> For the complete documentation index, see [llms.txt](https://developers.bead.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developers.bead.xyz/faqs-and-troubleshooting/payments-faqs/consumer-fee-passthrough-for-wallet-and-crypto-tenders.md).

# Consumer Fee Passthrough for Wallet and Crypto Tenders

This page provides directional information about consumer fee passthrough considerations for Bead wallet and crypto tenders. It is not legal or compliance advice. All information on this page should be independently reviewed against the specific merchant agreement, applicable platform terms, and the laws of the states where the merchant operates before any decisions are made.

**Background**

Merchants sometimes ask whether they can pass Bead's processing fee through to the consumer, the same way many businesses handle credit card surcharges today. The answer varies by tender type and is influenced by platform merchant agreements, federal regulatory frameworks, and state law. This page outlines the landscape for each Bead tender so integrators and partners are aware of the considerations involved.

Card network surcharging rules (Visa caps, Mastercard registration requirements, equal-treatment obligations) were built around the card brands and do not apply to Bead tenders. When a merchant adds a fee for a Bead payment method, it is generally classified as a convenience fee or service fee rather than a card surcharge. No clear federal framework currently governs convenience fees on emerging payment methods. State law applies regardless of tender type.

**How fees are passed through at the API level**

There is no separate API field for surcharges or convenience fees. If a fee is incorporated, the adjusted total must be calculated before the payment is created and passed as the `amount` in the Create Payment request. Example: on a $100.00 order with a 3.5% processing fee, create the payment for $103.50. Bead does not validate or enforce fee structures. For Create Payment details, see [Create Payment](/payments/create-payment.md).

**Crypto tenders (BTC Lightning, BTC on-chain, USDC on Base, USDC on Solana)**

No federal or state law is known to broadly prohibit merchants from charging a convenience fee when a consumer pays with crypto. This is generally considered the most straightforward of the Bead tender types from a fee passthrough perspective. Merchants should still review applicable state law and disclose any fee to the consumer at the point of sale.

**PayPal**

The [PayPal User Agreement](https://www.paypal.com/us/legalhub/useragreement-full) states: "You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions." Merchants should review their specific PayPal merchant agreement alongside this language to understand what their arrangement permits.

**Venmo**

Based on Bead's review of Venmo's merchant terms, Venmo prohibits merchants from charging customers any surcharge or additional fee for completing transactions using Venmo. There is no documented carve-out for a consistently applied flat fee. Merchants should review their specific signed Venmo merchant agreement before drawing any conclusions about what is permitted for their integration.

**Cash App Pay**

Cash App's publicly available terms do not address merchant surcharging directly. Fee passthrough permissibility is governed by the signed merchant agreement. Merchants should review their specific agreement before drawing any conclusions about what is permitted.

**Klarna**

BNPL products in the United States sit at the intersection of consumer lending law and payments regulation. Adding a merchant fee on top of a Klarna transaction may trigger disclosure obligations under applicable law, independent of what Klarna's merchant agreement says. Merchants should obtain dedicated legal review before drawing any conclusions about fee passthrough for Klarna transactions. This applies to both percentage-based fees and flat fees.

**State law considerations**

State law applies on top of platform terms and affects what merchants can charge consumers regardless of tender type. The following states have considerations relevant to consumer fee passthrough.

| State                                    | Consideration                                                                                                                        |
| ---------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ |
| Connecticut, Massachusetts, Maine        | Outright ban on consumer surcharging                                                                                                 |
| California (SB 478, effective July 2024) | Fees must be included in the advertised price. Itemized surcharges at checkout create compliance exposure regardless of tender type. |
| Minnesota (effective January 2025)       | Broad pricing transparency rule that applies beyond card tenders. Same practical effect as California.                               |
| New York, New Jersey                     | Permitted in principle, but the fee may not exceed the merchant's actual cost.                                                       |
| Colorado                                 | Capped at 2%                                                                                                                         |
| Texas                                    | Prohibited by statute, but a federal court found the prohibition unconstitutional. Enforcement posture remains unclear.              |

Merchants operating in multiple states should be aware that California and Minnesota's pricing transparency rules are broad enough to affect non-card tenders. All state law considerations should be reviewed with qualified legal counsel for the merchant's specific operating footprint.

**Summary by tender**

| Tender             | General awareness                          | Notes                                                         |
| ------------------ | ------------------------------------------ | ------------------------------------------------------------- |
| Crypto (BTC, USDC) | ✅ No known broad prohibition               | Disclose at point of sale; review state law                   |
| PayPal             | ✅ Handling fee permissible with conditions | See PayPal User Agreement; review specific merchant agreement |
| Venmo              | ❌ Merchant terms prohibit surcharges       | No flat-fee carve-out confirmed; review signed agreement      |
| Cash App Pay       | ⚠️ No public position available            | Review signed merchant agreement                              |
| Klarna             | ⚠️ Consumer lending law applies            | Requires legal review; conditions vary by agreement           |

**Related**

* [Create Payment](/payments/create-payment.md)
* [Managing Tender Types](/entity-management/terminal-management/managing-tender-types.md)
* [Tender Types](/reference-guide/enumerations-and-schemas/tender-types.md)
* [Alternative Payments](/reference-guide/enumerations-and-schemas/tender-types/alternative-payments.md)
* [Does Bead support a refund API for crypto, wallet, and BNPL payments?](/faqs-and-troubleshooting/payments-faqs/does-bead-support-a-refund-api-for-crypto-wallet-and-bnpl-payments.md)


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