As a business owner, you understand that there is a cost associated with accepting credit cards. Rather than absorb these costs, some merchants are choosing to pass these fees to their customers in the form of a surcharge. A surcharge is an extra fee that is added to a customer’s bill when they pay using a credit card. Surcharges are also known as “checkout fees”. Surcharges are intended to cover the additional costs associated when customers pay with a credit card rather than using another form of payment.

Some merchants may confuse cash discounting with surcharging. They are not the same. Cash discount refers to a reduction from the listed price when a customer chooses to pay with cash. A surcharge is a fee added to the listed price when a customer pays with a credit card. The difference is subtle, but the rules and regulations for each method are very different. 

Credit card surcharging has gained popularity in the last several years and legal changes have removed some of the barriers. The practice of surcharging may sound like an attractive proposition, but surcharging comes with a long list of considerations. In the rest of this article, we will be reviewing the top 12 items you should understand before implementing a surcharge program.

Interchange rates are the underlying credit card processing costs associated with the transfer of funds between the credit card processor and the bank that issued the credit card used by your customer. There are hundreds of different Interchange categories. Each of these categories applies to the type of card being accepted and the method used to process the credit card. If you are reviewing your credit card processing statement and you see the letters “EIRF”, take note.

Your Claim Buyout Estimate Is As Simple As Providing Your January 2019 Merchant Statement. The Claim Buyout Program gives you cash today so you can invest in your business. There is no obligation to get an estimate, it takes a minimal amount of your time, to get your funds within 7 days.

One of our clients received a $460,000 buyout! Don’t delay, funds are limited.

Thomas Vavrin
Director of Audit Advantage
877-799-2720
[email protected]
www.getauditadvantage.com