Why Manually Adding A Fee, Surcharging, Is Frowned Upon

Why should you, as a business owner, not simply and manually add a fee on top of each credit card transaction to offset processing costs? That is surcharging, and it will put your merchant services account at risk.

Surcharging, the practice of merchants manually adding a fee on top of a transaction when customers use credit cards, is not compliant with regulations in many states. This practice can result in legal consequences and fines for businesses that choose to surcharge their customers. Sometimes merchant payment services accounts can be shut down for surcharging.

On the other hand, the cash discount program offers a compliant alternative that automatically applies a discount to transactions made with cash. This program is universally and electronically applied, ensuring that businesses remain in compliance with state regulations in all 50 states, including Ohio. By implementing a cash discount program, merchants can avoid the risks associated with surcharging while still effectively offsetting processing fees.