This popular solution allows a small service fee, usually between 2% and 3%, to be added to all credit card sales; however, as an incentive for customers to pay in cash or use a debit card – this service fee is not passed through to the customer. Other variations are available, of which all are subject to Card Association and state regulations.
Benefits of Surcharging
Helps offset credit card processing expenses
Allows businesses to maintain more of their sales revenue
Provides customers with a choice of payment methods and gives the incentive to pay with a debit card or cash
Can reduce the impact of processing fees on profit margins
Creates a transparent pricing structure when properly disclosed
Surcharging programs are subject to card-network rules and applicable federal, state, and local requirements. Program requirements can vary, so businesses should ensure their program is properly configured and disclosed.
Why It Works:
Cost Savings for Businesses: Credit card processing fees can eat into profits, especially for businesses with higher transaction volumes. This model helps reduce or even eliminate that burden.
Customer Choice: By offering a fee avoidance option to those who pay with cash or debit, businesses provide an incentive for customers to choose less costly payment methods, making it a win-win situation.
Important Considerations:
It’s essential for businesses to stay compliant with local laws and regulations governing payment surcharges. Some states or regions have specific rules about how and when these fees can be applied, so it’s important to understand the legal framework before implementing this strategy.Growing in popularity, this solution has become a viable opportunity for businesses to reduce costs and enhance their bottom line.
It’s a payment processing strategy that encourages customers to pay with cash or debit cards rather than credit cards in order to reduce processing fees for businesses.
- Eliminate Up to 100% Monthly Merchant Processing Fees
- Next Day Funding
- FREE Loaner Terminal (Plug & Play Upon Arrival)
- Apple Pay, Google Pay, Tap & Go
- No Contract
- No Monthly Program Fees
- No PCI Compliance Fees
- Keep $5k-$25k+ in Your Business
- Freely Accept ALL Credit Cards
- 24/7 All U.S. Based Tech Support
Customer Cash Incentive Program Information Request Form
You can email ralph@zeekepaymentsolutions.com for more information or fill out the form below.