What Is Surcharging?
What is Surcharging?
Surcharging, also known as “checkout fees,” is the practice of charging customers an additional fee for using certain forms of payment, such as credit cards. While surcharging has long been a controversial practice, it has become more common in recent years as merchants look for ways to offset the high fees charged by credit card companies.
In the past, merchants were prohibited from surcharging in most cases, as it was seen as unfair to consumers. However, a series of legal changes, including a 2018 Supreme Court decision, have made it easier for merchants to surcharge. As a result, many businesses, particularly those with thin profit margins, have begun surcharging customers who use credit cards.
Ready to accept payments anytime, anywhere?
How To Lower Fees With Surcharging
Surcharging can be a controversial practice, as it can be seen as penalizing customers for using a particular payment method. Critics argue that surcharging can be confusing for consumers, who may not understand why they are being charged an additional fee. Additionally, surcharging can create a negative customer experience, as it can be perceived as unfair or even discriminatory.
Despite these concerns, proponents of surcharging argue that the practice is necessary to offset the high fees charged by credit card companies. These fees, known as “interchange fees,” can be significant, and they can eat into a merchant’s profits. By surcharging customers who use credit cards, merchants can recoup some of these costs and improve their bottom line.
Additionally, supporters of surcharging argue that the practice can help to promote the use of lower-cost payment methods, such as debit cards and cash.
By making credit card transactions more expensive, surcharging can incentivize customers to use cheaper forms of payment, which can ultimately benefit both merchants and consumers.
What States Allow Surcharging?
Despite the potential benefits of surcharging, the practice remains highly controversial. Some states, such as California and Florida, have banned surcharging outright, while other states have strict regulations governing the practice. Additionally, many credit card companies have policies that prohibit or limit surcharging by merchants.
Surcharging For Merchants
Overall, surcharging is a complex and controversial issue. While it can help merchants offset the high fees charged by credit card companies, it can also create confusion and dissatisfaction among consumers.
As a result, businesses considering surcharging should carefully weigh the potential benefits and drawbacks before implementing the practice.
Top Payment Gateways
Top Payment GatewaysMay 26, 2023 | Gateway, Payments If you’re running an online business, you know how important it is to have a reliable payment gateway. Your payment gateway is what allows you to accept payments from your customers. There are a lot of different payment gateways out there, so…
Mastering Sales During a Crisis
I have had a number of questions lately from salespeople lately. Some are concerned about the next 30 to 60 days and are looking for direction. Others are using the time to change how they sell. They have been selling face to face, asking for statements,
Finding a Payment Processor for Adult Merchants
All businesses are unique. Every restaurant, grocery store, book shop and retail boutique have their own way of running their business. They have their own image, unique inventory mix, proprietary process, brand, etc. That “thing” that makes them unique.
Modern RiskMay 24, 2023 | Payments, Risk For years, merchant acquirers have, out of both necessity and routine, utilized fairly streamlined categories and criteria when determining how to assess the risk a new merchant possesses. Whether credit, fraud, or reputational risk, the requirements primarily revolve around business type or MCC…
Square TerminalMay 22, 2023 | Payments A Square terminal provides a modern interface to process your payments. Square is one of the largest payment processors in the world. As a result, their terminal technology is fast and easy-to-use for merchants and customers alike. It’s likely you’ve used a Square terminal…
Compelling Evidence 3.0, Visa
Compelling Evidence 3.0, VisaMay 22, 2023 | Payments, Signature News Empowering Merchants to Combat Friendly Fraud For online merchants, the worst kind of fraud is the friendly kind. Malicious fraudsters utilizing scaled techniques are comparably easier to catch when you have a…
How To Accept Bitcoin As Payment
How To Accept Bitcoin As PaymentMay 22, 2023 | Payments To accept Bitcoin as payment on your website you’ll need to install a crypto payment gateway. A gateway exchanges the data between the customer’s account and yours. These integrations are found through payment processors that support cryptocurrency exchanges. If you…
Elon Musk’s Twitter Payment Platform
Elon Musk’s Twitter Payment PlatformMay 19, 2023 | Payments Elon Musk has recently made a splash in the payments industry with his new Twitter Payment Platform, which promises users a fast and secure way to transfer money. But is this platform a threat to other payment processors? In this article,…
Accept Crypto Payments On Shopify
Accept Crypto Payments On ShopifyMay 19, 2023 | Payments With a surge in Bitcoin popularity, many eCommerce stores want to accept crypto payments on Shopify. Customers seek new options and checkout, and among them is cryptocurrency. For online stores, this means adapting payment gateways that suit alternative forms of payment. …
How to Accept Crypto Payments
How to Accept Crypto PaymentsMay 17, 2023 | Payments If you want to learn how to accept crypto payments, follow these simple steps. Find a cryptocurrency integration that works with your website There are major solutions like Bitpay or Coinbase that work with major websites If you currently have a…