Is it possible to charge a processing fee on a Chapter 13 bankruptcy payment plan? We own a couple of properties and have a monthly payment system set up with all of our tenants to withdraw the payments automatically. One of our tenants just filed for bankruptcy but, still resides in the property and he’s is still set up for this montly extraction.

1 Answers

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   Danielle on Sep 21, 2012 Reply

   As a merchant, you can charge fees how you deem fit for your business. The one restriction that exists right now for merchant accounts is that you are not able to add a surcharge to a transaction if a customer wishes to pay by credit card. This is currently on trial with the competion bureau so even this rule may change.
   But if the customer has file for chapter 13, it’s unlikely you’ll be able to collect on credit debt. And unfortunately, because the transaction is recurring payment, there is little recourse for chargebacks. Best thing to do is call your acquirer and find out what options you have to get paid.

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