the surcharge also refunded?
Yes. When a surcharge payment is refunded through the standard Shepherd Pay workflow, the surcharge is automatically included in the refund calculation. For pre-surcharge refunds or legacy refund scenarios, see [Shepherd Pay: Refunds and Voids].
Can I override or remove a surcharge on a specific transaction?
Surcharge behavior is determined by your clinic's surcharge setup. If a surcharge should not be applying as expected, contact merchant@shepherd.vet before processing the transaction manually.
Can I refund only the surcharge amount?
This depends on how the original transaction was processed. Check the original Shepherd Pay transaction for available refund options. If the option is not available in Shepherd, contact merchant@shepherd.vet before processing the refund manually.
Does the surcharge apply to Text-to-Pay payment links?
Surcharge behavior for payment links depends on your clinic's surcharge setup. Contact merchant@shepherd.vet to confirm how surcharges apply to your specific payment link workflow.
\Will activating surcharges affect existing saved cards on file?
No. Activating surcharges does not affect cards already saved to client profiles. The surcharge will apply to future eligible credit card transactions made with those cards going forward.