News & Updates


DFS Summarizes Ability of Agents to Charge Credit Card Fees

DFS Summarizes Ability of Agents to Charge Credit Card Fees

From time to time, questions arise as to whether an agent may impose credit card fees on customer transactions.  The insurance code treats this issue differently for agents than for insurers.  The Florida Department of Financial Services (DFS) recently summarized the ability of agents to charge credit card fees as follows:

If a credit card company charges a fee for payments of policies/premiums, then in accordance with s. 626.9541(1)(o)2., F.S., a licensed agent or agency may charge the exact amount of the fee charged by a credit card facility in connection with the use of a credit card in addition to the premium required by the insurer.

A licensed agent can collect or transmit premiums through the arrangement or facilities of a credit card facility or organization, for the purpose of insuring credit card holders or prospective credit card holders IF:

  • The insurance or policy which is the subject of the transaction is noncancelable by any person other than the named insured, the policyholder, or the insurer;
  • Any refund of unearned premium is made to the credit card holder by mail or electronic transfer; and
  • The credit card transaction is authorized by the signature of the credit card holder or other person authorized to sign on the credit card account.