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View Full Version : Surcharge Fee for Credit Cards?


arrow_runner
06-21-2010, 09:21 PM
A local tech friend of mine charges a 3% surcharge fee for anyone wishing to pay with a credit card. He didn't say whether or not his customers reacted negatively to this. He specializes in building custom systems and explained how the merchant services would suck up a good chunk of his profit on a $400 system.

I'm considering doing this myself, but I (I might just live in a cave too)can't think of any other type of business that charges a separate fee if the customer pays with a credit card.

Has anyone else done or considered this?

rhinetech
06-21-2010, 09:30 PM
I was under the impression it was against the 'rules' to charge extra for using a credit card?

I know some places get away with it by saying, "no the credit charge is our normal price, we give a discount to those that pay cash/check."

Double check though... you don't want to break these terms (if they do indeed exist).

arrow_runner
06-21-2010, 09:31 PM
Oh, good point .

MrUnknown
06-21-2010, 09:48 PM
Merchant agreements prohibit adding a surcharge for credit card transactions. Yes, you can get around it by offering a discount for paying by cash, but it must be advertised as such not "add 5% if paying by credit card" but "discount of 5% if paid by cash" is okay.

Also, third-party processors like PayPal and I believe Google Checkout also prevent this practice in their agreements because it would violate their merchant agreements.

bsd13
06-21-2010, 09:51 PM
Why not just mark up prices 3% or so across the board without saying it's due to customers paying with credit cards? Then you don't have to worry about it, because it is covered. Just tell customers you have a 3% operating increase due to additional expenses you've had to endure as a business.

arrow_runner
06-21-2010, 10:02 PM
Why not just mark up prices 3% or so across the board without saying it's due to customers paying with credit cards? Then you don't have to worry about it, because it is covered. Just tell customers you have a 3% operating increase due to additional expenses you've had to endure as a business.

That's also something I'm considering.

IAMPC
06-21-2010, 10:45 PM
Yes it is not legal to do it as far as I know.

tkrabec
06-21-2010, 10:51 PM
Whether you can charge the fee depends on a few things iirc.
1 law
2 your merchant agreement

ProTech-MN
06-22-2010, 02:49 PM
I'm pretty certain that Visa & MasterCard prohibit surcharges and as others have mentioned, the loophole is to offer cash discounts.

-Randy

arrow_runner
06-22-2010, 03:08 PM
lol, ok. I get it. :P

vdub12
06-22-2010, 04:10 PM
You can charge for debit.

vdub12
06-22-2010, 10:15 PM
but then again McDonalds charges a Drive thru Tax so anythings possible

Are you serious, When did this start?

carlitos31
06-22-2010, 10:38 PM
and if you eat there it says "eat in tax"